Did you know that the CLever’s ingenious safe yield leverage strategy can be applied to more than just CVX? With the upcoming token offering primed to kick off CVX leverage and spawn a new #RealYield real one in CLEV, it’s time to lift the curtains on CLever’s next big move: leveraged Concentrator stablecoin farms! What’s even more exciting is that we’ve partnered with the king of stablecoins, Frax Finance to help us bring this spectacular new opportunity in leveraged yields to stablecoin farmers!
<<record scratch>> say what??
There’s a lot going on here! To understand where CLever is going and how it’s going to get there, we first have to consider CLever’s mechanism in general terms. CLever helps farmers earn more yields in the best farms/tokens by letting them claim future yields, which can be swapped into more of the yield bearing initial token and re-deposited to earn more. Yields from the user’s deposit pay down their debt to the system automatically, while liquidity providers in the synthetic-real swap pool earn a share of the platform’s fees.
Put in those terms, it’s easy to see that Concentrator’s vault returns can be amplified by employing CLever leverage. Also, interestingly, for stablecoins with similar risk profiles a single synthetic future-yield token (in this case, clevUSD), with a single swap pool on Curve can be used to support several farms/vaults. Enter the hot new FRAXBP: by pairing clevUSD with FRAXBP we can provide leverage services on all Concentrator’s frax stable strategies.
The system works like this: From CLever, users select one of Concentrator’s Frax strategies to use as the underlying collateral and yield source. The user deposits to CLever, and behind the scenes CLever places the deposit in the selected Concentrator strategy. At this moment the user may claim up to 50% of the value of their deposit in clevUSD which can be swapped in the FRAXBP-clevUSD Curve pool (or burned in the Furnace) for FRAX. The FRAX can be redeposited the same strategy for simple leverage, or even a different one to diversify principal exposure! As the underlying Concentrator vault pays yield on the deposit, the user’s debt to the system is decreased proportionally as the yield itself is periodically harvested and swapped into FRAX (then distributed via the Furnace).
What’s the deal with Frax?
To bring this new system online we’ve worked together with the incredible Frax team to create a partnership that will bring initial liquidity to the clevUSD-FRAXBP basepool. In exchange for a share of CLEV tokens (note updated distribution schedule in offering announcement article) the Frax team will devote some of their CVX voting power to gauge rewards for the Curve clevUSD-FRAXBP pool, during its first three months in operation. These rewards will help bring the needed liquidity to that pool to support users taking leverage, while offering a nice new stablecoin-denominated farming opportunity for LPs.
CLEV grows more powerful
The CLEV token has been described, up to this point, as a CVX printing machine because all Clever shares its CVX-denominated fees with CLEV lockers. As we roll out the new FRAXBP/clevUSD system, something interesting will happen: CLEV lockers will suddenly have a second revenue stream, denominated in FRAX. Do you see, anon? CLEV is not a CVX machine, it’s a powerful multi-coin #RealYield monster. With this change CLEV lockers will earn stables as well as CVX… and in the future? Use your imagination!
What’s Next?
When the background work is complete, we will launch the new smart contracts and web interface timed with the start of the first Curve gauge epoch with rewards streaming to the clevUSD-FRAXBP pool. As liquidity grows in that pool depositors can create leveraged farming positions with all the classic CLever leverage benefits: no risk of liquidation, no oracle risk, and funding costs that can’t suddenly change on you.
The release of clevUSD, leveraged Concentrator stablecoin pools, and especially the partnership with Frax Finance powerfully demonstrate our approach to expanding the power and usefulness of CLever and bringing new high-quality leverage farming opportunities to the world!
Watch out for the official launch announcement and then come give it a try!
As always, follow us on Twitter or stop by the Discord to learn more! CLever’s smart contracts are accessible through our front end at https://clever.aladdin.club/
