5 minutes to understand BadgerDAO’s upcoming “stable coin” CLAWS

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This is a kind of income dollar backed by BTC and providing relatively stable value.

Written by: LeftOfCenter

Long before DIGG went online, the BadgerDAO community, a decentralized organization focused on bringing Bitcoin to DeFi, circulated the legend that it was going to launch a stable currency, and received enthusiastic responses from community members. It was still not sure whether it was really going to be launched. The project has a lifelike name “CLAWS”. Since then, members of the BadgerDAO community have quietly changed from “Wen $DIGG?” to “Wen $DIGG?”

Today, this stable coin CLAWS has become a reality from a meme stalk. The BadgerDAO community officially announced today that it will launch a USD synthetic token “CLAWS” in the near future, and wrote an article detailing what “CLAWS” is, how it works, and its purpose .

BadgerDAO’s goal is to become a bridge connecting Bitcoin and Ethereum, bringing Bitcoin into DeFi, and realizing this vision by creating DIGG that anchors the price of Bitcoin based on the Rebase mechanism. Now, Badger’s launch of this CLAWS can further promote the existence of Bitcoin in DeFi, which is a kind of income dollar backed by BTC and providing relatively stable value.

What is CLAWS?

In fact, CLAWS is more accurate in terms of earnings in dollars rather than stable currencies.

The UMA agreement launched a USD structured product in July 2020. This is a mortgage asset with an exact expiry date. Once it expires, you can redeem a mortgage asset worth $1 on the UMA agreement. The price before expiry It will be determined by the market. Generally speaking, as the expiration time gets closer, the price gets closer to 1 USD.

As a mortgage asset, users need to mortgage the asset at a certain loan value to LTV ratio, and then mint to generate revenue dollars. Specific to the use case of BadgerDAO, it can support two kinds of asset minting income USD tokens, namely bBadger and wBTC/ETH SLP voucher minting to generate bCLAWS and sCLAWS, which means that a variety of CLAWS income USD will be generated, with different maturity dates The CLAWS is a kind of income dollar, and has its own value expression form-token. At present, the result of preliminary discussion in the community is that the expiration date of CLAWS is 60 days as an incremental unit.

There are two ways to obtain CLAWS tokens, one is to pledge bBadger and wBTC/ETH SLP generation, and the other is to buy directly on the market. However, investors need to pay attention to the premium and expiration date when buying CLAWS. All CLAWS tokens have different expiration dates. Before expiration, the price of CLAWS is determined by the market. Once it expires, the value will be only $1.

What can CLAWS be used for?

One of the greatest benefits of DeFi’s composability is that it can earn a variety of different forms of income based on the same underlying asset, thereby maximizing potential returns.

For CLAWS, after users mint and generate CLAWS tokens, they can deposit them in the Sushiswap liquidity pool, and obtain CLAWS-SLP voucher pledged to the corresponding Badger Sett machine gun pool, and obtain a variety of benefits, including UMA, xSushi, bDIGG and bBadger.

This means that on the basis of the original income, BadgerDAO has added other sources of income.

In the first layer of Sett, there are already multiple sources of income, including depositing in Badger and staking bBadger to obtain automatic composite BADGER and DIGG rewards, and staking SLP to obtain bBADGER, bDIGG, xSUSHI and transaction fees. Once the income of USD CLAWS is added, users will add another source of income on the original basis, and they can mortgage the above bBADGER and SLP to cast CLAWS, earn additional bBADGER, bDIGG, UMA, xSUSHI and more transaction fees. Overall, the CLAWS Sett machine gun pool has nearly 10 sources of income, which can be said to be a basket of passive income.

If you don’t want to pledge to earn additional income, you can also sell CLAWS, and unlock part of the liquidity locked in Badger or SLP while maintaining basic income. For example, users can use LP tokens to mint CLAWS and sell them in the Sushiswap fund pool in exchange for USDC. This will provide users with more liquidity and opportunities for income growth. They only need to repay the CLAWS redemption collateral before the maturity date. Considering the current Badger market value of 139 million US dollars and the wBTC/ETH SLP market value of 309 million US dollars, this will greatly unlock liquidity.

Short-term roadmap

Since the early smart cold start (using retrospective airdrops) brought a large number of heavy DeFi users into the Badger DAO community, this laid a solid community foundation for the Badger DAO community. In fact, Badger DAO has a strong community atmosphere, with many ideas and ideas. Not only that, but the step-by-step Badger DAO has a solid and steady pace of delivery. The following is the recent roadmap of Badger DAO.

In order to solve the costly gas fee, BadgerDAO is currently cooperating with StarkWare, a zero-knowledge proof research and development organization, to develop a ZK-Rollup AMM mechanism two-tier exchange that does not require gas fees. BTCX tokens will be traded at that time.

Provide insurance for depositors and develop strategic cooperation with other projects.

BadgerDAO and iearnfinance are developing a WBTC machine gun pool Spadavault, which is expected to become the largest machine gun pool and the highest annual machine gun pool of all pools.

BadgerDAO is integrating Chainlink oracles to feed DIGG/BTC. This integration will provide BadgerDAO with a more reliable and powerful oracle infrastructure.

Further reading

Three minutes to learn about the outstanding UMA revenue USD Yield Dollar token design
https://www.chainnews.com/articles/007400186231.htm

Is the lock-up volume among the top ten just the beginning of the story? A comprehensive understanding of Badger DAO’s core product DIGG
https://www.chainnews.com/articles/493153054731.htm

Reference link

https://badgerdao.medium.com/claws-explained-scratching-the-surface-of-sett-vault-assets-2144fdbdf78a

https://badger.substack.com/p/badger-dao-weekly-newsletter-11

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