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Why CLAM is a Great Buy in a Down Market


Gather 'round the lake, Otters!

It’s Ogmi again, your humble ambassador from the Otter Kingdom. Today I would like to submit for your consideration a current assessment of the currency of our realm - CLAM. Specifically, how CLAM might benefit you greatly in a market that is, perhaps, not so great right now.

The price of CLAM as of this writing is $4.51 with a market cap of $2.1M. Now the interesting thing about CLAM is that it is a treasury-backed token, with a backing price of $1 (technically, 1 MAI).

What does this mean, you ask? Well, OtterClam holds a treasury containing a basket of different crypto assets, which can be contributed to via mechanisms such as bonding in return for discounted CLAM (we will elaborate on this in a future article). The DAO just passed a vote to move the treasury’s stablecoins into stablecoin LPs, so in addition to benefiting from “new money,” the treasury also generates its own income.

The treasury supports the financial directives set forth by the community. Its primary purpose, however, is to provide CLAM with intrinsic value. The OtterClam protocol includes a buyback mechanism if CLAM ever reaches $1.  If that were to happen, the protocol will use treasury funds to begin buying CLAM and burning it, raising the price above $1. This is what is meant when it is said that CLAM is “backed” at $1 (not to be confused with being “pegged” at $1, like a stablecoin. CLAM can be and is currently worth more than one dollar). 

There are approximately 500,000 CLAM in circulation. With a treasury currently valued at around $2.7M, that leaves plenty of financial buffer for OtterClam to execute the buyback procedure, should the need arise. 

Now, you may be thinking to yourself, “it’s great that CLAM shouldn’t go below $1, but it’s worth almost $5 right now. What’s preventing me from losing the other 80% of my investment?” 

Great question!

In my last article, I briefly covered all the amazing developments that are coming down the pipeline for the Otter Kingdom. These include:

  • Building out our plot in the Sandbox metaverse
  • Dropping our genesis collection of breedable NFTs very soon (check out the preview here
  • Creating metaverse games
  • Forming major partnerships such as our partnership with QiDAO and Huobi Wallet 

For the latest updates on these developments, I encourage you to join our Discord server. Our Otters are working around the clock, and our international community is cohesive, vibrant, and driven. Our marketing campaign is only just beginning. There is much in OtterClam’s future to be excited about, which will likely have positive impacts on the price.

From a purely “here and now” perspective, however, there are two aspects of the protocol that I want to highlight - our token rebasing (Otter Pond) and our PEARL chests (Otter Lake). Every 8 hours, the circulating supply increases and those that have their CLAMs staked in the protocol will receive a portion of that new CLAM supply. The staking APY is currently 338%. This is advantageous to the investor in uncertain markets, where negative price action is common. While many coins are falling in price during a major market washout, the quantity of your CLAM continues to grow at a rapid pace. Down markets are typically thought of as great opportunities to accumulate; CLAM automatically accumulates for you through staking. 

The second cause for some degree of peace of mind in a bloody market is our PEARL chests. To begin with, we should answer a more rudimentary question: what exactly is PEARL?

Staked CLAM can be wrapped into PEARL. The yield is the same as staking CLAM, but instead of receiving more CLAM, the price of your PEARL increases based on an index multiplier. This is helpful for residents of certain nations, where receiving additional crypto is considered a taxable event. PEARL can be unwrapped at any time for the amount of CLAM that you would have received if you were staking CLAM for the entire time.

This is helpful for some, but the real advantages come when locking these PEARLs into chests. These are time-locked smart contracts, ranging from 14 days to 180 days. This entitles you not only to the default staking APY that comes with owning PEARL, but an additional yield by the PEARL themselves compounding from the PEARL chest. This APY stacking is truly massive - the 180 day chest currently yields over 313,322% APY! This is the APY that you would receive if your newly-yielded PEARL was auto-compounded. 

PEARL rewards from chests do not auto compound by default, giving our Otters the opportunity to choose what to do with their rewards.. That is to say, that although your initial PEARLs are locked in a chest for the specified timeframe, you'll receive your PEARL yield every 8 hours to use as passive income or relock into a new chest to compound your APY.

For an in-depth description of the difference between staking in Otter Pond and locking up in Otter Lake, read this Medium article.

Locking PEARLs in chests not only provides huge yields to holders, but also a greater stability to the whole protocol. Since a significant portion of the market cap is locked for a period of time, a certain degree of price protection is created. When market conditions turn sour, many of our Otters are still HODLing and receiving those juicy rewards no matter what. You can see the dollar value locked in our chests here and do the math for yourself to get an idea of how that benefits price stability.

"Wait a minute," you might think, "you're telling me that I can get insane APY but have to lock up my capital? This sounds like a rug pull waiting to happen!" 

Have I mentioned that we've been audited by SlowMist, a renowned audit firm? You can find our certificate here. Our devs are top notch and fully devoted to seeing OtterClam succeed.

So let's review…

You have the opportunity to be part of a low-cap investment that is backed at $1 thanks to the treasury’s buyback procedure, yielding crazy APY, with very exciting developments in the near future that are likely to have positive price impacts (with marketing only just beginning to ramp up), AND a certain level of price protection with so many PEARLs locked up in chests.

In a market that is proving to be quite fearful lately, these sound like pretty reassuring and attractive traits to me. What about you?

Until next time,

OGMI



Website: otterclam.finance

Discord: discord.gg/gRJDX5NXFA

Twitter: twitter.com/otterclam

Reddit: www.reddit.com/r/OtterClam/




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Kairos_OC
Kairos_OC

Content Lead @ OtterClam Finance


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News from Otter Kingdom

Your one stop shop for all things OtterClam and Otter Kingdom. Ogmi, the Otter Kingdom's dedicated Otter herald, brings you all the news and developments from a community member's perspective, with all the alpha you might expect from an insider. We're glad to have you in the raft and hope you enjoy learning about our community. See you downstream, fellow Otters!

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