Clearpool Announces New Borrower — LedgerPrime
Clearpool has announced the latest single borrower pool to be launched on its DeFi protocol. The pool, launched by LedgerPrime, will be available exclusively on the Clearpool Polygon market.
To learn more about LedgerPrime, Clearpool interviewed their team to introduce LedgerPrime to the Clearpool community.
Please tell us about LedgerPrime and its history.
LedgerPrime is a multi-strategy digital asset investment firm with investment personnel in the US, Canada, Dubai, Netherlands, and Korea. We launched in 2017 as part of Ledger Holdings, which was subsequently acquired by FTX US in 2021. Historically, our LPs have been large institutional allocators.
What is LedgerPrime’s trading strategy?
Multi-strategy asset management firm. Most of our strategies are market-neutral, quantitative and systematic strategies. We focus especially on the derivatives and options markets as market makers.
Why does LedgerPrime want to borrow capital right now?
We are scaling our options trading operations, especially the OTC side, and see unique opportunities to grow our market share. While the revenue from this side of the business can be steady and predictable, options and OTC businesses as a whole can be quite capital-intensive at times.
Why is LedgerPrime interested in borrowing from the Clearpool protocol compared to other DeFi or CeFi options?
Clearpool’s dynamic market rate adjustment model is innovative. We believe a floating rate, open-term-like experience is best suited for investors and borrowers in the current market environment.
What size LedgerPrime typically borrow and seek to borrow on Clearpool?
We typically borrow from lenders in US$1–2M tranches over several months (US$10–20M in total) and are currently seeking US$5–10M from Clearpool in aggregate.
Why should our community lend to LedgerPrime?
LedgerPrime has been in business for over five years and has demonstrated its ability to withstand a variety of market conditions. LedgerPrime is also wholly owned and capitalized by one of the largest firms in the world.
What are some of the risk management strategies in place to ensure lenders’ funds are not misused?
We have stop losses in place for the majority of our trading strategies, and our overall portfolio is constantly stress-tested via simulation. Credit and counterparty risk is mitigated by us via diversification, where we have strict exposure limits in place for individual counterparties and overall exposure tiers depending on licensing, audits, insurance funds, and transparency of the types of counterparties.
What does the future hold for your firm? Where do you see it one year from now?
We aim to be one of the largest electronic and OTC options market makers in the space and will continue to expand our multi-strategy approach as a firm overall.
How will you use the funds that are borrowed via Clearpool?
Most of the funds will be used for short-term collateral and trading capital pertaining to our options and OTC business.
Any media you would like to share with our community (can be an interview, youtube video, podcast etc.)
www.ledgerprime.com — all of the articles are linked there.
For our community who’d like to keep updated with your company, how should they do so? (Newsletter, Medium, Twitter, LinkedIn links, etc.)
Please visit our website! www.ledgerprime.com
LedgerPrime’s Borrower Rating & Capacity
Clearpool has integrated Credora’s privacy-preserving technology to measure and publish LedgerPrime’s creditworthiness dynamically and to present an accurate risk score without revealing sensitive information. As a partner, Credora helps ensure Clearpool liquidity providers are informed and can make risk-based assessments.
At the time of writing, LedgerPrime has a Borrower Rating of ‘A’ and a total Borrow Capacity of US$134.6M.
To learn more about Borrow Capacity and the Credora Credit Evaluation Methodology, click here.
Want to lend to LedgerPrime? Click here to visit their pool on the Clearpool app.