ClearDAO AMA Transcript

"Clear enables anyone to create custom derivative products. "

By
BSCNews
on
December 8, 2021
Category:
AMA

Stephanie (BSC.News)

Hello everyone and welcome to the AMA with ClearDAO! Today we have Alpha the Core Contributor of ClearDAO joining us to talk about their exciting new project. Great to have you here :)

Alpha

It's great to be here with the BSC News community. My name is Alpha. I am a core contributor of ClearDAO.

Stephanie (BSC.News)

Great! So how this will work is, the AMA will consist of two rounds. The first round will be us going through the questions that I had prepared for you beforehand. And then the second round will be a community round where I will open up the room to allow questions to come in. The second round is also where we will select the two winners of our giveaway

We will dive right into the questions!


1.Please introduce yourself and the team behind ClearDAO.


Alpha

My name is Alpha. I am a core contributor of ClearDAO.

We are a team of 20 full time members, with professional background in traditional finance, specifically flow and structured derivatives sales and trading, blockchain technology and traditional media. Many members in our team are seasoned participants in the crypto industry, with experience in early stage investments, helping projects on marketing and community, and directly involved in the building of technology infrastructure.

Stephanie (BSC.News)

Well awesome! Sounds like you guys have a great team so let's talk about the project itself


2. What is ClearDAO and what’s the vision of your team?


Alpha

ClearDAO is tackling the DeFi derivatives space, which as of now hasn't really taken off. But we expect DeFi to repeat what traditional finance has gone through, and eventually the derivatives market size will be much larger than the spot market.

Based on our observation, there are currently 2 main problems that are preventing DeFi derivatives from getting traction. The first problem is that most DeFi derivatives projects today, they are putting too much focus on their own platforms. These platforms offer exchange traded derivatives, which in our opinion are not what the users want.

What makes derivatives attractive to users is the bespoke aspect, which tailors to the needs of the buyers. This is quite obvious in traditional finance where OTC derivatives market size is way larger than exchange traded derivatives.

We are taking an entirely different approach to DeFi derivatives. Instead of exchange traded products, we are offering bespoke products. Instead of focusing on building one exchange, we are focusing on building the infrastructure that allows for multiple exchanges to build on top of it.

ClearDAO is building a DeFi derivatives SDK that enables developers to easily create bespoke derivatives and launch exchanges.

Developers from all over the world should know what derivative products are popular in their regions. They can use the Clear SDK to quickly build these derivatives and launch their own exchanges. By using the solution provided by ClearDAO, we can also introduce our ecosystem market makers and liquidity providers to our ecosystem exchanges. This can solve a major obstacle with new exchange platforms that is the initial liquidity.

We have a multi-chain strategy in place since the inception of the project. We are prioritizing Binance Smart Chain, and will also support Arbitrum, Solana and Ethereum in the near future.

Then we will evaluate the next batch of blockchain ecosystems to support.

Our vision is to build a future where all DeFi derivatives are created, traded, cleared and settled on a network of blockchains powered by ClearDAO.

Stephanie (BSC.News)

Okay great! So to dive even deeper into that


3. Tell us about the Clear SDK.


Alpha

The Clear SDK is our flagship product. It has 3 main components:

1. Derivative workshop.

This is where developers can create bespoke derivatives with a lego-style mix and match approach.

Start by choosing the underlying asset, it can be a single fungible token (such as BTC), or a basket of tokens (such as 70% BNB + 30% ETH), or even an NFT collection (such as the Crypto Punk collection).

Then choose the derivative that you want to create. We are starting with barrier options and structured notes.

Soon we will add support for perpetual futures and CDS (coin default swap).

Then we will explore adding more option types (vanilla, binary and more) and other derivatives such as TRS (token return swap).

Note that for each derivative product there are multiple parameters that can be adjusted.

For example in our barrier option template, developers can specify whether the option is call or put, strike price, maturity, barrier levels, and whether it is knock-in or knock-out.

Our goal is to cover as many derivative types as possible, so eventually if you can dream up a derivative contract, the Clear SDK can build it out.

Then theoretically if you want to build a DeFi derivative project, there is no reason not to use the Clear SDK.

2. Open marketplace.

This component contains the open source code for white label exchanges.

We have already coded an automated trading platform, as this format is more familiar with DeFi users.

Going forward if there is enough demand for an order book style trading platform, we can explore coding that out as well.

3. Risk Management Tools.

We want to offer quantitative risk exposures to our users, so they can better manage portfolio risks and perform macro hedges.

When trading in the spot market, usually knowing the current prices and total value is enough for most users.

But this is not the case in derivative trading, especially for the purpose of hedging risks.

If you are trading options, you will want to know the greek risks, and if you are trading fixed income derivatives, you will want to know the duration and convexity risks.

Our goal for the longer term is to offer these quantitative risks to our users and even metrics like VaR (value at risk) so our users can make informed decisions and not put on a trade and hope for the best.

Stephanie (BSC.News)

Thanks for the explanation.


4. Can you tell us about your go-to-market strategy?


Alpha

Our flagship product is the Clear SDK that enables developers to quickly design derivative and launch trading marketplaces. Our main business model is B2B2C.

There are too many crypto projects coming out every week.

We know that just by making the SDK available isn't going to attract developers.

So we will be launching the very first exchange built using the Clear SDK.

This exchange serves 2 purposes.

The first purpose is to provide actual derivative trading to our users.

They can purchase derivatives to enhance potential returns or to hedge risks.

Through actual user activities, we can collect feedback to improve our SDK further.]

The second purpose is to showcase what the Clear SDK can do.

We believe having a live exchange can better attract developers to actually give our SDK a try.

Once our SDK and exchange is live, we will be working with ecosystem developers to help them through building out their derivative marketplaces.

We are actually in discussion with a Korean team right now.

So it is very likely that you will see a Korean derivative marketplace coming out in 2022 that's powered by ClearDAO.

Our SDK will be made available to the public, so anyone can take it and build projects with it.

We will also work with select developer communities and teams to launch derivative marketplaces that is up to our quality standards.

Stephanie (BSC.News)

Oh wow Korean derivative marketplace! That's very exciting and innovative.



5. How can developers benefit from using the infrastructured built by ClearDAO?


Alpha

The benefits are massive.

Coding out a derivative exchange from scratch and do it well, takes a team of experienced developers.

With the Clear SDK, we are enabling developers with 2 years of professional experience to easily launch derivatives exchanges.

This not only lowers the experience required, it also reduces development time.

As mentioned earlier, a common hurdle for new exchanges is the initial liquidity.

An exchange without liquidity is not able to attract users, and an exchange without users is not able to attract liquidity providers.

This is a tough problem to solve, and many new exchanges never survive this phase.

ClearDAO has forged strategic partnerships with world class market makers and liquidity providers.

Kronos Research, Redline, VRM are all our ecosystem partners.

There are more top tier confirmed partners that we will unveil in the near future. 😉

Our partners are committed to inject initial liquidity to our ecosystem exchanges.

This effectively alleviates a major headache to our ecosystem developers.

With much of the coding and initial liquidity out of the way, developers can spend more time on marketing and community building.

ClearDAO will also provide marketing support for our ecosystem projects, so they will be starting community and marketing with an initial base, and not from zero.

We make building DeFi derivative platforms super easy.

If a team has a good idea, with entry to mid level coding experience, they can make it happen with the Clear SDK.

As mentioned earlier, we identified 2 problems preventing DeFi derivatives from going mainstream.

The first problem can be solved by incorporating customization into derivatives, which is exactly what the Clear SDK is for.

The second problem has to do with the participants in DeFi.

They are not like the professional and sophisticated investors on Wall Street who know derivatives inside out.

Derivatives are unfamiliar to most DeFi participants, who really either don't have time or don't bother to learn about derivatives.

To get the DeFi crowd interested in derivatives, it is very likely that extra incentives are needed.

This could be accomplished by adding elements of farming, NFT, or gaming into derivatives to make the overall product package attractive or user experience fun.

Our ecosystem developers will be spending less time coding derivative products and exchange functionalities.

This means they will have more time to think about the creative ways to incorporate derivatives with other elements to make DeFi derivatives desirable.

Stephanie (BSC.News)

Definitely! moving on...


6. Please introduce the governance aspect of the ClearDAO ecosystem.


Alpha

CLH is our project token, it is mainly used for governance.

Our governance system is expected to be online in 2022, where DAO members can create proposals to be voted on by all token holders.

The Clear SDK is the flagship product of our project.

Once we have developed everything laid out on our roadmap, our token holders can decide how to further improve the SDK.

This can be adding support for a specific derivative product, a new exchange functionality, or deployment to new blockchain ecosystems.

In addition to steer the development progress of the Clear SDK, token holders can also vote to adjust the parameters on the marketplace that is managed by us.

This can include changing the trading fees and improvement on the UI and more.

Besides using the token for governance purposes, the token can also be staked for yields.

We are also looking to add more utilities to the CLH token in the future.

The ecosystem marketplaces launched by 3rd party developers with our support, their exchanges should incorporate use cases for the CLH token.

So as our ecosystem matures, CLH will have more utilities and thus more value. 🚀

Stephanie (BSC.News)

Cool! Last but not least


7. Any exciting news you would like to announce here today?


Alpha

of course!

ClearDAO is an ambitious project.

We have been building since early 2021, and have lots of unique technologies created.

Our dev team is currently fine tuning the details and making sure everything is functioning as intended.

Our IDO/IEO is currently scheduled for Jan 2022 (this is a floating target based on market condition at the time).

For the next several weeks we will be making some BIG announcements.

If I were you, I will join the ClearDAO telegram (@cleardao) community and stay up to date.

The public alpha version of our barrier option marketplace is currently on BSC Testnet. 🔥

Anyone can visit  and try it out.

For starters, we have a short guide to assist you along the way.

BSC testnet guide:

I would encourage everyone to give it a try.

Not saying we will definitely do an airdrop to reward early adopters... 🤫

Once you have tried it, please be sure to join our telegram group and let us know what you think of the public alpha.

We would love to hear from you.

Stephanie (BSC.News)

How exciting! Would you be able to provide us with other social media links (if you have more) so that our community could follow?

Alpha

please see below for our project links:

Website:

Telegram:

Twitter:

Medium:

Stephanie (BSC.News)

Awesome! If you haven't already make sure to go and check out ClearDAO everyone! Super exciting project that you don't want to miss out on :)

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