Clever Token CLVA - Scam or Not? Let’s look at the FACTS.

Clever DeFi has sprung up on the radar as new crypto to the DeFi scene with promises and guarantees of huge amounts of interest paid to CLVA token holders. In this article I will share with you only the facts without bias so that you can form your opinion if you believe the project to be legitimate and not a scam.

Big Promises of Interest “Guarantees”

According to the Clever Whitepaper, the protocol pays sets amount of interest every 14 days as automatic payments to every CLVA token holder that exists on the Ethereum Blockchain using no gas fees. There are 888 so called “Cycles” which are comprised of 14 calendar days and a pre-defined interest rate that is paid at the completion of the 14th day.

One of the first things that is stated on the website is: Up to 11% Compound interest PAID FORTNIGHTLY with guaranteed automatic payments for all CLVA Token holders.

While the promises of such a huge amount of interest being paid would normally make me and the average savvy investor say “scam” by labeling it as a HYIP scheme and run for the hills with these ‘too good to be true claims’, in this case it is quite different since there is no promise or oversell on prices or dollar figures specifically. If a project says “we promise you $x,xxx in X days” this would be an immediate red flag however Clever DeFi only promises a set amount of %interest instead of $dollars.

Interest is paid in the form of newly minted CLVA with an increase of token supply each Cycle so the “100% guarantee” of interest being paid is valid here and checks out.

The question is: Will the inflation of the CLVA token supply cause the token price to fall making the interest technically worthless to investors or will the CLVA price hold its own and continue to increase with the interest paid? Only time will tell.

DeFi or Not?

A lot of projects claim to be decentralized but a quick dive into their Whitepaper and Tokenomics prove otherwise. This is because there is always an element of centralization to any project due to their being elements that need to be controlled by the team including tokens.

Clever DeFi have constructed a DeFi model which eliminates this. The CLVA token supply started at zero (0) tokens as their minting phase had investors mint their own tokens by interfacing with the escrow smart contract directly. This was definitely a fair lodgment as the team could not control the minting at all with the minting dates and prices written into the smart contract itself with a reentrancy guard written in place.

The Clever DeFi claims to have no initial supply of CLVA tokens which is verifiable on the blockchain and by the supply starting nil, means that the team has no vested interest directly and cannot just sell tokens on the market nor control the price of the CLVA asset at all. This is by far the best and only way to create a free market and all DeFi projects should follow in these same footsteps.

Transparency

Probably the most overlooked but most important aspect of any Cryptocurrency is the team behind it and how upfront they are with the community without trying to hide or conceal anything.

At first glance Clever DeFi has managed to be quite vocal and completely public with all information required. The project’s CEO Bryan Legend has a good reputation in general with business and a simple Google search of his name brings up everything you need to know about him including his LinkedIn and Wiki profile.

Bryan Legend and his team are constantly available in the Clever DeFi Telegram group and from what I have seen by monitoring the group chat over the past 7 days is that their teams’ approach is right on point of where it should be. Bryan is also extremely active in the group and has been helpful in answering user concerns and questions. I haven’t noticed any unprofessionalism at all in his approach and I even chucked him a curve ball by asking him several times about price predictions to see if he would try to shill or give out a bunch of bs about it, but he answered it very professionally as a grounded CEO and didn’t take the bait.

Rug Pull

Pulling the rug out from a project simply means that the team behind it removes the liquidity out from the market by taking all the profit and leaves investors holding the bag of worthless tokens. This is a much common scam nowadays that places a huge mistrust from the start with scrutiny for any project.

The positive here for Clever DeFi is that the liquidity on UniSwap for CLVA token is locked for 12 months right from the start without private key access. This gives reassurance to token holders that the team will not pull the rug.

But what if there is a disgruntled employee or something happens where the private keys to these liquidity wallets are made available before hand or leaked out? Well Clever DeFi has thought of this and has been smart about it. The private keys are stored in secure cloud operated service that is encrypted using cryptography and has an inbuilt time-lock mechanism that acts as a time delay. This means the keys will only be able to be accessed after 12 months have passed and cannot be overridden.

In my view this is a great idea the prevents a rug pull scam from even being contemplated.

Closing Thoughts

The Clever Token code has been written and audited correctly and being a developer myself I can say first-hand that there is a lot of code here which would have taken an extreme amount of effort to not only construct but also audit. The dev team behind it certainly have put in a lot of effort and know their stuff. The Solidity code to the CLVA smart contract has been verified and is open source on Etherscan for anybody to view.

Yes, the interest promised and guaranteed on the Clever website is confirmed to be accurate by way of it being hard coded into the Clever Protocol itself and will be paid as they state. The 3rd party auditors: Block Hunters also have also acknowledged this to be true which means the “guarantee of interest” is factually correct by interest being paid through an inflation of the CLVA supply every two-week cycle.

In my opinion without the ability to do a rug-pull and without any initial supply of team tokens, there is technically no way Clever DeFi can do an exit scam or even have the motivation to do so.

With any investment there is also an element of risk so please do your own research and decide yourself if this piques your interest and as always this is not financial advice.