Clearpool Announces New Borrower — Parallel Capital
Clearpool has announced the latest single borrower pool to be launched on its DeFi protocol. The pool, launched by Parallel Capital, a high-frequency trading firm, will be available exclusively on the Clearpool Polygon market.
To learn more about Parallel Capital, Clearpool interviewed their team to introduce Parallel to the Clearpool community.
Please tell us about Parallel Capital and its history
Founded in 2018, Parallel Capital is an algorithmic, high-frequency proprietary trading firm that specialises in providing liquidity within the cryptocurrency markets 24/7/365.
We’re a major though under-the-radar player in the cryptocurrency market-making ecosystem, founded by industry veterans from both Wall Street and Silicon Valley in a melding of finance and tech.
We profitably trade tens of billions of USD per month with over USD$100M in AUM and zero monthly drawdowns since inception, outperforming much larger and better-funded teams.
What is Parallel’s trading strategy?
Parallel Capital has a firm delta-neutral mandate and has achieved returns through a variety of proprietary market-making trading strategies.
Why does Parallel want to borrow capital right now?
The implosion of Three Arrows Capital, Celsius, and other large institutional players has unfortunately but understandably dried up the lending markets. We’re hoping to show the crypto community that there are responsible, profitable, and sustainable yields to be had with good actors practising prudent risk management while still trading profitably to help stabilise the crypto industry’s image and also promote the ideals and benefits of decentralisation.
Why is Parallel interested in borrowing from the Clearpool protocol compared to other DeFi or CeFi options?
In light of recent market events, we’re seeking to diversify our lender risk, but we’re also interested in tapping Clearpool’s strong community to unlock the benefits of decentralisation for both parties. We believe that a win-win relationship where we obtain more inventory to make markets and share the yield with fellow crypto traders will help benefit the crypto ecosystem and democratises access to high-performing, low-risk opportunities.
What size does Parallel typically borrow and seek to borrow on Clearpool?
We usually borrow USD$2–5M per loan and would seek similar sizes on Clearpool, but may adjust accordingly depending on the response we get from the community.
Why should our community lend to Parallel Capital?
Parallel Capital has always delivered excellent risk-adjusted returns; we are fanatical about managing risk and maintaining a conservative approach in the markets. We are able to quote tight and large when others fear to tread during volatile events (and we make the most money during these periods!) because we maintain strict margin requirements and large safety buffers to be prepared for any market condition. We also deeply support the crypto community and have a strong long-term belief in the industry.
Lending on Clearpool
USDC on Polygon can be lent to the Parallel Capital borrower pool. Clearpool is permissionless for lenders, who only require a web3 wallet connection to access the protocol. This gives both individual and institutional lenders equal access to the yield opportunities available on Clearpool through lending to top-tier crypto institutions such as Parallel Capital.
As a lender, when you provide liquidity to the Parallel Capital pool, you will receive cpTokens relevant to this specific pool in return. cpTokens have three main characteristics; they represent the amount of liquidity that has been supplied to a specific pool, they accrue the interest rate for that pool on every block, and they represent the risk profile of the pool borrower. cpTokens can be redeemed at any time, subject to the pool’s liquidity.
Clearpool has already launched single borrower pools by industry-leading crypto native market making and trading firms Auros, Wintermute, Amber Group, Folkvang and FBG Capital and Jane Street. The total amount of liquidity provided on Clearpool since the mainnet was launched in March 2022 has already surpassed US$180M.
MATIC Rewards Promotion
To celebrate the launch of Clearpool on Polygon we are excited to announce that Polygon has provided 170,000 MATIC tokens, available to be farmed by early LP’s on the Clearpool Polygon Market.
For 60 days commencing on the 28th July 2022, all lenders (LP’s) to liquidity pools on the Clearpool Polygon Market will receive additional LP rewards paid in MATIC. To learn more about the promotion, click here.
Parallel Capital’s Borrower Rating & Capacity
Clearpool has integrated X-Margin’s privacy-preserving technology to dynamically measure and publish Parallel Capital’s creditworthiness, and to present an accurate risk score without revealing sensitive information. As a partner, X-Margin helps ensure Clearpool liquidity providers are informed and can make risk-based assessments. At the time of writing, Parallel Capital has a borrower rating of ‘AA’ and a total Borrow Capacity of US$44.5M.
To learn more about Borrow Capacity and the X-Margin Credit Evaluation Methodology, click here.
Want to lend to Parallel Capital? Click here to visit their pool on the Clearpool app.