DeFi protocol BadgerDAO is about to launch a new product called CLAWS into the crypto space soon.
A very recent tweet thread by the official BadgerDAO Twitter account describes CLAWS as a bitcoin-centric product that is “more of a yield dollar than a stablecoin, set to be minted exclusively by collateralizing Sett-Vault assets”.
What Will CLAWS Bring To The Crypto Space?
According to the Twitter thread by BadgerDAO, CLAWS uses the concept of yield dollar, meaning the asset utilizes expiry dates to settle to a fixed amount after the expiry date passes. Initial expiry dates are being discussed to be 60day increments, after which they will be only worth 1$.
These collateralized yield dollars, also known as CLAWS tokens, can then be generated when a user places collateral at some LTV ratio. As of now, users can place two types of collateral tokens -bBadger and wBTC/ETH, respectively, with support for more token types coming soon.
After users have generated CLAWS tokens, they can then deposit these tokens into a Liquidity Pool to receive CLAWS-SLP tokens in return which can then be staked to Sett-Vault value to gain additional rewards.
Sett-Vault is a product of BadgerDAO in which users can deposit different token types of Bitcoin to give birth to an automated yielding system. Sett-Vault will play a major role in the farming industry, as it will prove to be a stable asset with additional yielding opportunities.
Badger Performance Summary
As of now, according to coinmarketcap.com, Badger has had a drop in price of about 19% in the last 24 hours and is currently sitting at a price of 53.61$ after gaining an all-time high of an average 84$ in February. This may be concerning at first, but with the release of CLAWS and other earning opportunities, Badger can definitely recover from the hit.
Being a bitcoin-backed asset, CLAWS will further help in strengthening the value of Bitcoin, making it a fairly profitable investment that users can seek to gain rewards.