Clipper
Search…
Ethereum Liquidity Pool

Pool Size

Clipper's pool will initially be capped at $20m, because this mathematically corresponds to best prices on trades under $10,000 (the threshold at which higher slippage starts to outweigh lower fees). Over time, governance can choose to change the cap.

Asset Types

Clipper will only support 5 assets to start, wBTC, ETH, DAI, USDC, USDT. This will enable traders to trade ETH and wBTC against each of the three major stablecoins. Over time, governance can choose to add more assets.

Community Liquidity Program Overview

Background

We’re thrilled to announce that Clipper’s long-awaited community liquidity program (“CLP”), will launch on October 5, 2021!
Clipper’s liquidity pool needs to be fixed at ~$20M in order to offer the best prices for retail traders. While the first $17M was committed by institutional liquidity providers (ILPs) pre-launch, the final $3M has been reserved for Clipper’s community. This community liquidity program (CLP) is designed to let anyone provide liquidity to Clipper on similar terms as Clipper ILPs.

What Should Clipper’s Liquidity Providers Expect?

Clipper’s CLP participants, aka liquidity providers (LPs), can stake their funds in a liquidity pool and in return receive a portion of the trading fees accrued on the exchange. The trading fees you collect as an LP will be added to the overall value of your deposit and can be withdrawn at the same time as your initial stake. And, like all other liquidity programs, the dollar value of the funds participants eventually withdraw may be valued at more or less than their original contribution.
Clipper’s LPs may also be eligible for additional benefits (due to regulatory constraints, at this time we are unable to provide explicit guarantees, such as in regards to governance tokens).

What’s Different About Clipper’s CLP?

Clipper’s CLP differs from other DEX LPs in several notable ways. Many of our LPs will be glad to know that there will likely be less impermanent loss with Clipper’s CLP relative to other DEXs’, since Clipper relies on external price oracles to help guide pricing. Other key differentiators:
  1. 1.
    CLP participants are limited to one deposit of up to $10K To allow for as many liquidity providers as possible, participants’ liquidity contributions will be capped at $10K in USD value, denominated in one crypto asset.
  2. 2.
    Assurance Period If the community does not contribute the entire $3M within 90 days, then you are free to withdraw your initial funds in ETH, WBTC, USDC, USDT, or DAI, or as a proportional asset mix of your choosing. Otherwise, once $3M is contributed to the Community Liquidity contract, the funds will be deposited into the Clipper Liquidity Pool.
  3. 3.
    Lock-up period (until July 2022) Once in the Clipper Liquidity Pool, the tokens will be locked until July 2022 (roughly 9 months). This lock prevents users from withdrawing anything to ensure a stable pool. This is the same timeline as the ILP program.
  4. 4.
    Diversification via Mixed Asset Exposure Unlike some other liquidity programs, the real-time value of your deposit can fluctuate based on the prices of the entire liquidity pool (ETH, WBTC, USDC, USDT, and DAI) rather than just the original asset you deposited. This gives you an added level of diversification compared to other liquidity programs, which are often tied to a single asset or trading pair.
  5. 5.
    Flexibility via Mixed Asset Withdrawals Once the lockups expire, users will be able to withdraw their principal and accrued fees, which will be proportional to the fraction of the Clipper Pool their deposit represents. CLP participants are free to withdraw their funds in a single asset of their choice, or a combination of up to five crypto assets supported by Clipper. In other words, the assets you withdraw do not have to be the same asset type you deposited, which gives you an added degree of flexibility.

Why is Clipper’s CLP structured this way?

We’ve been in the DeFi space long enough to understand that DeFi users are generally put off by restrictions and mandatory lockups. However, the only way to ensure that Clipper can offer the best prices for trades valued at ≤$10K is to maintain a stable liquidity pool, which is what Clipper’s CLP is designed to achieve.
Essentially every other DEX on the market has placed no limit on how much liquidity you can provide, or when you can deposit and withdraw your funds. And it is precisely this lack of purposeful design that leads to suboptimal prices for most retail traders – a mathematically proven consequence of uncapped liquidity.
In the end, it all comes down to deliberate design.

Pool Security

Pool funds will be secured by a multisig contract. Clipper is fully audited.
Last modified 12d ago