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Clipper's Strong Fundamentals

Written by

Jeremy Coffey

Published on

October 11, 2023

Clipper's Strong Fundamentals

Shipyard Software built ClipperDEX to create value - lots of value. In the two years since Clipper’s launch the DEX has notched up milestone after milestone, demonstrating its worth to key stakeholders and signaling a fruitful future for AdmiralDAO.

The State of Play

Clipper's updated Analytics Dashboard

One month ago the Clipper community, through AdmiralDAO, took the helm of Clipper to propel the project forward to its next phase of growth. The challenge going forward is to translate the significant value Clipper generates for its dedicated fans into value for a broader swathe of DeFi users. What we’ve seen these past 30 days is inspiring. The community built proposals to grow the DEX’s available users by by expanding to Mantle Network. It is also considering multiple options to attract more liquidity to Clipper DEX, which has already yielded a passed staking proposal and an ambitious referral program with Fuul, Web3’s leading affiliate marketing tool.   

Not to be lost amidst a whirlwind month for the DAO and Clipper are the fundamentals that underpin the value Clipper creates. Clipper has massive potential to redefine how LPs invest in Blue-Chip crypto assets and how traders can move those assets with less friction at lower costs.

The Clipper team has recently rolled out a totally revamp Analytics page that speaks to the core stakeholders of the DEX - LPs, Traders, and the DAO.

Liquidity Providers See Higher Returns

Liquidity is the lifeblood of any financial system. For too long simple DEX architectures have meant LP gains are eaten away by an array of trading bots, leading to net LP losses once impermanent loss is factored in. In fact, recent reports show that more than 70% of traders on other DEXs are bots! The math is simple. If liquidity providers see negative returns they will leave and DeFi will die. But Clipper fixed this for the pairs that matter most. 

Clipper only makes trades that lead to LP gains. That is one reason why Clipper’s APY on Blue-Chip crypto assets beats comparable pools like Curve’s Tricrypto2. 

Clipper's updated Data page now compares APYs in real time with Curve's competing Tricrypto

Clipper’s updated dashboard will bring in other comparables over time, but the story won’t change. So long as other DEXs get their trading volume from bots, LPs will lose. 

Traders Get Better Prices

Clipper was launched on the simple premise that real human traders in a p2p marketplace should be able to exchange their crypto assets on a free and fair market. Free from centralized controls, fair because bots aren’t distorting costs. Comparing Clipper to 0x, an aggregator that doesn’t route trades through Clipper, paints a telling picture. 

In data captured over two weeks the Shipyard team analyzed two types of common trades, ETH -> USDC and USDC -> ETH. As shown in our Analytics dashboard, Clipper offered traders better prices on both legs of that trade more than 94.2% of the time. Clipper won at least one leg a further 5.6% of the time. Meaning that in only 1 trade in 100 did Clipper lose both legs. 

Clipper wins both legs of ETH<>USDC trades vs 0x 94% of the time

Clipper’s gas-efficient, human-optimized architecture is superior to its competitors for PAIRS LIST. 

AdmiralDAO Builds Revenue

Clipper’s impressive results for LPs and traders mean it is a source of net revenues for AdmiralDAO. 

Clipper’s updated Analytics dashboard now includes a summary and detailed view of DAO revenues generated by Clipper. This gives DAO members - both current and potential - a sense of Clipper’s growth trajectory and the DAO’s subsequent ability to take on even more ambitious DeFi projects in future.

Clipper's Analytics page now reports DAO revenues

SAILing Away

One reason AdmiralDAO rewarded active members of the Clipper community in its airdrop last month is because it saw the creative potential of that community at work. Over two years, four adventures, dozens of product tests, and hundreds of help tickets the core of the Clipper community demonstrated its core values of knowledge, camaraderie, and  playfulness. For the DEX, its users, and AdmiralDAO this means the future has never looked brighter. Equipped with competitive APYs, a truly free and fair marketplace, and positive DAO revenues there’s no ceiling on how far Clipper can grow.

Written by

Jeremy Coffey

Published on

October 11, 2023

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