December 7, 2022: $clevUSD 🧠💵
CLever and Frax Finance launch leveraged stablecoin
Disclaimers! Author has exposure to tokens and ponzus discussed in this article, including $CRV, $CVX, $FXS, $CLEV, $FRAX, $USDC.
Hide yo’ kids xor hide yo’ 2d waifus… $clevUSD is here!
:Pause for thunderous applause:
OK, so what exactly is $clevUSD, and where does it stack up against other stablecoins?
If you’ve followed CLever, you’re surely already familiar they are experts at leverage. Their flagship offering was giving your your Convex yields now, then repaying your position gradually as you wait.
CLever is teaming up with the algostable geniuses at Frax to provide a similar concept with dollar pools. Deposit into any supported Frax pool, and borrow up to 30% immediately as $clevUSD. You use your $clevUSD however you like, while your position automatically repays itself on the interest.
Could it be big? Surely.
Consider the current market cap of stablecoins from DefiLlama:
Even in the unlikely event no more Frax ever gets printed, with an existing market cap of a billion, there’s potential for up to nine figures of $clevUSD to be minted. We could see it could grace the top ten if all goes well for the team. I mean, surely it deserves better than the current tenth place offering, the ignominious $UST.
It all hinges on whether anybody will want to mint it. So, what might you do with your shiny new $clevUSD? Their launch article offers some suggestions.
Of course, whales can loop this a few times and lever up before it becomes gas concerns render it impractical.
A destination of particular interest will be the related clevUSD/FraxBP Curve Pool. The pool has been launched, but not seeded. The team is promising to incentivize the pool for three months.
Will they be able to successfully bribe? Spoiler alert: Frax can do whatever it pleases.
