Clipper or DEX for the working class[Eu]
This article was written for easy reading by an English-speaking audience, the original is in Russian https://teletype.in/@sviche/Clipper
What is the Clipper and what does it have to do with pirates?
Clipper is a specially designed DEX for ordinary traders.
Most of the current DEX is made in such a way that the most important thing is the volume of trades in dollars. This race for volume is often won by the big players (whales) and their automated trading software, which only brings harm to the average trader, because of the ability to manage the market (especially felt on highly volatile tokens or simply shields.
On CEX the situation is no better, they were also created for the sake of large volumes, as a result of which ordinary users have to pay 10 times more for the commission.
DEX is a decentralized exchange, i.e. tokens are stored outside the exchange (Uniswap, dYdX2, Pancakeswap)
CEX - centralized exchange, on the contrary, tokens are stored in the wallets of the exchange(Binance, Okex, Kucoin)
The Clipper is exactly the opposite of this approach
It is designed for regular traders and its goal is to optimize trades up to $10k as much as possible.
This is achieved by limiting liquidity and mitigating intermittent losses.
Limitation of liquidity
Most DEXs want as much liquidity as possible to reduce slippage on large trades, but after a certain point, more liquidity no longer provides any additional benefit for smaller trades.
Worst of all, such DEXs charge higher trading fees in order to attract larger volumes of liquidity.
Ultimately this benefits whales, but ordinary users suffer from it, swapping 0.3ETH with 0.2ETH commission
Clipper on the other hand offers us limitation of liquidity in 20k$, that according to mathematical calculations will be profitable for deals <10k$, respectively whales with 10k$+ deals will not profitable to make trades, there are plenty exchanges convenient for them, clipper will accept them in its family of pirates, only for more money.
Mitigation of non-permanent losses
We won't go into detail, but let's take an example:
The market fell by 1%, in the original pool of Clipper it will create an opportunity for arbitrage in the amount of $ 1kk, in the case of another DEX with a large liquidity, it will already be $ 100k, with a total pool size of $ 1kkk. Simply put, Clipper is more protected from arbitrage and large speculators.
What does this have to do with pirates?
Here's a quote from one of the admins:
I think Jack Sparrow is a fun characterization of the defy-degenerate culture. And pirates fit the theme of ships. Also, even though they obviously did a lot of bad things in their day, the pirates were also one of the first experiments in decentralized governance. Check out this article: https://www.peterleeson.com/an-arrgh-chy.pdf
Clipper Roadmap
Phase 0 (Q2 2021): Shipyard opening
- Code development
- Writing a technical document
- Creating official community channels (Website, Twitter, Discord, Medium, Telegram)
Phase 1 (June 22, 2021): Water testing
- Providing a starter fund
- Performing searches for errors and publishing them
- Completing Solidified and Quantstamp audits
- Creating an initial pool of $1 million (potential exploit bait) with 5 assets (wBTC, ETH, DAI, USDC, USDT)
- The form controlling the DAO is controlled by signers with multiple signatures.
Phase 2 (Q3 2021): Sail installation
- The official launch of the Clipper DEX
- Stabilize prices and profitability by launching a Clipper LP whose participants are selected based on technical expertise, ecosystem value, regulatory considerations and community support.
- Accept additional LP contributions
- Releasing a master control token
- The beginning of the transition from the DAO multi-sig management format to full community management.
During this phase, the project plans to expand its platform offerings in DEFI, and new assets may be added to Clipper's liquidity pools.
It is also possible to increase the limit of the pool (for example 100k$)
As the developers themselves say, "Not every project has to offer everything at once," this means that the project plans to develop further, after achieving the goals written above.
Maybe they do not know yet, maybe they are not confident in the feasibility of ideas, maybe they do not want to reveal future ideas, in any case, you can see their desire and persistence - the desire to do quality project
Project Bakers
Speaking of investors, things are pretty good here.
The $4mn Shipyard(Clipper) investment round was led by Polychain Capital with participation from 0x Labs, 1inch, DeFi Alliance and Quantstamp as well as other prominent investors such as MetaCartel DAO, Robert Leshner and Tarun Chitra of Robot Ventures, FJLabs and Naval Ravikant.
Polychain, Nascent, Three Arrows Capital, Electric Capital, LD Capital, IOSG and other angels contributed an additional $17 million to the Clipper liquidity pool.
Investors and the amount of money raised, as always tells us about the serious intentions of the project, the experience of the team and their ability to implement ideas, thanks to the amount of money raised (who better than tir1-2 funds know about it).
Ordinary users should be counted.
If we really believe in the future of our crypto industry, then we should make or support projects that are first and foremost focused on ordinary users.
MassAdoption will come to crypto sooner or later, I believe it and so do Clipper, they make product for people, at least for that, I think we should respect their product and support it in every possible way.
That's the end of my article, I hope you liked it and that it was really useful, I'll attach the official and useful links below.
In this article I have not analyzed possible earnings from the project (retrodrop, activity, etc.), if you are interested in it, you can look at the article one good man, but remember that the Clipper through translator translates as "shearing machine", so do not know, they shave their system whales or you workers wanting to earn something.