Introducing Clam Pond and Pearl Bank

4 min readJul 21, 2022

Gather around the stream, Otters!

OtterClam has rolled out one of the biggest changes in its DeFi history, and the Great Migration is underway!

This article serves as an explanatory publication to better convey these changes, and what rewards are in store for old and new Otters alike!

Topics covered in this article:

• Our new staking pools: Clam Pond & Pearl Bank

• How rewards are offered in each pool

• Why these changes are beneficial

So slide on into your favorite burrow, and let’s get into the new staking system!

Otter Bites (TL;DR)

Otters now have access to two brand new reward staking pools. Both pools boast similar APY/APRs, yet distribute rewards in different ways.

Quick Facts about Clam Pond:

Stakers in Clam Pond receive auto-compounding CLAM. The rewarded CLAM comes from the open market, purchased with treasury revenue. Rewards are received at the end of each reward timer (every 24 hours).
Because Clam Pond rewards are received in “bought back” CLAM, Clam Pond is continuously reducing the circulating supply of CLAM on the open market. Not only will this enable Clam Pond stakers to stockpile more CLAM, it should also prove beneficial to the overall valuation of CLAM.
There’s a 1% early withdrawal fee within 30 days of staking. The timer will reset if you add more CLAM into the pool.

Visit the Clam Pond here: https://ottopia.app/treasury/pond

Quick Facts About Pearl Bank

Aside from the reward mechanics and auto compounding in Clam Pond, there are few differences between Clam Pond and Pearl Bank.

Like Clam Pond, token locking is not required in Pearl Bank.
Pearl Bank is not an auto-compounding pool, the rewards from this pool are claimable as USD+ (USD+ is an interest-bearing stablecoin fully collateralized by $USDC, $DAI, as well as $USDT).

Find out more about USD+ by visiting their website.

Pearl Bank offers a very similar APY to that of Clam Pond if you were to reinvest all of your USD+ rewards into Pearl Bank over the course of a year.
Both pools have an early withdrawal fee of 1% within 30 days of staking. This timer will reset if you add more CLAM into the pool.

Visit the Pearl Bank here: https://ottopia.app/treasury/bank

Finally, with PEARL V2 being set 1:1 with CLAM, we have removed the index, because it is no longer needed. You can still unwrap your existing PEARL V1 tokens for the index-adjusted amount of CLAMs, of course.

Which pool do you want to swim in? Choose wisely!

Why did we update the staking system?

OtterClam has made great strides in 2022 to achieve an attractive, yet fully sustainable revenue model. Such a model would position the protocol to not just survive, but thrive under any market conditions, and not be dependent on outside (and unreliable) factors such as manufactured hype, high APYs, etc. Thanks to our robust treasury and the cumulative brainpower of OtterDAO, we believe that such a revenue model has finally been achieved.

OtterClam now rewards investors based on real performance (the treasury’s actual revenue) instead of more tenuous methods (newly minted CLAMs). The protocol can maintain this indefinitely and with no negative impact to protocol health.

In addition, with almost no new CLAMs being minted (and 10% of our Ottopia CLAM revenue still being burned), CLAM has the potential to become a deflationary token. The only situation where new CLAMs are minted is through bonds, and then only when CLAM is above a certain price point. Thanks to our current burn mechanisms, there will likely be fewer CLAMs at the end of each day then when that day started. As more Ottopia features are rolled out (like the upcoming adventure game slated for release before the end of the month), expect those burns to ramp up, too.

Consider this:

• CLAM’s current market cap is $1.2M+

• The treasury assets are valued at $2.1M

This means that CLAM is trading at a 43% discount in relation to its treasury composition, and it was an inflationary rebase token.

Now, it’s likely deflationary via burns, with buybacks still ongoing from Clam Pond rewards, and new treasury assets added via reinvestment and future bonding. APYs are still competitive and are now 100% sustainable, which is extremely rare in the world of DeFi.

If all of this sounds good, but you’re not sure where to start, no worries, we’ve got you! The following steps will make sure you get your CLAMs earning rewards on the new site in no time:

In the Otterclam Site: (https://app.otterclam.finance/#/pearl-chests?tab=redeem)