Protocol for decentralized finance Kokoa has received a round of venture capital funding to develop DeFi features on Klaytn. Kakao, South Korea’s largest messaging app, launched the Klaytn blockchain.
Kokoa Finance announced on September 30 that it had raised $2.3 million in a seed investment round led by Silicon Valley blockchain venture firm Hashed. Sky Vision Capital, a41 Ventures, and a number of individual angels were among the other investors.
The funds will be used by Kokoa Finance to develop the Kokoa Stable Dollar (KSD) stablecoin, which will be used to accelerate DeFi adoption on Klaytn.
Klaytn was launched in 2019 with a focus on the South Korean market, owing to its integration with KakaoTalk and the Klip wallet. Korea’s market capitalization increased to $4 billion as a result of adoption and organic growth.
Dai is getting better.
The Kokoa Stable Dollar will function similarly to MakerDAO’s Dai, which uses collateralized vaults to enable stablecoin minting and lending.
It will expand on the MakerDAO model by generating yields in Klaytn’s liquidity farms through collateralized debt positions (CDPs).
“With this structure, zero interest rates can be charged for borrowing KSD, making it comparable to a “advance” on future yield.”
After the KSD ecosystem is launched, the Kokoa team will implement DAO governance and add features to help it grow. Margin trading, leveraged yield farming, a synthetic asset protocol, and a stable swap platform will be among them.
Jwon Do, the founder of Kokoa Finance, stated that DeFi on Klaytn was still in its early stages, adding that “by launching Kokoa and KSD first, we expect to start the flywheel of DeFi adoption on this chain and lay the carpet for new builders and users.”
The release, however, made no mention of a specific launch date.
The Klaytn blockchain experienced a minor outage in March, but normal operations were quickly restored.
KLAY price change
Since August, the blockchain’s native KLAY token has been declining and has returned to support at around one dollar.
There has been little movement in the last 24 hours, and KLAY has dropped 30% in the last month. According to CoinGecko, it is currently down 75% from its all-time high of $4.34 on March 30. The launch of DeFi farming incentives on the blockchain may well reverse this trend for KLAY.
There are currently 2.5 billion tokens in circulation, giving it a $2.7 billion market cap.