Introducing Pearl Chests and Pearl Notes

  • Our new staking pools: Otter Pond and Otter Lake
  • PEARL Chests and how to use them
  • PEARL Notes and what you can do with these NFTs

Otter Bites (TL;DR)

  • Access to Otter Lake requires Otters to wrap their CLAMs into PEARL, and then lock the PEARL in a vault for a minimum of 2 weeks. We call these Pearl Chests.
  • Rewards from Otter Lake are claimable at the end of each epoch (the 8-hour rebasing period). Whereas Otter Pond emissions are paid in CLAM, Otter Lake emissions are in PEARL. Remember, PEARL’s value is CLAM’s value * index, so the emission token doesn’t change the amount of reward.
  • Once claimed, you can relock the PEARL in Otter Lake for higher rewards.
  • Locked PEARLs are locked in a non-custodial vault (PEARL Chest) registered as an NFT that you will be able to transfer, sell, or buy as any other NFT on OpenSea or on the OtterClam NFT marketplace.
  • Otter Pond will receive 20% of rebase emissions.
  • The reward token will be in CLAM.
  • There is no locking mechanism, which means you can stake and unstake your tokens as often as you want.

Why do we need a new staking system?

  1. The first problem is Bond Flipping. This happens when an Otter unstakes their CLAMs, sells them, and then bonds with the tokens obtained from the sale. For example, Narloke is earning 12% on his 5-day ROI by staking. He sees a FRAX (4,4) Bond that guarantees 18% 5-day ROI. So, Narloke unstakes his CLAMs, sells for FRAX and then buys the FRAX (4,4) Bond. Now, Narloke is earning 6% percent more than just staking. This is detrimental to the OtterClam ecosystem because it negatively affects the price of CLAMs and indirectly lowers the runway.
  2. The second problem is Rebase Sniping. Some Killer Whales are profiting from the rebase system to collect CLAMs while not staking for the entire duration of each epoch. This is also affecting other similar projects and is rewarding behavior that doesn’t align with our community’s (3,3) values.

Introducing Otter Pond and Otter Lake

  • Access to Otter Lake requires Otters to wrap their sCLAMs into PEARL, and then lock the PEARL in a PEARL Chest for a minimum of 2 weeks.
  • Rewards from Otter Lake are claimable at the end of each epoch (the 8-hour rebasing period). Whereas Otter Pond emissions are paid in CLAM, Otter Lake emissions are in PEARL. Remember, PEARL’s value is CLAM’s value * index, so the emission token doesn’t change the amount of reward.
  • Once claimed, you can relock the PEARL in Otter Lake for higher rewards.
  • Locked PEARLs are locked in a non-custodial vault (PEARL Chest) registered as an NFT that you will be able to transfer, sell or buy as any other NFT on OpenSea or on the OtterClam NFT marketplace.
  • Otter Pond will receive 20% of rebase emissions.
  • The reward token will be in sCLAM.
  • There is no locking mechanism, which means you can stake and unstake your tokens as often as you want.

Introducing PEARL Chests

  • SIM has 10 PEARLs locked for 2 weeks with a boost of (x 1)
  • OtterKing has 10 PEARLs locked for 6 months with a boost of (x 2)

Reward Allocation: Current vs New System

Current System

New System

Example

  • Pingu1 has 10 sCLAM in Otter Pond
  • SIM has 1 PEARL locked in Otter Lake for 2 weeks with a boost of (x 1)
  • OtterKing has 1 PEARL locked in Otter Lake for 6 months with a boost of (x 2)
  • Otter Pond’s staking reward is 20% of the total amount of distributable CLAMs, which is 3 CLAMs. (20% of 15 CLAMs is 3 CLAMs)
  • Otter Lake receives 80% of the emission, which is 12 CLAMs. (80% of 15 CLAMs is 12 CLAMs)
  • Let’s also assume that there are only our 3 Otters qualified for the rewards. Remember, allocation of rewards is dependent on emission total and how many Otters are receiving those emissions. This is how the current system works too. If only one person staked, they would receive 100% of the emission.
  • Pingu1 received 1 CLAM
  • SIM received the equivalent of 5 CLAMs
  • OtterKing received the equivalent of 9 CLAMs

What are PEARL Notes?

Managing your PEARL Notes

  • Add more PEARLs to one of your PEARL Chests. PEARL Chests are defined by their lock duration, so you will not be able to change the lock of the Chest to which you’re adding PEARLs, but its expiration date will be reset and will be updated to your PEARL Note.
  • Create a new PEARL Chest with the duration you want and get a new PEARL Note associated with it. Depending on the duration of the new Chest and its associated boost, you will earn additional rewards on each rebase.

PEARL Notes Bonus

  • Locked 50 PEARL for 1 month — Furry-hand Note
  • Locked 50 PEARL for 3 months — Stone-hand Note
  • Locked 50 PEARL for 6 months — Diamond-hand Note

An example of using the new staking system

  • Narloke wraps his CLAMs into PEARLs. Narloke received 10 PEARL.
  • Narloke wants half his PEARLs in a 6-month Chest, where he will receive the maximum bonus rewards. He wants the other half in a 1-month Chest, where he might earn some bonus but have access to those PEARLs sooner.
  • Narloke locks PEARLs in Chests and receives the NFT Notes.
  • Narloke wants to sell some of his PEARL and add some back into his Chests.
  • Narloke waits after a few rebases (epochs), so he now has 2 PEARL. That’s the great thing about PEARL being the rewards…they earn rebases even if you aren’t actively managing your tokens.
  • Narloke unwraps one PEARL and sells a portion of the CLAM for some monthly income.
  • Narloke takes the other PEARL and adds it back to the 1-month Chest. Because Narloke added more PEARL to the 1-month Chest, the lock period of 1 month resets. Narloke will not add any PEARL to the 6-month Chest because he does not want that lock period to reset.
  • The NFT Note for the 1-month Chest is automatically updated to reflect the new number of PEARL.
  • Rewards can be claimed after each epoch in Otter Pond. These rewards are in PEARL, so even if you don’t claim them, they are still reflecting the increased value of the rebases.
  • Determine your strategy and use the system to benefit yourself and other Otters! If you want to mainly (3,3), lock your PEARL in long-term Chests. Remember, you can have as many Chests as you want (e.g. 2-week, 1-month, and 6-month Chests).
  • If you desire to Bond Flip or Snipe Rebases, that is still possible! Given the constant buying and selling those strategies require, you will likely only be playing in the 20% Pool.

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