Greetings, Otters!
Your humble ambassador from the Otter Kingdom, Ogmi, has returned to you once again. Today, I’d like to explain how OtterClam’s unique marriage of a DeFi protocol and NFT project set it apart in the DeFi space and give value to its native token, CLAM.
was mainly focused on OtterClam protocol mechanics, and was rather technical in nature. Let us now move away from the nuts and bolts of the protocol, and take in the big picture by looking at the entire Otter Kingdom ecosystem. There are a lot of moving parts for such a small project, but that is where our strength lies and what differentiates us from the rest:
The Otter Treasury (also encompassing the Pearl Chests and Pearl Notes seen above) is what you might consider the “traditional” DeFi protocol component of the Otter Kingdom. DeFi protocols exist, at a basic level, to reward investors for depositing liquidity into their protocol. They typically include complex, lucrative mechanics to generate profits for liquidity providers.
To that end, the Otter Treasury ticks the box, and then some. There is a treasury that earns yield on its own, which allows for sustainable staking of CLAM (which is actually wrapped as PEARL), and the opportunity for even more rewards if you commit to locking your PEARLs in chests for a period of time.
OtterDAO recently designed a novel buyback system for the OtterClam protocol explained at length , which helps to support the market price. Finally, the treasury has been proactively geared towards acquiring Qi, positioning the Otter Kingdom very favorably when the expected Qi wars begin to intensify (there will be a separate article specifically about this subject soon). We have also made an alliance with similar protocols on the Polygon blockchain to support this effort.
These characteristics could make up their own, successful standalone project. This was not sufficient for OtterDAO, and so the Otter Kingdom was further expanded.
The core team has been working on our Otto Genesis NFT Collection for several months. The genesis collection will be dropped from March 19th until sellout. This and all subsequent collections will be full-fledged NFT efforts in their own right, but will have the significant advantage of supporting the Otter Treasury, and by extension, the CLAM token.
If you have been around NFT projects leading up to their genesis mint, you may have noticed that the vast majority of them build their project around 2 things - artwork, and hype. Some NFT projects have utility rewards built into their collections; this utility may or may not pan out for investors, based on how well the NFTs sell. Many more NFT projects promise utility at some point after the release of their NFTs, often accompanied by a somewhat fuzzy roadmap.
Collecting these NFTs for their artistic value is one thing. In most cases, however, investing money in an NFT with the intent to profit from it can be quite the gamble. The success of an NFT project is almost solely dependent on how well an NFT collection mints; this is why when a project has a “bad mint” (the collection does not sell out within a short period of time), it can be devastating, if not an outright death sentence for the project.
In the Otter Kingdom, however, our Ottos are just one piece of the whole. Make no mistake, the artwork is very present:
In addition to the excellent art, utility is already built into the NFTs. The genesis NFTs are breedable if you have a male and female (or a male/female and a rare, non-gender Cleo variant), and the Otto Pup that is birthed can be staked in the PAW Market (our in-house NFT marketplace) for profit sharing.
An Otto app is also being built for release shortly after the initial NFT mint, which brings gamification to the Otto NFTs. Each NFT will be minted with certain traits or characteristics. They can then be used in the Otto app to go on missions with other Ottos for CLAM prizes and rare equipment drops. This rare equipment will assist in earning more CLAM prizes in future missions, as well as fetching a handsome price in the marketplace.
Our PAW Market plays a pivotal role in all of this, supporting the Otto NFTs as well as the Otter Treasury. The NFTs can be aesthetically customized with accessories from the PAW Market. NFT holders can also boost the inherent traits of their Ottos with equipment from the PAW Market as well. This will aid them on missions in the Otto app.
All minting, trading, customizing, and equipping will require CLAM, and that CLAM will be burned and/or returned to stakers in the marketplace. ETH is also an option for transacting in the PAW Market (at a higher price than if CLAM was used), which will be deposited in the Otter Treasury and/or returned to stakers. This is where the synergy between DeFi and NFT projects is seen most clearly.
The NFTs do not need to sell out in 10 minutes for the project to survive, because there is already a self-sufficient DeFi protocol (the Otter Treasury) serving as a financial foundation for the Otter Kingdom. Any NFT mints, trades, customizations, etc. only serve to boost the treasury through ETH deposits, and the CLAM token market price through burns. In this way, minting NFTs in the Otter Kingdom carries less risk than minting with other projects that rely exclusively on those mints to be successful.
The Otter Treasury does not need NFT sales to survive, but gets a large boost to revenue and market value, which rewards those who have provided liquidity to the treasury in the form of CLAM/PEARL holders, and especially those who locked up their PEARLs in chests. In addition, having an NFT collection can help draw attention to the protocol from people more interested in NFTs than DeFi mechanics. These same people would be incentivized to participate in the protocol, serving as an organic marketing campaign of sorts. Our Discord server also has an educational section that helps NFT enthusiasts understand the DeFi component of OtterClam, and vice versa.
Each component could be its own project. Together, however, they create a positive feedback loop where each is reinforced without negatively impacting the other. This is what makes the Otter Kingdom strong, unique and sustainable. In a volatile and uncertain market landscape, this is a great advantage for our Otters and their precious PEARL Chests. If this sounds great to you too, check out our Discord below. We’d love to show you around some more!
Until then,
app.otterclam.finance
Discord: discord.gg/gRJDX5NXFA
www.reddit.com/r/OtterClam/
