The Research of ClearDAO
01. Project description
Decentralized Crypto Derivative Factory. ClearDAO aims to create an open protocol for all #derivatives, allowing users to freely assume the seller or buyer position and to easily create any financial derivatives with a controllable risk profile.
Website： https://cleardao.com
twitter：https://twitter.com/clear_dao
telegram：t.me/cleardao
02 Project Interpretation
2.1 Vision and Features
ClearDAO is an open protocol for DeFi derivatives, which enables users to control risk rationally and effectively. It aims to create a derivatives ecosystem, allowing users to freely assume the seller or buyer position and to easily create any financial derivatives with a controllable risk profile. To this end, ClearDAO exhibits the following core features:
• Open Derivative SDK
Highly adaptable SDK allows developers to create new derivatives. The SDK is the core product of the project. The ClearDAO team will keep adding support for more underlying asset classes and derivative templates to the SDK to expand its composability and expandability.
• Community Driven Market
The ClearDAO is designed specifically to invite community members to launch multiple trading platforms and build the ecosystem together. With different front end interface implementations and inclusion of additional elements such as gamification, the ClearDAO community as a whole will lead the next wave of DeFi that is the crypto derivatives space.
• Risk Management Library
Quantitative tools that implement a two-tier reserve pool system to provide dynamic risk management for derivative instruments. This new module provides trading platforms with enhanced stability while minimize the resources required.
2.2 Blockchain Architecture
As an open protocol for decentralized derivatives, ClearDAO will be built on Ethereum in the initial phase. It will later gradually support multiple mainstream public chains with an interoperability layer in later stages. The core layers of the ClearDAO system are briefed as follows:
• Public Chain Layer
This layer refers to the underlying infrastructure that provides ClearDAO the interaction interface to all the major public blockchains. It can extend to more chains to capture more users across different ecosystems and communities.
• Interoperability Layer
The interoperability layer comprises two parts, the customized bridges between heterogeneous public chains and general interface across the homogeneous chains such as EVM-based interoperability interface. This layer is mainly responsible for regulating the interactions between the upper ClearDAO layer and all the underlying public chains. It also houses the cross-chain L2 solution.
• Protocol Layer
The protocol layer refers to the ClearDAO, which is the core of the entire system. The protocol contains three main modules: derivative workshop, open market, and risk management library. The derivative workshop is responsible for the creation of open derivatives. The open market is a trading platform template to allow entry-level developers to launch trading platforms with their own brandings and identities. The risk management library is a set of quantitative tools to allow trading platform users and the platform itself to manage risks in a resource-efficient manner.
• Application Layer
The ClearDAO SDK makes launching trading platforms on the application layer simple. Developers can also use the SDK to construct derivatives that meet the needs of the market. It is even possible to use the SDK to build new applications that centers around decentralized derivatives.
03. economic model
3.1 CLH Token
The native digital cryptographically-secured token of the ClearDAO (CLH token) is a transferable representation of attributed governance and utility functions specified in the protocol/code of the ClearDAO, and which is designed to be used solely as an interoperable utility token on the protocol/network. CLH token provides the economic incentives which will be distributed to encourage users to contribute to and participate in the ecosystem on the ClearDAO, thereby creating a win-win system where every participant is fairly compensated for its efforts. CLH token is an integral and indispensable part of the ClearDAO, because without CLH token, there would be no incentive for users to expend resources to participate in activities or provide services for the benefit of the entire ecosystem on the ClearDAO. Given that additional CLH token will be awarded to a user based only on its actual usage, activity and contribution on the ClearDAO, users of the ClearDAO and/or holders of CLH token which did not actively participate will not receive any CLH token incentives.
3.2 CLH Token Distribution
CLH total supply: 1,000,000,000
04. investment organization
in the disclosure on the official website, dozens of project partners have been announced, covering mainstream categories such as asset issuance, DeFi, trading platform and tools, including Huobi Venture and NFVenture
05. project analysis
Decentralized derivatives signify the maturation of DeFi, and whether the explicit or hidden risks in DeFi derivatives can be effectively managed is the most important indication of maturity. Therefore, this paper proposes an open protocol that provides risk management for decentralized derivatives, and will assist users to control risks more effectively and more rationally. It aims to create an open protocol for all derivatives, allowing users to freely assume the seller or buyer position and to easily create any financial derivatives with a controllable risk profile.
