Clearpool Mainnet to Launch on 23rd March with Wintermute, Amber Group and Folkvang borrower pools
Clearpool is excited to announce the launch of its mainnet protocol on the 23rd of March at 12.00 UTC / 20.00 HKT. The decentralized marketplace for institutional unsecured liquidity is powered by its native token (CPOOL) and will initially launch on the Ethereum network, and shortly after on Polygon as well.
The mainnet protocol will launch with single borrower liquidity pools launched by leading crypto institutions Wintermute, Amber Group, and Folkvang, who collectively trade billions of dollars across the major crypto exchanges every day.
Folkvang has indicated an early appetite to borrow in the region of $10–40m via the Clearpool protocol, with Amber and Wintermute also indicating strong early appetite in the region of $25–50m.
Tiantian Kullander — co-founder of Amber Group
Amber is thrilled to become one of the first borrowers on Clearpool by launching a genesis pool. The uncollateralized lending and borrowing market in DeFi is a space that Amber is not only active in, but one that we feel has tremendous prospects for growth. We trade billions of crypto every day and as we scale, we need access to unsecured liquidity which Clearpool’s innovative protocol offers. We have no doubt that Clearpool’s innovative solution will put them at the forefront of this space.”
Clearpool has a further pipeline of some 30+ borrowers which include a selection of leading crypto and traditional financial institutions.
All borrowers on Clearpool must stake CPOOL, successfully complete a comprehensive KYC process and can be on-boarded with Clearpool’s partner X-Margin, whose technology enables a real-time risk scoring framework for lenders to assess.
Clearpool is permissionless for lenders, who only require a web3 wallet connection in order to access the protocol. This gives both individual and institutional lenders equal access to the yield opportunities that will be available on Clearpool.
Clearpool has over $100 million of capital committed to being deployed from a range of liquidity partners from both crypto and traditional finance such as CoinShares, GBV Capital, Hex Trust, Sino Global Capital, CyberX and several others. The size of the liquidity program is expected to grow significantly as more borrower pools are launched in the coming weeks and months.
Meltem Demirors — Chief Strategy Officer of CoinShares
“At CoinShares, we are in the business of building innovative market infrastructure to accelerate the growth of a blockchain-based financial system. From our first meeting with Clearpool, we have been impressed by the team’s vision to increase lending capacity and capital efficiency for borrowers while balancing risk and exposure for lenders. We look forward to providing lending capacity to the market through Clearpool and working with the team to build and deploy new solutions to improve the efficiency of capital across the crypto capital markets ecosystem.”
As a lender, when you provide liquidity to a pool, you will receive cpTokens relevant to that 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.
Ian Wittkopp — Head of Investment and COO of Sino Global Capital
“Crypto institutions over the past several years have had outsized returns and success in the market, but limited access to capital from traditional sources. As the crypto ecosystem grows, Clearpool will play a vital role in giving crypto institutions access to undercollateralized loans at attractive rates while also allowing other stakeholders to earn appealing yields with customized exposure. Sino Global Capital is thrilled to be a day 1 lender on Clearpool and is excited to use the platform for many years to come.”
USDC on Ethereum is the first asset that can be lent to a borrower pool. However, in the future, Clearpool will be launching on multiple chains and other assets and stablecoins will be enabled.
Interest Rates & Rewards
Borrower liquidity pools are continuous and dynamic, meaning they do not have a set maturity date or fixed interest rate. Dynamic pools are a new innovation and concept in DeFi. The interest rate paid to the lender adjusts based on the pool’s utilization ratio — calculated by the total amount of capital currently withdrawn by the borrower vs the total amount of capital currently in the pool.
As the utilization ratio increases and more capital is withdrawn, the interest rate rises to reflect the change in risk. Conversely, the borrower can repay capital into the pool and reduce the utilization ratio, which decreases the interest rate and the subsequent risk for the lender. This dynamic process is driven by the market forces of supply and demand and ensures that each pool’s interest rate and total size will always reach a state of equilibrium.
On top of the interest paid in stablecoin (USDC), lenders also receive extra rewards paid from the protocol in its native token CPOOL. This makes Clearpool one of the most attractive venues for risk-adjusted yields and lending stablecoins in DeFi today.
Robert Alcorn, CFA — CEO and co-founder of Clearpool
“The launch of Clearpool, in less than one year since the project was first conceived, is testament to the strength and capability of the team, community and partners that have come together to build its vision. Not only is Clearpool backed by leading investors such as Sequoia Capital, but it has also attracted a number of high profile partners, many of whom are now interacting with the protocol either as borrowers or lenders. The innovation that Clearpool brings to DeFi is unrivalled in the borrowing and lending market, and paves the way for an exciting future with more products currently in development to enhance the landscape for both borrowers and lenders”
Participate in Clearpool
Want to become a borrower on Clearpool? Please contact us at firstname.lastname@example.org
Want to lend on Clearpool? Click here to visit our app.