CLAWS Explained: Scratching the Surface of Sett-Vault Assets
What started off as rumor is now becoming reality. The community heard whispers of a stablecoin coming to the Badger ecosystem and dubbed the mysterious project “claws” — a name which has stuck and is now the official title. $CLAWS is coming, so we’re going to explain what it is, how it works, and what you can do with it in this article. Let’s get started!
CLAWS is actually more accurately described as a “yield dollar” than as a stablecoin. If you are at all familiar with products built on UMA, the concept of yield dollars is familiar. Essentially, a yield dollar is a collateralized asset with an expiration date. Once the yield dollar expires, it can be redeemed on the UMA protocol for $1 worth of its collateral. Until expiration, the market determines the price of the asset — but generally it should approach $1 as expiration nears.