With all the excitement surrounding Concentrator’s ongoing IFO you could be forgiven for thinking that CLever is taking a backseat at Aladdin just now. Not so! Concentrator and CLever are undergoing parallel development and the two complement each other in several ways such that each step for one helps lift the other. It’s nearly time for CLever to take its next step, and it’s also a big one: the launch of the full mechanism! With this launch the Aladdin team will take a big step toward bringing its new vision for safe, liquidation-free leverage farming to the market.
CLever CVX has been running in beta mode for several weeks and has attracted over 750,000 CVX in deposits entirely organically. In its current “beta mode,” CLever operates as a bribe auto-harvester that harvests yields and swaps back into CVX. It’s a great way to set-and-forget your CVX bribe harvesting, but the real magic of CLever can only be revealed with the availability of clevCVX liquidity on Curve and the full engagement of the CLever incentive mechanisms. With this change, CLever will evolve from a simple harvest automator into a powerful leverage farming system and a new key piece of the Convex ecosystem.
Making CLever fully operational involves the creation of a clevCVX-CVX liquidity pool on Curve, and incentivization of this pool will be based on CLever’s token: CLEV. CLEV will be a CVX producing #RealYield machine — vote-locked CLEV tokens will earn at least 75% of the CLever platform’s fee revenue (the rest goes to the treasury for growth & opex, final % TBA) and they will also boost your yield in the clevCVX-CVX LP. These LP rewards will create a powerful incentive for users to deposit their CVX into the liquidity pool, which in turn will enable instant swapping from clevCVX to CVX and thus allow future-yield-claimoors to take leverage! LPs earn yields on their fully liquid CVX and borrowers lever up their bribe income. 🤝
It is finally time to reveal the details for CLEV’s planned tokenomic structure! Similar to Concentrator, CLEV tokens will be ve-lockable for governance power and revenue sharing. Locking CLEV will follow the typical ve-approach developed by Curve, namely 1 CLEV locked for 4 years gives 1 veCLEV voting power. Users will have the option to choose the locking duration from 1 day to 4 years. As time goes on and the time remaining on the lock drops, so too does the ve power so at any time users may extend the lock on their tokens to maintain the maximum ve-power. Maximum ve-power means maximum CVX #RealYield, and maximum LP earning boost.
Update 2022–09–08: The CLever team has announced an exciting partnership with Frax finance to help bootstrap stablecoin leverage! Distribution schedule updated accordingly.
Update 2022–09–30: A second incredible partnership announcement is pending. This is the final distribution schedule update before token sale.
As you might expect from an Aladdin project, there is NO team allocation, NO presale or VC involvement, and we will be issuing tokens through a rather unique mechanism. For CLever, we will use a “capped elastic token offering”. CLever will raise CVX by selling CLEV tokens at a fixed price of 1 CLEV for 1 CVX, but we will cap the maximum amount of CVX raised at 100,000. The total supply will be elastic: however much CLEV is purchased within the offer period (planned to be one week) will represent 5% of the total issuance. During the offer period, as long as the cap has not been reached users may buy CLEV with CVX. At the end of the offer period, the rest of the CLEV tokens will be minted and distributed according to the schedule such that the total sold during the offering equals 5% of the total supply.
Every participant in the offering will pay the same price, namely 1 CVX per 1 CLEV, however there is one slight exception: any address that has deposited in CLever while it is still in beta will receive a 5% bonus on their purchase. This bonus is only available to participating addresses that had deposits in CLever prior to the start of the offering. This bonus is separate from the airdrop allocation.
Understanding CLEV Vesting: Circulating Market Cap vs FDV
The vesting details for each part of the token allocation are extremely important, and a key part of the liquidity bootstrap plan. Note that there is some amount of vesting associated with every allocation in the schedule except the offering and the initial liquidity. As of the end of the offering period, the circulating market cap will be held entirely by buyers of the offering, plus some protocol owned liquidity. This puts very low limits on the number of CLEV tokens which can be ve-locked and which will therefore earn the protocol fees during the early days.
Over the course of the first year, each class of tokens vest partially, however many of the vested tokens will not be circulated. The total vested tokens at the end of the first year will equal 35.5% of the total, but the treasury will hold their share in reserve, and Aladdin will max-lock their allocation, so the maximum possible circulating tokens after one year are only around 18% of the total. Of those, some fraction may be ve-locked also.
Airdrop
The CLever airdrop allocation, first announced here, is divided into two tranches. 3% of the tokens will be shared among CLever beta users prior to the announcement of the airdrop (snapshot on June 20, 2022), and 2% will be shared among all beta users prior to kickoff of the CLEV offering (Snapshot not yet taken, date TBA). In both cases user shares of the airdrop will be calculated using a score of CVX deposited multiplied by time, with larger and/or earlier deposits earning a higher score.
A complete list of airdrop recipients and their earned amounts will be posted prior to the distribution of the tokens. All airdrop recipients will have the tokens vest linearly over one year.
Community Contributors aka Boosters
During the Concentrator IFO we introduced the idea of a community booster program. The program provided a way to offer people in the community the chance to earn some tokens by helping to publicly amplify the message and educate/support the community. The IFO is still ongoing but a lot of incredible researchoors, threadoors, YouTubeoors and others with special talents from our community stepped up to help, to great effect!
For CLever we will offer a similar program, but with a twist: the tokens will be distributed monthly rather than in large tranches. This means each month veCLEV voters will allocate about 0.17% of liquid (i.e. fully vested and tradeable) CLEV tokens. Anyone in the CLever community can make some content and request to be on the ballot in any given month.
Raising with a Purpose
As with Concentrator, this token offering is being done with a specific goal beyond just acquiring treasury assets to fund ops and growth. In the case of CLever, will be using raised CVX to seed liquidity in the clevCVX-CVX pool, and thus to kickstart the availability of CVX so CLever borrowers can take leverage as soon as possible!
Next Stop? Concentrator Lever
The CLEV token generation event is a one-time deal, but those tokens will capture the value associated with CLever’s whole, bright future. When imagining the future of CLever, consider that while the CLever system was built first and foremost around the vlCVX bribe system, the powerful fundamental principle (leveraged farming yields via synthetic tokenized future yield) can be generalized to other high yielding tokens. And here is where the first major puzzle pieces of the Concentrator-CLever harmony start to become visible:
- CLever can provide a leverage yield opportunity for the aCRV token
- Concentrator can leverage the CVX-clevCVX LP yields as a concentration target, allowing users the option of keeping and compounding CVX instead of selling
- Concentrator can tokenize its LP vaults, then CLever can create leveraged farming opportunities on those yielding tokens.
These potential future developments really highlight the power of the CLever model and it doesn’t stop with the Concentrator symbiosis. Any high yielding token could be a potential target for CLever-style leverage services, and if you think, like we do, that the model is arguably the best risk-reward tradeoff for borrowing in DeFi, then there is no end to the possibilities.
Check out CLever, and if you have any questions, come ask them in our Discord, and don’t forget to follow us on Twitter!
