Pearl Power

Introduction

Review of Treasury Updates

  • CIP021 (vote passed 5/5/22) — We took advantage of the market dip by converting $386K of MAI/USDC that was earning about 7% APY in Qi to our Qi/WMATIC farm. This farm is currently earning about 65% APY in Qi, while also giving us additional voting power in the QiDAO protocol (since half of the farm is made up of Qi). That $386K is now earning more Qi for the protocol than the entire $1.386M MAI/USDC farm was before it, and we still have $1M of stablecoin liquidity earning rewards in our treasury.
  • CIP022 (vote passed 5/20/22) — We moved $50k of our QuickSwap CLAM/MAI liquidity pool (LP) into Dystopia, a newly released DEX on Polygon. The creators of Dystopia have singled out OtterClam as one of about 30 influential Polygon-native protocols, and to support their own decentralization have airdropped each protocol an initial governance token allocation. As a result, we have significant initial voting power in the Dystopia ecosystem (far more than a $1.3M market cap project normally would). Moving some of our liquidity onto the DEX allows us to vote for the CLAM/MAI pair and receive DYST rewards as a result. The other $500K of CLAM/MAI liquidity remains on QuickSwap for now.
  • CIP023 (vote passed 5/25/22) — We converted our CLAM/MAI liquidity on Dystopia to CLAM/USD+. USD+ is a new, very low-risk, yield-bearing stablecoin from the creators over at Overnight.fi. It earns anywhere between 5–12% APY for USD+ holders in the form of daily rebases. I suggest you read more about Overnight.fi and USD+ on Medium to get the whole picture. This allows us to not only earn DYST rewards through voting for the LP pair on Dystopia, but also to grow our LP passively thanks to the USD+ rebases. This will passively deepen our liquidity (reducing price impacts on trades), grow our treasury, and add passive CLAM accumulation in addition to buybacks. In the future, we may migrate our entire QuickSwap LP ($500K+) to CLAM/USD+ on Dystopia to more fully take advantage of this unique mechanism.
  • CIP024 (vote passed 5/28/22) — We migrated the remaining $1M MAI/USDC liquidity from QiDAO to Dystopia. We’ve also left this vote “open-ended,” so to speak; giving us the option to swap our MAI/USDC for another stablecoin LP on Dystopia if we so choose. This allows us to earn additional DYST rewards at an APY much higher than what we were earning on QiDAO. Besides the increased revenue, this helps us to gain additional governance power in the Dystopia ecosystem. This unique opportunity to acquire extra governance power is important for our next passed vote….
  • CIP025 (vote passed 5/29/22) — OtterClam begins gauge voting on Dystopia LP pairs and becomes an active participant in the Dystopia Wars. If you have no idea what that means, fear not! I will describe this in greater detail below.

First, the TL:DR of all of these CIPs:

  • About 10% of our core CLAM LP is now growing passively, in addition to trading fees. This also adds a small passive buy pressure on the CLAM token because of the nature of liquidity pool smart contracts.
  • We are now earning more Qi than we were a month ago, with additional Qi governance power, while tying up much less overall liquidity in the process.
  • With this newly-freed liquidity, we are now earning DYST rewards at a high rate which increases every day (as most of the DYST will be reinvested to earn even more DYST, through locking on Dystopia and through conversion to a MATIC/DYST LP). This is an income stream that OtterClam did not have before and gives us outsized governance power on Dystopia, relative to the size of our protocol. We were able to accomplish this without hindering OtterClam’s original goal of acquiring Qi through the Otter Treasury, and in fact, have increased our Qi acquisition as described above.
  • As a result of our significant Dystopia governance power, we are opening up gauge voting on Dystopia pairs to PEARL and Pearl Chest holders (PEARL is just wrapped CLAM. An explanation of the relationship of CLAM to PEARL, and Pearl Chests can be found here). This adds further utility to the CLAM token.

Gauge Voting 101

CLAM as a Weapon in the Dystopia Wars

Conclusion

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