What is CloverFinance?
Clover is a cross-chain DeFi bridge which is a substrate-based Polkadot parachain. The clover provides the ability to transact and navigate major blockchain networks simultaneously. For example, a developer working on the Ethereum platform can expand to the Polkadot system also.
Clover was introduced in 2020 with the aim of reducing the cost and efforts of the developers. Burak Keceli, Norelle Ng and Viven Kirby are the cofounders of Cover and wanted to bring decentralisation to the crypto ecosystem.
The foundational layer of the Clover simplifies the interactions for the non-crypto users and reduces the threshold for developers while generating returns for them.
- Clover is a cross-chain DeFi bridge which is a substrate-based Polkadot parachain.
- Clover was introduced in 2020 with the aim to reduce the cost and efforts of the developers.
- The foundational layer of the Clover simplifies the interactions for the non-crypto users and reduces the threshold for developers along with generating returns for them
Frequently Asked Questions (FAQs)
What is the blockchain system of clover?
The clover works in the following manner:
- Storage layer: This layer supports dApp data in distributed storage.
- Smart contract layer: This layer is responsible for handling cross-chain deployment and dApp calls.
- DeFi protocol layer: A range of DeFi protocols are enabled by this layer such as insurance, lending and swap. Also, this layer allows the developers to develop their DeFi protocols.
- eApp layer: The evolution of dApp to eApp is supported by eApp layer. eApp of the developers can be deployed on clover and network bandwidth, domain names and machines are not required while developing and deploying.
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Why is clover built upon substrate?
Clover is built upon top substrate, which allows clover to leverage the wide range of functionalities, that is, the developer is not required to develop from scratch but can use the tools that are provided by substrate.
The functionalities incorporate consensus mechanism, peer-to-peer networking, EVM implementation, governance functions to name a few.
With substrate, the time of development and implementation on clover reduces significantly. The scope of customisations is vast when making it compatible with Ethereum. Moreover, performance enhancement and safety are guaranteed.
What are the advantages of Clover finance?
In the DeFi world, Clover offers the following advantages:
- Quick access – the user is not required to go through the registration process or doing KYC.
- No central authority – The trading is not controlled by the third party; therefore, it is a peer-to-peer trading platform.
- Trustless – No central authority controls the system; therefore, token holders control the system.
- Faster and cheaper transactions – Since clover run on the Polkadot, the issues related to Ethereum are solved.
- Privacy – Since no personal information is recorded, therefore, no chances of leakage of personal details.
- Fairness – Wash trading and no fake orders can be conducted.
- Efficient – The efficiency is leveraged as cross-chain communication takes place on the Polkadot network.
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How Clover can be used?
- Earn rewards through the clover developed incentive programs.
- Transactions can be conducted in the marketplace and exchanges.
- Rewards can be earned while using the clover platform
- Stake to run nodes
- Great returns can be generated by the developers.
What is the governance structure of Clover?
The value of the clover is ascertained by the community of clover. By using governance smart contracts, the community can propose and implement changes in the platform. The governance structure includes
Proposal: This mechanism can be used for updating the system.
Voting policy: The token holders have the right to participate in the voting and one token is counted as one vote. With the completion of the proposal, the voters are rewarded.
Parameters of governance: Token holders have the power to change the parameters of governance in the DeFi environment. The parameters that can be changed are the percentage of tokens that can be burnt, tokens that can be used for staking, incentives with the success of the proposal, payment required to be made for a new listing to name a few.
Contract developments: Through this governance, the DeFi environment can be changed. The changes include the introduction of new functions, new protocols for smart contracts blockchain, and new elements in the DeFi ecosystem.
What is CLV token?
In clover finance, the CLV tokens is an asset that can be used for multiple purposes such as:
- Opt-in fees – CLV can be used for paying the gas fee and the clover platform provides the option to pay the gas fee with any token on the network.
- Governance – With CLV tokens the token holder gains the right to vote, elect the council members, introduce changes in the protocols.
- Validation – CLV can be used for validating the network.
- Treasury – The projects can be funded through the treasury.
- Nomination – CLV holders can nominate node validators through single-click deployment.
- Deployment – CLV can be used for deploying dApps and smart contracts on the clover network.
What are the main features of clover?
- EVM compatibility – Multi-chain indexing on Polkadot, Binance smart chain, Ethereum and Bitcoin feature is extended by clover. In a single streamlined platform, the user can search via accounts, transactions and blocks.
- Redistribution of gas fee – The dApp developers are motivated by clover by sharing the transaction fees with them. This motivation ensures the creation of a developer community that creates an innovative DeFi ecosystem.
- Identity-based fee – The discount on the gas is dependent upon the frequency of the activity on the network. This is the new feature that has been added to the platform. More gas fee is paid by the users with a lower number of transactions and vice versa also holds true.
- Cross-chain communication – Users of the clove can wrap, unwarp, send and receive assets across the Polkadot and Ethereum trustlessly. Moreover, there is no navigation between the platforms.