CloudBasePrice

(CLOUD)

CloudBase (CLOUD) is a decentralized, over-collateralized stablecoin native to the blockchain, specifically designed to maintain a stable peg to the US Dollar. It operates as a dual-purpose protocol, serving both as the platform for minting and managing CLOUD, and as a liquid staking protocol. Users can leverage the platform to mint CLOUD against collateral, effectively establishing a decentralized line of credit. Additionally, it enables users to stake assets for network security, receiving a liquid token (LCRO) that can be utilized in other DeFi applications.

Users stake CLOUD stablecoins into the CloudBase Stability Pool, making their capital available to absorb debt from liquidated collateralized debt positions (CDPs). In return, stakers receive rewards from two main sources: discounted collateral from liquidated positions and continuous CLOUD governance token emissions. The Annual Percentage Yield (APY) is variable, as it depends on the frequency of liquidation events and the rate of CLOUD token emissions, meaning it can fluctuate significantly.

CLOUD is the liquid governance token for the CloudBase protocol, meaning it can be freely transferred and traded. In contrast, veCLOUD, which stands for vote-escrowed CLOUD, is a non-transferable token. It represents voting power within the CloudBase governance system and is obtained by locking up CLOUD tokens for a specified period. The primary function of veCLOUD is to grant holders the ability to participate in on-chain governance decisions, influencing the future development and parameters of the protocol.

CloudBase has undergone audits by reputable security firms to enhance its safety. However, as with all decentralized finance (DeFi) protocols, inherent risks persist. These include potential smart contract bugs, which could lead to vulnerabilities, and economic exploits that might impact the protocol's stability or user funds. Therefore, users are strongly advised to conduct their own thorough research and understand the risks before engaging with the platform.

CLOUD rewards can be claimed manually at any time by the user. It's important to note that each claim transaction will incur a gas fee on the blockchain. Furthermore, CLOUD rewards do not automatically compound within the Stability Pool. For users to compound their position, they must manually claim their earned rewards and then redeposit them back into the Stability Pool. This two-step manual process is necessary to leverage compounding effects.

Users should primarily avoid two common mistakes. Firstly, always ensure you are using the correct network. CloudBase operates on the Base blockchain, and sending funds on incompatible networks (like Ethereum or BNB Chain) can lead to the permanent loss of assets. Secondly, be vigilant against phishing attempts. Fake websites are common in the crypto space, so always verify that you are on the official CloudBase URL before connecting your wallet or inputting any sensitive information.