DeFi is the talk of the town in the cryptocurrency and blockchain community as users are interested in the prospect of earning yield directly on the blockchain. Yield farming, staking and other similar concepts have established themselves as popular choices among cryptocurrency users. Clever DeFi has come up with its own take on this trend by creating a system where users can get rewards directly into their cryptocurrency wallet.
Clever DeFi is a very straightforward project in principle. Those who hold CLVA tokens in their Ethereum wallets receive interest payments every two weeks. The interest is paid in the form of CLVA tokens, and the payments are executed in a completely automated manner through a smart contract on the Ethereum blockchain.
The two-week periods between interest payments are called »cycles«, and there will be 888 cycles in total before CLVA token holders stop receiving their interest payments – the whole process will take about 34 years to finish.
Clever DeFi provides an alternative to other DeFi protocols, where users have to wade through confusing user interfaces and deposit their cryptocurrency into different addresses in order to participate. In contrast, all that’s required to earn yield on CLVA is to hold the token in an Ethereum wallet, and Clever DeFi’s smart contract takes care of everything else.
Those who will be holding CLVA for one year starting from the first cycle will see their CLVA holdings grow by a total of 307%. Of course, there are no guarantees that this will actually result in gains against BTC, ETH, fiat currencies or any other asset.
The CLVA token trades on the open market and the demand for CLVA will ultimately determine how the token will perform. However, the token is designed to give an edge to long-term holders as the interest payments to CLVA are effectively compounded. At the end of each cycle, holders receive an amount of CLVA based on the amount of tokens they already have in their wallet. By the end of the fifth year, those who held CLVA since cycle 1 will see their token holdings increase by around 600%.
Clever DeFi have created an analytics page where users can easily check the progress of CLVA’s supply growth, how many unique addresses are holding CLVA, the current distribution cycle, and other important metrics. The page also provides a calculator where users can see how many CLVA tokens they can earn starting with a selected cycle and token amount.
CLVA is a new entrant to the cryptocurrency markets, as its minting phase was just finished on March 3. In the minting phase, a total of 726.5 ETH was committed by users, which was enough to mint around 340,000 CLVA tokens. After the initial CLVA supply was minted, the token was made available for trading on Uniswap and P2PB2B, providing both decentralized and centralized trading options.
On Uniswap, there’s currently $955,000 in liquidity for the ETH-CLVA trading pair. As for the funds that the Clever DeFi team is using to provide liquidity on Uniswap, the team writes:
»Private Keys to the liquidity wallets are locked in a secure cloud operated service which is encrypted using cryptography. It cannot be accessed manually but instead is under a time-lock mechanism that will allow access to keys only after 12 months have passed; April 15th 2022.«
After hitting the market, CLVA found a bottom at about $4.20. The token proceeded to show a strong rebound, and peaked at $9.25. After a short consolidation, CLVA tokens are trading at about $8.14 apiece. However, the token has been trading for less than a month, and increased volatility is expected for any token that’s new to the market – depending on who you ask, this can either be viewed as a risk or as an opportunity.
Andrew is a writer that does most of his work on cryptocurrency-related topics. While he’s primarily interested in Bitcoin, he also follows major altcoins and the innovative ideas that new cryptocurrency and blockchain projects are bringing to the table.