What is Clover Finance?

Clover Finance (CLV) is a substrate-based, multi-chain infrastructure compatible with EVM networks and blockchains focusing on multi-chain scaling and deployment. The CLV infrastructure partly functions as a parachain in Polkadot’s ecosystem, designed to scale applications built for multi-chain interactions.

To achieve its function, the underlying infrastructure for the CLV project consists of Substrate technology, Flutter framework, and the Nominated Proof-of-stake consensus mechanism. This would allow the project to provide such features as peer-to-peer (P2P) transactions, governance activities, consensus mechanisms, and more.

The CLV ecosystem consists mainly of the CLV Chain and the CLV wallet, a comprehensive cross-chain wallet capable of interacting with DeFi, metaverse, and gaming projects.

History of the Clover Finance Project

The Clover Finance project started in May 2020 to solve problems surrounding interoperability and blockchain compatibility. The core founders of the project are Viven Kirby, Norelle Ng, and Burak Keçeli. In February 2021, the CLV project participated in the summer 2021 CoinList Seed batch and was listed as a Winter 2021 alumni.

In the same month, Clover Finance raised $3 million in a seed round funded by Polychain Capital, Hypersphere Ventures, and Divergence Ventures. By April of the same year, the project conducted multiple CLV token offerings on Coinlist, raising $38.9 million. And a final round in May 2021 that raised $7.5 million.

By July 2021, The token became available for trading on multiple exchanges, including Gate.io, Binance, Coinbase, FTX, Huobi, OKX, KuCoin, Bithumb Global, and MEXC. This led to the launch of its upgraded web wallet, which allowed social login to onboard inexperienced users.

Clover Finance won the 5th Polkadot Parachain slot in December 2021 to end the year, and a rebrand followed suit. This changed the project from Clover Finance to CLV, which stands for Connectivity, Legible, and Versatile.

By the end of 2022, the project introduced staking, a stable multi-chain wallet complete with ENS/DID Support, swapping, and support for multiple dApps on its CLV chain.

Core Technologies

Substrate Technology

Substrate technology is a development kit that allows developers to build blockchain applications. These applications can be designed to interact with other chains or stand alone while taking advantage of the security in Polkadot’s ecosystem.

The substrate development kit is a compilation of templates and libraries of open-source modules and nodes designed to speed up the development of applications. It allows developers to select a predetermined logic, build custom modules from reusable Rust codes, or design using low-level primitives.

Similar to the architecture of blockchains, substrate nodes consist of two components: the core client and runtime. The core client handles transaction requests, peer discovery, consensus, and responding to RPC calls. The runtime handles the business logic and state transition of the blockchain.

Flutter Framework

The Flutter framework is an open-source toolkit used to develop application user interfaces. The framework creates high-performing applications that run on all existing devices, whether Android, iOS, Linux, or Windows.

The framework consists of two types of widgets: Material Design widgets and Cupertino widgets. The Material Design widgets align with Google’s design language and specifications, while the Cupertino widgets implement Apple’s interface guidelines.

The Flutter framework is designed using the Dart language, which integrates a set of foundational libraries, layouts, platforms, and layers. These components are customizable, optional, and replaceable.

The framework includes plugins, animations, paintings, gestures, characters, and other services like in-app payments and Apple authentication.

The flutter framework was utilized to design an easy-to-use yet high-performance interface for applications built on the CLV chain and wallet.

Nominated Proof-of-Stake (NPoS)

The NPoS consensus mechanism is a variation of the popular proof-of-stake mechanism, but it is designed for substrate-based blockchains like Polkadot and CLV. Unlike traditional PoS systems that depend heavily on validators, the NPoS system depends on validators and nominators.

In a traditional PoS system, new blocks are created by validators chosen based on their tokens held, not computational power or reputation. This results in the wealthiest validators holding all the power in the network. For proponents of decentralization, the PoS system eventually results in power centralization with a limited number of validators in control.

The NPoS system introduces nominators to the consensus mechanism. As validators are selected to produce new blocks, nominators are token holders who approve candidates by backing them with their tokens. The more nominator tokens a validator has, the higher the probability they would be chosen to produce new blocks.

The system also ensures those more invested in the ecosystem are given more power, as malicious activities could cost them assets.

Features of the CLV Ecosystem: CLV Chain, CLV Wallet and Wallet Talk

CLV Chain

Source: CLV Website

The CLV chain is designed with a multi-chain architecture for cross-chain interoperability. The CLV chain consists of the CLV mainnet or M-Chain and the CLV parachain or P-Chain.

The CLV mainnet is the main chain of the CLV project used for governance activities and exchange purposes. The CLV token was launched on the M-chain. Although the project allows users to freely conduct cross-chain transactions on Ethereum, Binance chain, and other EVM chains, CLV tokens can only be staked on the M-chain.

The CLV parachain is a smart contract chain built with EVM compatibility. The P-chain is connected with Polkadot’s mainnet. This allows developers to migrate their smart contract projects from an EVM chain to the P-chain. As a parachain in Polkadot’s ecosystem, the P-chain takes advantage of the existing security mechanisms in the network.

The P-chain is designed to have lower gas fees and higher throughput, capable of conducting 1,000 transactions per second (TPS). This is aimed at encouraging developers to launch projects on CLV’s multi-chain.

CLV Wallet

Source: CLV Website

The CLV wallet is a multi-chain application that supports substrate projects. The CLV wallet is designed with the Flutter framework for interacting with decentralized applications (dApp).

The self-custodial wallet allows users to import accounts using mnemonics, seed phrases, and keystones. The wallet is protected by Sr/Ed25519 encryption to keep assets safe. It also supports cross-chain transfers for tokens and NFTs.

Aside from substrate-based projects, the CLV wallet supports transactions and NFT assets on Ethereum, Binance chain, Fantom, Polygon, Polkadot, and Solana. The wallet allows users to manage their assets on multiple chains without holding various wallets.

Wallet Talk

The Wallet Talk feature is a chat protocol for Web3 users to communicate in real-time using a peer-to-peer network. It works on the CLV encrypted communication protocol (CECP).

The feature allows users to send messages, receive airdrops, send tokens, and conduct NFT transactions across multiple blockchains. It offers end-to-end encryption, an infrastructure for increasing security and cross-platform compatibility.

The project prioritizes user experience, so its interface is designed to be easy for both newbies and experts. The feature also integrates with the CLV wallet, enabling seamless communication between CLV users, decentralized applications, and developers. It also provides real-time access to information and support not limited to the user’s blockchain.

What is the CLV Token?

The CLV token is the native token of the CLV mainnet, used for conducting transactions and rewarding ecosystem participants. It is also used to stake in the validator infrastructure and nominate node validators.

The multi-chain token can interact with four forms: an ERC-20 token, a BEP-20 token, a substrate native token, and an EVM token on parachains. Its design replicates the inflationary nature of Polkadot’s token, and it is set to rise between 2.25% and 10% annually based on the number of tokens staked.

The token has a total supply of 1 billion tokens, with 803 million in circulation. Of the total supply, 15% is allocated to public sale, 20% each for incentivizing ecosystem participants and parachain offerings, 12% for the CLV Foundation, 10% for the team, another 10% for early backers, 7.5% for marketing efforts, 2.5% for private sale, and 3% as a grant for contributors.

Is CLV Token a Good Investment?

The CLV project aims to bridge the gap between blockchains, allowing users to move their assets more efficiently. This feature is currently valuable in the crypto space, and its utility is bound to improve as projects get developed and launched on multiple chains.

The CLV token, which is the native token of the project, allows users to participate in securing the network through staking and nominating validators. It also allows users to have a say through its governance features. The CLV wallet is positioning itself as the go-to application for DeFi, gaming, and metaverse activities, which will improve and scale over time.

The CLV token allows users to stake and earn passive income while having a say in the long-term direction of the project.

Risk Analysis

Advantages

The CLV project solves the issue of fragmented blockchains by allowing users to move cryptocurrencies between different networks. It also targets the growing areas of DeFi and Metaverse applications while leveraging Polkadot’s security infrastructure.

It has a user-friendly interface, designed with ease of use in mind, potentially attracting new users and increasing the overall adoption rate of the project.

Disadvantages

CLV’s long-term success remains to be determined as it is a relatively new project competing against more experienced players. The CLV project needs to offer and maintain unique value propositions beyond interoperability to stand out.

The underlying technology involving Substrate, parachains, and different token forms can be complex for some users. This could lead to loss of assets for new users who, in error, could send a BEP-20 token to an ERC-20 token address.

Challenges

The CLV project would need to build a community of developers and users to succeed. Although the CLV project has impressive features, it is a part of the crypto space and is subject to space price volatility.

Another challenge can be the evolving regulatory framework of the space. Adapting and complying with these regulations can be costly and tasking.

Competitive Analysis

the CLV project aims to create a foundation for cross-chain compatibility between DeFi applications on different chains. It focuses on user experience and simplifying the development of dApps. The Moonbeam project, on the other hand, focuses on providing an Ethereum-compatible smart contract platform with enhanced interoperability across different blockchains.

CLV provides the substrate and flutter frameworks with a multi-chain wallet to speed up the development of EVM-compatible applications. While Moonbeam provides full Ethereum compatibility, making it easier for developers to migrate from Ethereum to the Polkadot ecosystem.

Clover Finance emphasizes combining ease of use with interoperability to build its community, and Moonbeam is capitalizing on both Ethereum and Polkadot’s existing developer base to grow.

How Can You Own CLV?

Users can follow a simple process to own CLV tokens and become a part of the CLV ecosystem.

Setup a Wallet

One way to own CLV tokens is to purchase them through an exchange. For this, the user must create a Gate.io account, complete the KYC process, and add funds to the account to buy the token.

Utilize the CLV Tokens

Once users have acquired CLV tokens, they can explore the CLV ecosystem by conducting cross-chain transactions, staking, and participating in governance activities.

Take action on CLV

Users can trade the CLV token here.