BadgerDAO Launches CLAWS, a Stablecoin With Expiration Date

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Formally launched on 22 February, BadgerDAO described CLAWS as extra of a “yield greenback” than a stablecoin. Yield {dollars} are collateralized belongings with an expiration date — as soon as the token expires it may be redeemed on the protocol for $1 price of its collateral.

CLAWS are minted when a person places up collateral at a sure loan-to-value (LTV) ratio. However, in contrast to different yield {dollars}, two collateral belongings can be utilized to mint CLAWS — bBadger and wBTC/ETH SLP tokens, creating bCLAWS and sCLAWS, respectively.

In line with BadgerDAO, the protocol may introduce a subset of tokens with quite a lot of expiration dates for every kind of CLAWS. Preliminary discussions concerning the matters got here up with expiration dates in 60-day increments, however the firm is but to make a closing determination on the difficulty.

The aim of CLAWS is to allow customers to earn a number of types of yield with the identical base asset. Newly minted CLAWS tokens could be deposited right into a Sushiswap Liquidity Pool, the place they are going to earn CLAWS-SLP tokens in return. The CLAWS-SLP tokens can then be staked in a devoted Badger Sett vault, enabling customers to earn extra rewards within the type of UMA, xSushi, bDIGG, and bBadger.

“With all the added incentives, CLAWS Sett vaults are going to vary the yield farming sport by offering a secure asset with a number of yield streams. Such a worthwhile base makes CLAWS an essential primitive asset within the ever-evolving house of DeFi,” the corporate mentioned within the announcement.

There are two methods to get ahold of CLAWS tokens — utilizing collateral belongings to mint them or buying them on the open market. Nevertheless, BadgerDAO warned its customers to watch out for value premiums, as all variations of CLAWS tokens expire at $1. There will likely be no airdrop of CLAWS tokens, with the whole token provide created solely by customers opening CDP positions on CLAWS.

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