PEARL - Wrapping sCLAM

sClam increases in amount over time, while PEARL increases in price.

• In many countries, there is a clear distinction between Income Tax and Capital Gains Tax. Income Tax applies to regular income, usually received for work done or investments.
• Capital Gains Tax applies to money gained from (for example) the sale of an asset like a house or investment.
• In many cases, Capital Gains Tax is lower than Income Tax, and so it would be diligent to make it as clear as possible to the taxation authorities of your country/jurisdiction that the income you receive from OtterClam is a Capital Gain rather than an Income.

• Enable sCLAM for use on other protocols like as a collateral asset for lending platforms.
• There will be a document explaining the process, but in short, you can collateralize your PEARL to borrow stable coins which you can again stake on Otterclam or on any other protocol, as your Clams remain staked, they continue to get rebase rewards.

This is not a financial advice and collateralizing involves liquidation risks

• To make sCLAM cross-chain. The rebase system only works on a single chain. When cross-chain, we need a token which balance won’t increase over time. Here is where PEARL can work. You can keep your CLAM staked and cross PEARL to another chain.

• The index, which you can monitor on the Stake page or the dashboard, equals how many Clams per one Clam you would have if you were staking from the beginning when the project launched.
• Think of it as a way to record the time you’re staking and unstaking.
• So when you wrap your Clam, it looks at the index and records it. And when you unwrap it, it again looks at the index and decides how many rebase rewards you have accumulated from the first index up to then. That is why when you wrap, you automatically receive rebase rewards without ever going to the staking page.