Klein Finance is a decentralized exchange that is used to provide liquidity and trade KCC20 tokens on the KuCoin Community Chain.
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The state of the crypto market in 2022
The crypto asset market has been on a downward trend since the start of 2022, with a total market cap of $1.81 trillion, 38% off its 2021 peak of $2.92 trillion. The total value of the on-chain ecosystem is also reduced. According to the Defipulse data, the total value of the locked and encrypted assets (TVL) on the largest on-chain ecosystem Ethereum is $76.4 billion, which is a 43% decrease compared to the highest value of $110 billion in 2021.
UNI, the native token of popular decentralized exchange (DEX) Uniswap, has fallen more than 8.7% in the past day and is now trading just above $5, according to CoinMarketCap. The token is the 22nd largest cryptocurrency with a market cap of $3.7 billion. UNI has fallen more than 88% from its all-time high of $44.97 in May 2021.
Chainlink’s LINK token is also treading water, down more than 8.3% in the past 24 hours. LINK is the currency that users use to run their prophets on the Chainlink platform. A predictor for important data Bridges the chain and events on it. LINK is now changing hands at $6.54, down more than 87% from its all-time high of $52.88 in May 2021.
What caused the DeFi token crash?
The main driver behind today’s bearish price action is likely to be the sudden drop in the total lock-up value (TVL) of different DeFi protocols due to the recent price collapse of Ethereum. Ethereum, the second-largest cryptocurrency by market cap that underpins much of the DeFi ecosystem, fell more than 6% on the day and nearly 5% over the past seven days. Crypto asset users generally feel that “the market is bear”, and how to reduce asset shrinkage in the downward risk has become the demand of many people.
What is a stablecoin?
Even as the crypto market has plummeted, the market value of stablecoins, a token whose value is tied to another asset, has risen from 9.35% to nearly 14% in the past two months. Most stablecoins are pegged to the U.S. dollar. Normally, 1 stablecoin = 1 USD. Stablesoins reduce portfolio volatility and protect against inflation, helping us protect our portfolios from losing too much money.
Since the stablecoin protects our assets from violent market fluctuations, how can we make progress in stability? You want to preserve your asset, but you also want it to generate income. Here we have to mention stablecoin trading platform.
Stablecoin trading platform — KleinFinance
KuCoin Community Chain (KCC) under KuCoin Exchange is a decentralized public Chain compatible with EVM and high performance, and Klein Finance,( https://klein.finance/ ) a stablecoin trading platform, was born on this public Chain. The platform is designed to realize stable currency trading is extremely efficient, low risk, to provide supplementary fees for liquidity providers, and let us in a secure and stable environment in the chain of trading and bets are rewarded, the trading mode for the mixed liquid pool, to provide across the market mechanism to create a stable currency, can satisfy multiple stable currency to a stable currency, Multiple unstable coins requirements for multiple unstable tokens.
Klein Finance provides liquidity pools to markets and rewards users (also known as liquidity providers) for providing liquidity. At the same time, Klein Finance charges a small fee for each transaction and rewards a portion of the fee to all liquidity providers.
As a liquidity provider, we can not only earn certain transaction commission by pledging stable currency on Klein Finance, but also obtain Klein token KEN. It can be used to make up for the loss caused by slippage in the transaction. It can also be used to obtain veKEN by pledging KEN to improve the value of KEN. Holders of a certain number of veKEN can participate in KleinFinance’S DAO organization and management, exercise the rights of proposal, voting and so on. This mechanism makes Klein Finance’s ecological environment more healthy and stable.
Conclusion
In the bull market, cryptocurrencies did allow us to make significant gains and help us hedge against a lot of uncertainty, but now it is difficult to sustain cryptocurrencies amid the global plunge in risk assets. So, in this bear market we how to learn to survive is worth pondering the problem. Perhaps, Klein Finance is a good choice. The revenue model of stable currency transaction can keep the existing assets stable and increase in value. When the next bull market comes, we can start again and dig gold in the bull market.
