Clip Finance Strategic Development

General
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Introduction

Devs do something!™

This proposal outlines potential development paths for Clip Finance, focusing on strategic priorities and product improvements. The goal is to gather feedback and consensus from CLIP token stakers on the best direction moving forward.

Current Landscape and Challenges

Clip Finance operates in several key areas:

  1. Yield Generation:
    Clip Finance continuously develops new strategies to generate yield for users, often requiring custom smart contract development. However, in the competitive DeFi space, many strategies are easily replicated, with protocols incentivizing with their own token for high short-term APY to attract liquidity. Clip Finance’s strategies include providing liquidity to various protocols, compounding rewards, leveraged lending over money market strategies, and concentrated liquidity management through proprietary range management technology.
  2. Smart Deposits:
    As a universal liquidity coordination platform, Clip Finance allows users to allocate assets across any protocol and chain with a single click. We handle all the steps for the user, including selecting the best bridge and swaps, and optimizing cross-chain liquidity.
  3. B2B Solutions:
    Clip Finance also provides B2B services, enabling other protocols like DEXes to integrate automated liquidity management solutions into their platforms. This allows us to manage liquidity ranges for users. Additionally, we offer token market-making services to optimize token price harmonization across CEXes and DEXes. Learn more about our B2B services on our ecosystem page.
  4. Tokenomics:
    A key but often under-explained component is the role of the CLIP token. As we are unlocking CLIP token only when TVL grows, this has never been done by any other protocol. More emphasis is needed on explaining how the token generates value in the protocol, and how depositors benefit from additional APR when receiving CLIP tokens.

Strategic Development Paths

Grow TVL

Clip Finance has multiple revenue-generating areas. Attracting more TVL with new strategies increases revenue by charging performance fees on yield earned. Here are a few avenues to explore:

  • Expand LRT Strategies:
    We can develop strategies around Liquid Restaking Tokens (LRTs), capturing mercenary capital from staking and leveraging low-risk, high-reward opportunities.
  • Deploy on New Blockchains:
    Expanding to new blockchains requires operational resources but offers growth potential. By researching, deploying strategies, applying for grants, and partnering with key opinion leaders (KOLs), we can grow our presence in new ecosystems.
  • BTC Strategies:
    As Bitcoin’s utility in DeFi grows, developing strategies for BTC assets will attract long-term holders looking to unlock new yield opportunities.
  • Unique Strategies for Solver Pools:
    Explore new, proprietary strategies linked to our decentralized solver pools. More information is available in our litepaper: Clip Finance Decentralized Solver Network Litepaper | Clip Finance

Increase Transaction Volume

Clip Finance earns fees on every transaction completed via cross-chain one-click deposits. This feature allows users to bridge and swap assets without the hassle of manual steps.

Our early version of smart deposits is live, but there’s much more to improve. The future of DeFi lies in intent-based transactions, which we believe will onboard the next billion users by simplifying blockchain interactions.

We have multiple areas that smart deposits should be developed. First is keep improving on our front-end for enduser smart deposits and show value for users doing their yield farming on Clip Finance.

While in parallel we should be developing SDK and extensions for existing wallet connections (i.e Rainbow Kit) where any protocol can add to their front-end another button or widget that would allow their user do a 1-click deposit

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The interface serves solely as an illustrative example of how a potential 1-click deposit integration with Clip Finance might appear. This mockup does not represent a confirmed partnership or integration with Lido Protocol.

With these improvements, Clip Finance aims to become the go-to platform for swaps, bridging, and cross-chain zaps into yield strategies, all through a unified interface.

Increase B2B Customers

  1. DEX Managed Pools:
    By integrating Clip Finance managed pools on DEXes (like Lynex), we aim to demonstrate superior APYs compared to competitors. Details are available in our tech paper.
  2. Market Making and Arbitrage Solutions:
    We see that this industry has mostly legacy market makers that often underutilize concentrated liquidity strategies, losing money for token issuers. Clip Finance’s token market-making and arbitrage services help protocols maximize their token performance across DEXes and CEXes. Read more about our arbitrage revenue share opportunities here
    Notion – The all-in-one workspace for your notes, tasks, wikis, and databases.

While our DEX market-making brochure is here

Clip-Finance-Market-Making
Clip-Finance-Market-Making1280×1449 323 KB

Improve Clip Finance

As always with every new feature there is a balance in how “perfect” it should be done in terms of UX, functionality, and information. Thanks to our development team who are iterating really fast on all new functionalities we have made a big progress over the last 6 months and have grown from simply a yield optimizer into something much bigger.

We want to hear from the community about what features or aspects of the platform need refinement. Additionally, we’re working to better showcase the value of CLIP tokens and clearly display the extra APR users earn from staking.

Impact Assessment

We’ve outlined several directions above. Next, we need to assess each path based on:

  • Expected benefits.
  • Potential risks or challenges.
  • Alignment with long-term goals.

This section will be updated to provide more specific details as the proposal evolves.

Voting Methodology

CLIP token stakers will vote by ranking the proposed strategies in order of priority. Each staker can allocate votes across multiple options or assign all votes to a single strategy. The strategy with the highest weighted votes will be prioritized for development.

Timeline

Voting will be open for two weeks, with the starting date announced soon. Results will be released shortly after, and the chosen strategy will be implemented over the next quarter.