Clearpool Monthly Report — November 2022

Key Takeaways

— Clearpool protocol standout performer during November volatility
— LPs able to withdraw from pools within days of FTX bankruptcy
— Oracle voting results in higher interest rates following market events
— Staked CPOOL and the number of unique addresses continue to rise

Introduction

November was one of the most eventful months in the history of crypto. The FTX bankruptcy created extreme volatility, which led to large-scale withdrawals from crypto exchanges, platforms and protocols. Clearpool’s unique model performed incredibly well, as per its design, during this period. Permissionless pool LPs were able to initially withdraw the available liquidity from each of the pools, leading to a spike in interest rates for borrowers, who subsequently repaid liquidity, enabling further withdrawals. Given the magnitude of the events unfolding, many borrowers made the decision to fully repay pools, giving all LPs the ability to withdraw liquidity in full. This highlights the natural de-risking effect that Clearpool’s mechanism encourages during such volatility. The result is that very little risk now remains on the protocol, and both borrowers and lenders now have the ability to assess market conditions before resuming activity.

Protocol Performance

Total Value Locked initially continued to grow in November, hitting approximately $165 million before declining following the FTX bankruptcy. This is a feature, not a bug of the Clearpool design, as the protocol allows for withdrawals of available liquidity at any time. This mechanism worked perfectly during November’s market volatility. As LPs withdraw available liquidity, borrower utilization rates increase, in turn pushing rates higher. In most cases, this incentivizes borrowers to repay liquidity into the pool, enabling further withdrawals. During extreme volatility, borrowers may decide to repay fully, enabling all LPs to withdraw funds. This was the case following the FTX bankruptcy event for a number of borrowers. Both borrowers and lenders now have the ability to monitor the market before deciding when to become active once again.

Product & Integrations

The team has been testing Clearpool’s new permissioned product during November, which will now go to audit during early December. There are a number of institutions lining up to use this new product; once the initial line-up is confirmed, the launch date will be announced. More details will be released later in December.

Clearpool applied for an official listing of CPOOL on Ledger Live, which was confirmed during November. Ledger users can now store CPOOL on their Ledger device; more details can be found here.

Development has begun on a number of new products and existing product improvements that will significantly enhance the Clearpool ecosystem in 2023. A more detailed roadmap for 2023 will be announced soon.

Oracle Results

Please see below the results from the most recent Oracle voting round.

In the above charts, Y0, Y1 and YM represent the initial, highest and lowest interest rate points along the IRM curve. For more details about the Interest Rate Model, please click here.

CPOOL

The majority of CPOOL that was being staked on CEXes migrated to the native staking contracts, as is observable in the chart below.

Community & Ecosystem

Jakob Kronbichler (Clearpool’s co-founder & CCO), joined BlueJay Finance for a Twitter Spaces AMA to discuss Institutional Lending. Click here to listen to the recording and the link below to read the conversation highlights.

Jakob also joined the private Telegram community, Little Dogs, for an AMA on the future of Clearpool. Read the recap here.

Robert Alcorn (Clearpool’s co-founder & CEO) joined a Twitter Spaces held by Shigeo808 and Conor Brondson. Topics discussed include the future of DeFi lending and uncollateralized on-chain lending to institutions. Listen to the recording here or read the recap here.

Clearpool launched an investor interview series, where we asked our leading investors for their thoughts on the protocol’s journey so far. First up was Sino Global Capital, click here to read the interview.

Clearpool was represented at both Hong Kong and Singapore’s Fintech Weeks during November. HashKey (Clearpool’s investor) interviewed Jakob during Hong Kong Fintech week and you can check out the interview on YouTube below. Topics discussed include what’s coming next for Clearpool and how TradFi is entering DeFi.

Hex Trust announced they now offer staking services for CPOOL. Institutions holding CPOOL can delegate voting power to HT Markets & claim rewards by staking from Hex Safe.

Coverage

Clearpool’s tokenomics was featured by the YouTube channel, CryptoTalkNow.

Bybit featured Clearpool in their recent article on ‘DeFi Meets TradFi — The Integration and Challenges Faced’. According to Bybit, “the next DeFi Summer will come from deepening integration between DeFi and TradFi.” Read more here.

Summary

One of the worst ever months for crypto is behind us. Although the full effects of the collapse of FTX may not be known for months, Clearpool has performed incredibly well, and the team is as committed and as focused as ever to continue to build on the achievements realized to date and to deliver Clearpool’s long-term vision.

The new permissioned product has generated a lot of internal excitement, and we look forward to being able to announce more details later in December. Development has started on a number of other new products and existing product improvements, which will all provide significant enhancement to the Clearpool ecosystem in 2023.

These are unprecedented times, and we would like to thank our community, partners and investors for their continued support, as well as continue to offer our support as we all, as a larger community, continue to look ahead to a bright future for crypto, DeFi and Clearpool.

Download the monthly report.