KLAYswap Crypto Exchange Review: Is This Klaytn DEX Worth Your Tokens?

If you're looking for a decentralized exchange that works smoothly within the Klaytn ecosystem, KLAYswap might catch your eye. But here’s the real question: is it just another small DEX trying to hang on, or does it actually offer something valuable in 2025? After digging into its features, fees, user complaints, and how it stacks up against bigger players, the answer isn’t simple. KLAYswap isn’t Uniswap. It doesn’t have millions in daily volume or a polished interface. But for users already in the Klaytn world-especially those in South Korea and Southeast Asia-it’s one of the few tools that lets you swap, provide liquidity, and earn KSP tokens without leaving the chain.

What Exactly Is KLAYswap?

KLAYswap is a decentralized exchange built on the Klaytn blockchain. It launched in 2020 by Ozys Pte Ltd, a Singapore-based company. Unlike centralized exchanges like Binance or Coinbase, KLAYswap doesn’t hold your crypto. You connect your wallet-Kaikas, MetaMask, or others-and trade directly from your account using smart contracts. All swaps happen on-chain, meaning no middleman, no KYC, and no account freezes.

It runs on an Automated Market Maker (AMM) model, which means prices are set by liquidity pools, not order books. You swap KLAY for USDT, or BORA for ORC, and the price adjusts automatically based on how much of each token is in the pool. This system works well for small trades and avoids the slippage issues common on low-volume DEXs.

One standout feature? Cross-chain liquidity. Through the Orbit Bridge, you can bring ETH, USDT, or other tokens from Ethereum into KLAYswap and swap them for Klaytn-native assets. This makes it one of the few DEXs that bridges two major networks without relying on third-party bridges that often get hacked.

How Does Trading Work on KLAYswap?

Trading on KLAYswap is straightforward. You pick a pair-like KLAY/OXRP or USDT/BORA-connect your wallet, enter the amount you want to swap, and click “Swap.” The platform charges a flat 0.30% fee on every trade. That’s the same as Uniswap. The fee doesn’t change based on whether you’re the maker or taker, and it all goes straight to liquidity providers.

As of late 2023, the most traded pair was KLAY/OXRP, hitting over $55,000 in 24-hour volume. Total daily volume hovered around $157,000, which is tiny compared to top DEXs. Uniswap does over $1 billion a day. But within the Klaytn ecosystem, KLAYswap handles about 15% of all DeFi trading volume, making it the second-largest DEX on the network after Klayswap Classic.

The platform supports 28 tokens and 64 trading pairs. That’s decent for a niche exchange but far behind giants like SushiSwap or PancakeSwap, which list hundreds. If you’re looking for obscure memecoins or new DeFi tokens, you’ll likely need to go elsewhere.

Three Ways to Deposit: Single, Pair, and Plus

KLAYswap’s deposit system is where it gets interesting. You’re not just limited to swapping-you can become a liquidity provider. And there are three ways to do it:

• Single Side Deposit: You deposit just one token-like KLAY or USDT-and the system automatically converts half of it into the paired asset to fill the pool. This cuts down on impermanent loss risk because you’re not manually balancing two tokens. It’s perfect for beginners.
• Pair Deposit: You manually add equal value of two tokens (say, 100 KLAY and 50 USDT) to create a liquidity pool. You earn fees from every trade in that pool, but you’re exposed to impermanent loss if one token’s price swings hard.
• Plus Deposit: This is KLAYswap’s signature feature. You deposit one asset, and the smart contract automatically swaps and deposits it into a liquidity pool with the optimal ratio. It’s designed to maximize your APY. But here’s the catch: if the pool’s utilization rate goes above 85%, you can’t withdraw your funds until the ratio drops. During the May 2023 market crash, multiple users reported being locked out for days. It’s powerful, but risky.

The KSP Token: Governance and Incentives

KLAYswap’s native token, KSP, is the backbone of the platform. It’s not just a reward-it’s the key to everything.

• You need KSP to create new liquidity pools. Each pool requires a small fee paid in KSP.
• KSP holders vote on protocol changes: fee structures, new token listings, mining rewards.
• Liquidity providers earn KSP as additional rewards on top of trading fees.

As of mid-2023, KSP was trading around $0.1157 with a market cap of $52 million. Some analysts predict it could hit $185 by 2025, but those are wild guesses. Cryptocurrency price forecasts are speculative at best. What’s real is that KSP gives users skin in the game. If you’re serious about earning from liquidity provision, holding KSP isn’t optional-it’s essential.

Performance and Security

KLAYswap has been audited by Haechi Theori, a known blockchain security firm. But the audit report isn’t public. That’s a red flag for some. Transparency matters. If you’re locking up thousands in liquidity, you want to see exactly what the auditors found.

The platform runs on Klaytn, a blockchain designed for speed and low fees. Transactions settle in under 1 second, and gas costs are pennies. That’s a big win over Ethereum, where fees can spike to $50 during congestion.

Still, users report occasional transaction failures during peak times. The fix? Increase your gas allowance. Most issues aren’t with KLAYswap itself-they’re with network congestion or wallet settings.

The average bid-ask spread is 0.645%. That’s better than many small DEXs but worse than centralized exchanges, which often stay under 0.2%. For large trades, slippage can be a problem. Stick to smaller amounts unless you’re comfortable with price impact.

User Experience: Simple, But Not Polished

The interface is clean but basic. It doesn’t feel as slick as Uniswap or PancakeSwap. Buttons are functional, not flashy. Charts are minimal. There’s no advanced trading view, no limit orders, no stop-losses.

Beginners can get started in 3-5 hours. The real hurdle is understanding the plus deposit mechanism and how impermanent loss works. The documentation is decent but lacks video tutorials or step-by-step guides. If you’re new to DeFi, you’ll need to watch YouTube videos or join their Telegram group for help.

User reviews on Trustpilot average 3.8/5. Common praises: low fees, good integration with Klaytn, easy single-side deposits. Common complaints: confusing UI, slow support, withdrawal issues during volatility.

The KLAYswap Telegram and Discord communities have about 15,000 members. Response times vary: 2 hours during weekdays, up to 24+ hours on weekends. If you’re stuck, don’t expect instant help.

Why KLAYswap Discontinued Leverage Trading

In early 2025, KLAYswap shut down its leverage trading feature. That’s a major shift. Leverage lets you trade with borrowed funds-think 5x or 10x positions. It’s popular on platforms like dYdX and Bybit.

Why kill it? Regulatory pressure. South Korea and other Asian markets have cracked down on crypto derivatives. KLAYswap’s parent company, Ozys Pte Ltd, is based in Singapore, where regulators are watching closely. Dropping leverage wasn’t a failure-it was a smart move to stay compliant.

For traders who loved leverage, this hurts. But for long-term users focused on liquidity provision and passive income, it’s a net positive. The platform is now laser-focused on its core strength: being a safe, reliable DEX.

Who Is KLAYswap For?

This isn’t for everyone. If you want the biggest token selection, the fastest support, or the most advanced trading tools, look elsewhere.

But if you’re:

• Already using Klaytn wallets like Kaikas
• Looking to earn passive income through liquidity mining
• Interested in cross-chain swaps between Ethereum and Klaytn
• Willing to hold KSP and participate in governance

…then KLAYswap is one of the best options in its niche. It’s not flashy, but it’s functional, secure, and deeply integrated into a growing blockchain ecosystem.

Final Verdict: Solid Niche Player, Not a Giant

KLAYswap doesn’t compete with Uniswap or SushiSwap. It doesn’t need to. It competes with other Klaytn-native tools-and in that space, it’s a top contender.

Its strengths are clear: cross-chain liquidity, low fees, single-side deposits, and a strong tokenomics model around KSP. Its weaknesses? Limited token list, clunky UI, and withdrawal risks with plus deposit during volatility.

If you’re in South Korea or Southeast Asia, and you’re already in the Klaytn ecosystem, KLAYswap is worth trying. Start small. Use single-side deposits. Earn KSP. Learn how liquidity pools work. Then decide if you want to go deeper.

It’s not the future of DeFi. But for now, it’s a reliable part of it.