Introducing Otter PAWs: OtterClam’s Bondable NFTs
Gather round the stream, Otters!
In our last article, we announced the OtterClam status achievement NFTs. Today we’ll cover:
- Bonding basics
- A brief (4,4) review
- Unique OtterClam NFT utility (the highlight!)
- Possible NFT use cases outside the OtterClam ecosystem
So find a cozy spot on the river bank, sit back, and enjoy learning about your new earning potential!
Otter Bites (TL;DR)
NFTs can be assigned to a bond for the entire vesting period and will grant an additional discount on the bond price:
- The First Unique 3: 2% additional discount
- Diamond-Hand Otter: 2% additional discount
- Stone-Hand Otter: 1% additional discount
- Furry-Hand Otter: 0.5% additional discount
Note: rates are subject to change before the NFT drop.
Additional NFT bonding info:
- Bonded NFTs will be locked with the bond
- After the bond is vested, you can reclaim the NFT
- A single NFT can be used on a bond, but you can use different NFTs on different bond types at the same time
- The NFT bonus will be seasonal, with the first season starting in January 2022 and ending in March 2022. At the end of the season, new NFTs will be distributed and the ones from previous seasons will be deactivated.
As for regular NFTs, you will be able to trade them on OpenSea (OtterClam fees will be applied).
How to use your Otter PAWs (Pieces of ArtWork)
You received a fantastic NFT from the Otter Kingdom, something that we call Otter PAWs. But did you know you can actually use it on the OtterClam website now to harvest even more CLAMs?
Turns out, these pieces of art aren’t just amazing and unique images that you can show off to your Otter friends. In this guide we will teach you how to use your PAWs in the OtterClam ecosystem and beyond. First, let’s review the basics of bonding and the new (4,4) system.
OtterClam offers an easy way for you to get discounted CLAMs by using bonds. When you bond, you will receive discounted sCLAM in exchange for the asset you bonded. The discount varies depending on the current treasury balance. For example, if the platform needs more MAI (the stable coin from Mai Finance) than FRAX, the discount on MAI will be bigger than the one for FRAX. Discounts are continuously updated to attract the assets that will balance the treasury in the most efficient way.
In the screenshot above, each bond has two numbers. The first is the bonding discount. The second is the 5-day ROI given by the APY (see paragraph below). You can also see that there are positive discounts on FRAX-CLAM2 and MAI-CLAM2 bonds. The FRAX and MAI bonds both have negative discounts, meaning that it’s more profitable for you to buy the CLAM directly from the market rather than bonding these assets.
Pro tip: always keep an eye on the bonding page to get the best discounts possible!
What is (4,4) again?
OtterClam is making it easy for fellow Otters to get staking rewards even from vesting CLAMs. Other OHM forks let users bond assets but release the vested token a little at a time. You can then harvest the rewards regularly and stake them to profit from the staking rewards. This is called (4,4).
Unlike other OHM forks, OtterClam’s enhanced (4,4) system allows you to gain staking rewards based on the entire bonded amount. You will not have to redeem the vested tokens and stake them to get extra rewards. On OtterClam, everything is automated.
To make this clear, the bond page now includes both the bond discount as well as the 5-day ROI staking reward. See below.
Using the screenshot above as an example, we can see that the MAI-CLAM2 bond will receive a 2.74% discount on the current market price of CLAM. Additionally, you would earn the 5-day ROI staking reward of 11.89%.
That means if you purchase 10 CLAMs at a discounted price using the example above, you will get 11.189 sCLAMs at the end of the bond’s vesting period.
Now let’s put your Otter PAWs to work!
When you buy a bond on OtterClam and you have a PAW in your possession, you will be able to attach the NFT to the bond, which will grant you an extra discount on the bond. The higher the classification of the NFT, the deeper the discount. Using the figures from the bond example above, a “Furry Hands” NFT would generate:
- A 2.74% discount applied at time of purchase
- A 0.5% extra discount provided by the NFT
- An 11.89% staking reward
Note: We are still developing NFT interaction with the OtterClam platform! Perks granted by the NFTs are subject to change. Stay tuned for more information.
The Otter Kingdom will be distributing NFTs on a regular basis. If you can’t get the best NFTs for this first drop, don’t be sad because you will get a chance to meet the requirements for the rarest ones next season. Indeed, The Diamond-Hand, Stone-Hand and Furry-Hand PAWs will grant a bonus only between January 2022 and March 2022. At the end of the season, a new set of NFTs with different requirements will be generated and distributed in order to replace the current ones. There will be a rotation every 3 months or so, which gives you a chance to grow your collection and get rare NFTs during future seasons.
From a river Otter to an OpenSea Otter
NFTs are pieces of digital art, hence the reason we’re calling the Otter NFTs PAWs. NFTs, or Non-Fungible Tokens are crypto assets that respect a given standard called ERC-721. You can find more NFT-related information here. The biggest platform to create, buy, sell and trade NFTs on Polygon is OpenSea. You will be able to find your Otter NFT on this platform once you have it in your wallet.
Your PAWs are NFTs, so they can be bought, sold, and transferred on OpenSea and in your wallet like any other NFT.
Buying more NFTs
If an Otter sells an OtterClam NFT, it’s your unique chance to acquire it. Most of the time, the seller will be able to set the following criteria for the auction:
- Start time
- End time
- Opening bid price
At this point, a regular auction happens where the highest bid wins. Once you buy an OtterClam NFT, you will be able to use it on the OtterClam platform to get additional discounts on your bonds, even if you were not qualified to initially receive NFTs. You can also purchase more NFTs in order to be able to get discounts on different bond types at the same time (remember that your NFT will be locked until the bond is fully vested).
Selling your NFT
You will be able to sell your NFT on OpenSea. But remember that the discount on bonds that the NFT provides is only for the wallet that owns the NFT. It’s also important to know that selling an OtterClam NFT will be subject to the following fees:
- A 2.5% fee on all OpenSea sales
- A 10% fee on all sales split by OtterClam as follows:
3% goes to the artist who designed the NFT
7% goes to the treasury
So if you sell an NFT for $100, you will get $87.50 in your wallet, $2.50 will go to OpenSea, $3 will go to the artist, and $7 will go to the treasury.
Transferring your NFTs
NFTs can also be transferred between accounts, meaning you will be able to use OpenSea to send your NFTs to another wallet address. This is particularly useful if you have multiple wallets or if you plan to use the NFT you received on your main wallet with another wallet. This can easily be done using the Transfer button on OpenSea:
As a side note, don’t forget that it’s holiday season soon, and a unique NFT from OtterClam could be the perfect gift for your beloved Otter friends. Buy an NFT and transfer it for free to a friend to celebrate the coming season!
Still have questions? Stop by our Discord. We are always happy to see new faces, and we’d love for you to join our community.
See you downstream Otters!