I see a lot of confusion floating around about CLAW. This post will act as TLDR where people can get some clarity. All info here has been pieced together across different media platforms and with some help from the BadgerDAO team.
What is $CLAW?
It is a yield dollar that you mint after using one of our Setts as collateral and is in collaboration with UMA. The current cap on how much can be minted is $1b. Unlike DAI, Claw will have an expiration that will be a fixed term, from release…not from the time that you mint as a user. From what I can tell, the term may be 8 weeks, but nothing official there at the moment. We can look at transitioning to a perpetual contract in the future.
To keep CLAW pegged to USD, we will have a new Sett(s) paired with USDC. This will enable the minting of CLAW to be put to use and earn APY. While CLAW will have interest charged on minting, the theory is we will be earning much more on the Sett via Badger, Digg, UMA, and potentially Sushi rewards.
Alternatively, you can mint CLAW and use it in the existing DeFi stack. Buy the underlying asset, speculate on assets, etc.
We will have 2 versions…sCLAW will be collateralized with our wBTC/ETH Sushi Sett and bCLAW, which will be collateralized with our bBADGER Sett. In the future we can add more Setts as collateral.
Still some unknowns like LTV rate for collateral and whether we will get this integrated on Sushi or not, as we’ve proposed a special request through their ONSEN program. And of course, I can’t answer ‘Wen CLAW’
It appears that many people seem to think that CLAW will be some sort of airdrop. I have absolutely no reason to believe that and as a community, I think we should try to correct that assumption when we see it voiced.
I will keep this post updated as new developments come in. Hope this helps.
Link to BadgerDAO write up;CLAWS Explained: Scratching the Surface of Sett-Vault Assets | by Badger DAO 🦡 | Feb, 2021 | Medium
Link to UMA basics of minting on their protocol;Borrowing and Lending the “Yield Dollar” on UMA | by Clayton Roche | UMA Project | Medium