KLAYswap is an on-chain instant swap protocol that operates with an on-chain liquidity pool. Liquidity is guaranteed by automated market-making (AMM) mechanisms. It allows anyone with KLAY or KCT-type token cryptocurrency to become a liquidity provider and earn income from transaction fee commissions. KLAYswap enables the transfer of Ethereum-based tokens (ETH, ORC, DAI, WBTC) to the Klaytn ecosystem through Orbit Bridge, a transparent IBC bridge built on Orbit Chain. This offers yield farming with previously unconnected asset pairings in the decentralized world.

The governance token of KLAYswap is KSP. Token holders have the responsibility and authority to determine governance agendas and lead the development of the service. They participate in deciding fees, mining distribution, and contracts. KSP is also used for creating new liquidity pools. A pool contract creation fee in KSP is required when a new KCT token pair pool is created on KLAYswap.

KSP tokens can be acquired through liquidity mining, which takes place in each Genesis block. They are distributed as compensation to KLAYswap liquidity providers based on the proportion of liquidity they provide to the pool total.