Ecosystem, Announcements, News, Partnership

Introducing the Dragon DeFi Initiative

*Note: “Dragon Chain” is a placeholder name for the upcoming merged chain, the official name will be revealed at a later date. 

The Dragon DeFi Initiative (D2I) is an incentive program designed to foster a strong DeFi ecosystem on Project Dragon’s integrated chain, tentatively named Dragon Chain. Since the approval of KGP-26, we have received over 20 applications and have selected three promising DApps that we will be actively working with, to prepare the DeFi ecosystem for the upcoming launch of Dragon Chain.

The current D2I program prioritizes the discovery and support of public infrastructure, such as decentralized exchanges (DEXs) and lending protocols, which are core to any DeFi ecosystem. DApps that adopt innovative structures, such as on-chain orderbooks and hybrid DEXs, as well as existing ecosystem participants that meet the requirements of D2I are also eligible for the program. 

Additionally, a separate Liquidity Incentive has been created to complement D2I, which will be granted to approved DApps after a thorough review of their strategy to effectively leverage the incentive program to attract and sustain TVL.

D2I Program Review Process

All D2I applicants will be reviewed by the D2I Grant Committee, a working group of subject matter experts, through a transparent and fair review process. This committee includes core members from Klaytn and Finschia foundations, as well as external industry luminaries to provide expertise and objectivity. More information can be found here.  

Grant Committee Members

*The names of the Grant Committee members are presented in alphabetical order.

  • Alwin Peng, CTO of Vertex
  • Colin, VP of Strategy at Klaytn Foundation
  • Doo Wan Nam, COO of Stablelabs
  • Earl, Senior Consultant at Despread
  • John, Research Analyst at Presto Labs
  • Mike, Head of Research at Undefined Labs
  • Moonsoo, Co-founder of Lano Technology
  • Ryan, CTO of Swapscanner

Welcoming the first three D2I beneficiaries

Since its launch, the D2I program has already received over 20 applications, from which we have selected these three teams that we believe will make significant contributions to the Klaytn DeFi ecosystem – Dragonswap, iZUMi Finance, and Wombat Exchange. As global blue-chip DeFi projects, each of these teams have their own unique strengths, and we believe that they will create synergies within the larger Dragon Chain ecosystem. 

About iZUMi

Website | Twitter | Docs | Medium

iZUMi Finance is a one-stop service decentralized finance protocol. Based on the philosophy that every token deserves better on-chain liquidity efficiently and continuously, iZUMi Finance operates an intuitive and easy-to-use DEX service. As a multi-chain DEX utilizing a decentralized liquidity-AMM model, iZUMi has accumulated 14 million transactions, deployed on multi-chains including zkSync Era, Mantle, Manta Network, ZKFair, Linea, Scroll, and BNB Chain. iZUMi Finance manages over $100 million in liquidity for 2.8 million users and leading institutions including global VCs such as Mirana, HASHKEY, IOSG, and BIXIN Ventures. Relevant real-time statistics can be found on this dashboard

As such, iZUMi Finance powers iZiSwap, a top multi-chain DEX brand with a DL-AMM (decentralized liquidity AMM) design. With over $100 million in TVL and 1 million MAUs, iZiSwap is the first centralized liquidity DEX to support on-chain order book functionality like CEX. iZiSwap also offers DEX-as-a-Service, iZUMi’s unique solution for adapting to the rapidly growing Layer 2 and new public chain landscape.  The DaaS solution is specifically tailored for public chains, run by an independent team, and empowers $iZi holders. 

About Wombat Exchange

Website | Twitter | Medium

Wombat Exchange is a multi-chain stablecoin that focuses on redesigning the stablecoin experience through innovative algorithms. It offers an innovative protocol that allows users to swap, bridge, and monetize from one unique pool, boasting over $3.55B in cumulative trading volume and $14.42M in daily trading volume. Meanwhile, Wombat’s open liquidity pool allows staking with a single token, facilitating easy liquidity growth and ensuring maximum capital efficiency and asset scalability. 

On top of this liquidity pool, Wombat Exchange has built a Bribe Market with a gamification element to give users incentives beyond just LPs. This incentivizes users to do fun activities that add value to the Wombat ecosystem and its partners. 

Specifically, as a D2I partner, Wombat Exchange is showcasing a Dragon Chain-native,  single-sided liquidity DEX covering full range of assets in DeFi called Capybara. Being an affiliate of Wombat Exchange, Capybara runs on the battle tested hyper-capital-efficient proprietary algorithm & utilizes WomPets, the sustainable Gamified Bribe Market 2.0.

About Dragonswap

Website | Twitter | Medium

Dragon Swap is an all-in-one DEX native to the Klaytn & Finschia integrated chain. Attracting over $6M in TVL in less than a month after launch, and ranking second in Klaytn’s DEX hierarchy, Dragon Swap has achieved impressive early results, as it has also reached $50M in cumulative trading volume.

This solidifies Dragonswap as a platform with a vision that goes beyond facilitating transactions, especially with implementing the KLAY burn initiative. The KLAY burn mechanism, which burns 30% of the protocol’s revenue, is in line with the vision of the D2I proposal and will serve as a direct link between the success of the protocol and the value of KLAY. Monthly burns can be found on the Dragonswap Medium

Dragonswap, in particular, has extensive experience in traditional finance, cryptocurrency exchanges, and blockchain projects, and will be able to bring many partners into the integrated chain ecosystem.

As the first beneficiaries of the D2I program, the three teams are expected to lay the groundwork for a more robust DeFi ecosystem as the program takes hold. We look forward to following the progress of these three teams and the future of a robust decentralized finance ecosystem centered on DApps that have value as real-world financial products.