Introducing OtterClam Finance: A Reserve Currency Memecoin
Disclaimer: This protocol, not unlike other early DeFi projects, is very experimental and full of risk. The protocol is forked from the audited OlympusDAO contracts. We plan to partner with the auditor agent for ongoing audits post-launch.
OtterClam is a memecoin DAO, built by experienced DeFi devs, skilled designers and otter researchers. Our goal is to create a policy-controlled memecoin system, in which the behavior of the CLAM token, is controlled by the DAO. Current memecoins are cute but they lack tokenomics. Let’s introduce the first decentralized reserve memecoin — $CLAM.
OlympusDAO introduced new tokenomics to the crypto community, and this financial model has been met with positivity. OtterClam Finance is focusing on creating a super-cute memecoin with strong tokenomics, to create a positive flywheel for treasury growth, as $CLAM supply increases. If you stake your $CLAM in the Otter’s Kingdom, the Otters will work hard to harvest more $CLAM, for you!
¹OtterClam is not endorsed or partnered with OlympusDAO.
Here we will address the following topics:
- Memecoin Design
- Smart Contracts & Frontend/Design
- IDO & Launch (🦦,🦦)
1. Memecoin Design
Most memecoins do not have established tokenomics, which increases the likelihood of extreme price volatility.
The OtterClam founders noticed that the OlympusDAO created the strongest tokenomics of the DeFi world. We decided to bring the bonding and protocol-owned liquidity to the Otter Kingdom!
Our first kingdom will be on the Polygon network. We believe Polygon as an Ethereum scaling solution is the future of DeFi! It is worth mentioning that significant liquidity and a rich DeFi ecosystem already exist on Polygon, which should provide a strong foundation for driving OtterClam’s growth.
Our long-term goal is to be seen as the stable memecoin of Polygon and the broader DeFi ecosystem, an ecosystem we believe is primed for explosive growth.
Here’s how we’ll start…
To bootstrap a healthy treasury from day 1, we will be going to market with the following bond types, including one stable and one liquidity position:
- MAI-CLAM LP
Note: We choose MAI as our first reserve position because QiDAO is the largest Polygon-native stable asset. OtterClam loves Polygon and and plans to engage with the Polygon ecosystem actively.
We are testing various policy to finalize bond parameters and performing ongoing design to create a thriving Otter community.
In summary, we believe we can be a leader of the memecoin world in the Polygon ecosystem. Through forging partnerships internal and external to that ecosystem, we’ll be bridging significant interest and funds into the Polygon ecosystem.
OtterClam borrows the tokenomics from OlympusDAO.
- Each $CLAM is backed by $1 MAI (more types of reserve are on the way).
- Tokens cannot be minted or burned by anyone except the protocol.
- The protocol only mints or burns in response to price.
- $CLAM does not rebase. Instead, a new supply is created via direct sales into the market and burned via direct purchases from the market. This way, $CLAM remains backed by the assets in the treasury, i.e., USD MAI.
This basically creates the following conditions:
- When CLAM market price is below ↓ 1 MAI, the protocol buys it back and burns $CLAM.
- When CLAM market price is above ↑ 1 MAI, the protocol mints and sells new $CLAM.
This is because the treasury must hold 1 MAI and only 1 MAI for each $CLAM. Every time it is bought or sold, it makes a profit. That means the protocol either gets more than 1 MAI for the sale side or spends less than 1 MAI on the purchase side.
The fact that the protocol holds MAI for each token allows us to say with certainty that $CLAM will not trade below its intrinsic value in the long term.
Holding stable coins to back tokens also creates a yield generation opportunity.
Locking stable coins in the treasury would be a waste. Given that the protocol never needs more than a few percent of reserves, even on the largest of down days, it means Otters are free to utilize the rest to plug into yield aggregators and add those proceeds onto profits from buying and selling $CLAM.
*For more info: https://docs.otterclam.finance
Let’s talk about incentives. Incentivizing the community contributors, founders, and developers is a crucial part of any project. OtterClam is born from the community! So, we would like to do a fair launch.
Just after launching our community, OtterClam, our Discord had a few people join at the start, followed by hundreds, and then thousands came and joined just on the first day! We are fully engaged with our loyal community as they give the team many ideas, suggestions, and recommendations to strengthen the ecosystem. We can feel their passion and eagerness. Encouraged by their high expectations, we work harder to accelerate the platform building process.
However, building & growing an ecosystem is costly. To manage these necessary expenses, we will create pCLAM as a team and DAO incentive to ensure the protocol can continue to grow and innovate.
How pCLAM works
pCLAM is a precursor derivative of $CLAM; it gives the holder the option to mint $CLAM by burning pCLAM and providing the intrinsic value of $CLAM. For example, the DAO would provide 1 MAI and 1 pCLAM to mint 1 $CLAM.
This is similar to an option. pCLAM is worth the price of $CLAM minus intrinsic value, and it only makes sense to redeem it when $CLAM is above intrinsic value. This ensures that our incentives are aligned to keep the premium alive.
But it doesn’t stop there. pCLAM is also vested based on supply. As $CLAM supply grows, more pCLAM become available to redeem. So we don’t get an upfront payoff or an arbitrary date at which tokens have vested. We need supply to grow too.
This creates the most optimal incentive alignment you could ask for. Tokens vest along with supply, and are only redeemed when we trade with a positive extrinsic value. We the team don’t only want supply to increase, or price to go up, we want both. And so do you.
pCLAM Distribution Breakdown:
- DAO: 700m and no supply cap (Community can vote on this)
- TEAM: 300m and 5% supply cap (which is lower than other project because we love community)
- Venture Capital: 0% (No, we don’t have V.C. backing)
- Advisors: 0% (All Otters come from the community and work for the community)
We will allocate these funds to project development, more cute design work, full ongoing audits, incentivizing the best talent to help build a prospering OtterClam ecosystem.
4. Smart Contracts & Web/Design
Our smart contracts are live on testnet, as they are the audited OlympusDAO contracts with minor changes for bond types. We are conducting final review to make sure everything is working as intended for the launch. Do note that a single change means the contracts are now unaudited and experimental. Approach this risk accordingly.
The OtterClam team takes smart contract implementation and tokenomics very seriously, but we think the broad appeal of our project comes from a certain mixture of business and pleasure. Our OtterClam app stands out as one of the cutest, coolest places in all of DeFi. Our extremely talented, in-house designer has not incorporated any of the app’s features at the expense of security, user-friendliness, or charm.
After all, cute is invincible!
The IDO & launch is just the beginning of the Otter Kingdom! After the launch we will begin the following work immediately::
- Complete audit
- Setup the OtterDAO
- Integrate more bonds
- Introduce (4,4) bonds
- Otter NFT drops (Who doesn’t wanna have a cute otter?)
Here are some of the exciting developments coming to the OtterClam ecosystem soon:
- NFT/Bonding/Staking integration
- Treasury yield earning strategies deployment
- Cross-chain reserve mechanism
6. IDO & Launch (🦦,🦦)
Finally, what you’ve all been waiting for
MOGMI = Most Otters Gonna Make It!
Throughout the month of October, the otter king and team have been working hard building the website, developing contracts, and solidifying partnerships. We are targetting an early November launch date.
The first 1,000 initial discord whitelist offering closed in 24hrs!
But don’t be frustrated! More slots will be coming soon on our Discord!
Here are some IDO details:
- Target: 1,000,000 $MAI
- Price: 5 $MAI per $CLAM
- Allocation: 200,000 $CLAM
- Limit per wallet: 1,000 $MAI
- All $CLAMs in the IDO will be staked directly in OtterClam platform after launch and locked for 24 hours.
Here are some details on the Fair Launch:
- The liquidity pool will open at $15 with $750k MAI liquidity
- The initial system will only allow staking and bonds (no sales/purchases)
Each participant can only buy their pro-rata share of the offering. When you buy, you are removed from the whitelist. That means if some people buy less than their share, everyone who has not yet bought will get a higher allocation. We will announce the minimum when submissions have been tallied.
We will continue with regular updates and always be available on Discord and on Twitter to continue the growth of the Otter Kingdom!
Together we can make OtterClam stronger! MOGMI (🦦,🦦)
To stay up to date, follow us on Twitter and join the community on Discord.