After announcing CLever USD and our partnership with Frax Finance in previous articles as well as on our community calls, the time is here to launch! The clevUSD token has arrived, so bring your FRAX (or other stables!) over to CLever to get started!
For those who aren’t already familiar with CLever, it’s a no-liquidation lending platform powered by a bond market. User loans are denominated in “clevTokens”, which represent future yields from the underlying collateral. CLever started with the clevCVX token built on Convex and quickly became one of the top holders of CVX.
CLever USD uses the same mechanism to allow farmers to amplify yields on their stablecoin LPs. Here’s how it works:
- Select an initial farming strategy and deposit your stablecoins as collateral (or zap in). At launch you can choose between fraxusdc, LUSDFRAXBP, and TUSDFRAXBP, with more to come.
- You will be immediately able to claim up to 30% of your deposited collateral as clevUSD!
- In parallel, CLever deposits your collateral to the Concentrator strategy vault you selected, which will automate compounding your yields
- CLever periodically claims your accrued yield from Concentrator, swaps it to FRAX, and uses that to repay your loan. If you haven’t taken a loan, you can claim your yields as clevUSD without incurring debt.
So, what can you do with clevUSD? This is where things get fun!
Most obviously, you can swap your clevUSD for FRAX, one of the best stablecoins in DeFi. From there, your options are endless, including looping it back into CLever FRAX to create a safe leverage position.
You can also use your clevUSD to farm the Curve clevUSD/FRAXBP pool and earn yields directly! The gigabrains at Frax will be devoting some of their CVX voting power to gauge rewards for the pool for the first 3 months.
Wen launch?
The smart contracts are ready and, as with all Aladdin projects, they’ve been audited. As with CLever CVX, we’ll still be starting with a short period of “beta mode” to give users a sneak preview of Clever USD. In beta mode there won’t be any Curve liquidity yet so you’ll only be able to swap via the Furnace. Additionally, CLever USD will limit total borrowing during the beta period to $100K (i.e. no more than $100K of clevUSD can be claimed) and fees will be minimized during this period.
While CLever USD is in beta, we will be working through the Curve governance process to obtain necessary gauges so that we can launch liquidity mining incentives and build up liquidity in the clevUSD/FRAXBP pool.
As the Curve pool deepens, we will transition out of beta mode which will mean phasing in a higher debt ceiling, and normal fees, which will be shared with veCLEV lockers.
There’s “one more thing”!
If you’ve been following along, you know that we’ve been working on an automation for the CLever CVX bond market. One of the most common requests we get is to automate and optimize the clevToken bonding strategy and we’ve been working behind the scenes with Concentrator to create a super automated way to do that. Because all CLever collateral tokens share the same DNA, we’ll be able to apply the same concept to CLever USD. Stay tuned for more.
For now, enjoy earning safe leveraged yield on your stablecoins with CLever USD powered by FRAX!
Try us out on our website, follow CLever on Twitter, or stop by our Discord to chat with our community chads. See you there!
