Yesterday, we had our first sucessful vote about the DEF portfolio allocation, which was submitted to our precious community, Adamants. Today, we will explain what CLAW is and how it will make adamantium sustainable.
First, a little reminder about yield farming. Yield Farming is the process of using decentralized finance (DeFi) to maximize returns. Users can lend or borrow crypto on a DeFi platform and earn cryptocurrency in return for taking risks on the market.
There are different types of yield farming:
- Lending: Token holders can lend crypto to borrowers through a smart contract and earn yield from interest paid on the loan.
- Borrowing: Farmers can use one token as collateral and receive a loan for another. Users can then accumulate a yield with the borrowed coins.
- Staking: Staking LP and/or single tokens earned from supplying a DEX with liquidity. This allows users to earn yield twice, as they are paid for supplying liquidity in LP tokens which they can then stake to earn more yield.
While concepts like Degenbox on MIM/UST, arbitrage opportunities, leveraged yield farming may be common concepts to most crypto natives, many people still do not use them. The reason for this can be boiled down to three main factors:
- Lack of information
- Turned off by “extra steps”
- Too little capital to bother
Risk-reward factor is something that many crypto users lack the technical knowledge to manage.
Have you ever wanted to try out complex farming or other investment strategies, but just have no clue on whether it’ll be worth it or even how to implement it?
This is what the CLAW is made for, it stands for Crosschain Liquidity Acquisition Wagon.
Crosschain: Being able to transfer assets between chains greatly increases the value of these assets because they can be used in more scenarios and provide more yield.
Liquidity:The backbone of the crypto space, it’s what everything is based on, let’s use Anchor as an example. If you stake $1000 for 20% revenue per year, you will earn $200 per year. Whereas if you stake $1M, you will earn $200,000 per year. The more liquidity you own, the lower the risk is.
Leading protocols can aggregate various opportunities for investors to earn yield by providing liquidity. In return, protocols can pay investors to help them increase the liquidity of their own tokens. By using this strategy, acquisition of liquidity and its efficiency is increased by tenfold and therefore creates a diversified revenue base to flow into the DEF in order to support the price of $ADM.
As you know, we will split our DEF into 3 parts:
- Farming : This can include utilizing stable coins or we could us other farms which would increase our yield, but would also carry more risk in return.
- Venture Capital / Incubation : This means to invest in a project that’s still in its early stages, if we believe that their team/protocol’s concept will succeed. This has the potential to grow our DEF wallet exponentially.
- Token acquisition : This portion can be used to acquire governance or gas type tokens such as $auto, $bnb, $vlx or $luna.
Wagon: This term is used to symbolize our “wagons” full of liquidity. Using a portion of all trading taxes, we will reinvest in other protocols to maximize efficiency & our overall returns, which will in turn make our protocol even more sustainable. We will utilize our expertise and power we have as a protocol to help smaller projects grow exponentially.
By helping these projects grow, our DEF will grow alongside our prospects. We can also take advantage of the product the protocol is offering if they’d like to partner with us. As you all know, none of this would be possible without you, our community. Together, we are stronger than ever before
The CLAW is a revolution for users investing in rebase tokens. We can turn this high APY (which would’ve inevitably led to the fall of the price, due to inflation) into a sustainable project that will be supported by the CLAW’s performance and automatic buybacks.
The CLAW is also a revolution for upcoming protocols who need extra funding as we have a treasury allocation especially to fund projects we believe in.
There several key reasons why we believe the time is right for this approach:
- 1. The success of yield optimizers shows how eager users are to deposit their money in protocols that works for them. As the crypto space becomes bearish, it is likely that more and more people will be looking for delta neutral or at least automatic yield.
- 2. This gives our users the ability to engage in these protocols indirectly without having to manage their investments. Basically, you buy $ADM, it rebases by 1.32% daily, and the performance from the CLAW supports the price of the token, while experienced farmers and our research team will do the work for you.
- 3. There’s a reason why hedge funds are so popular with even savvy professionals on Wall Street. Being able to park your money somewhere and generate yield while not possessing the technical knowledge, lacking access to these opportunities or having to press multiple buttons a day to manage your assets daily. This allows your capital to be managed by professionals that do have that expertise, access and systems and can free up your time substantially. This is what the CLAW is made for.
Furthermore, the performance from CLAW will be used to buyback $ADM to help support the price and reach a sustainable model even while printing 1.32% daily for all our users. This allows $ADM to be a token that represents the hedge fund of the crypto world. Many of the Titano forks have come (and unfortunately some already gone) but few actually have an underlying asset base or revenue stream to support the token price.
We announced yesterday that the APY was dropping as a result of a failure by the audit to pick up a mistake in the logic for rebases. Therefore burning tokens reduced the daily return from 1.92% to 1.32%.
As mentioned we do believe this is a positive change as it makes the project more sustainable and therefore is in the interest of our holders. We aim to grow the DEF to be able to sustain the increase in tokens in circulation and crucially grow the financial worth of your holdings rather than just the number of tokens you hold in your wallets.
We also fundamentally disagree with the focus on APY as an annual metric when the Defi space is the fastest moving ecosystem. That’s why the key metric in our eyes is the daily APY of 1.32%.
The DEF will provide us with the ability to control that price and therefore hopefully have a steadily increasing price that is actually attainable through the underlying value of the project. We believe that in the end, this will put us in prime position to be one of the projects that actually lasts long enough to be able to talk in annual terms when it comes to APYs and one where the return will be in actual financial value rather than number of tokens you hold in your wallet.
While many may turn away from basic rebase tokens, we, at Adamantium, always will innovate and bring new solutions for you guys, and the CLAW is the first of many.
We believe that the revenue that we can derive from this multi-faceted approach will allow us to grow the project by generating enough revenue to support a steadily growing price, which we appreciate is the key metric that matters to the community.
It was Thebakedbot for the today’s AdamanTimes and the CLAW strategy.