Folkvang Partners with Clearpool to Become a Borrower on the Protocol
We’re excited to announce our partnership with Folkvang. Trading billions everyday, Folkvang will become a borrower on Clearpool and utilize Clearpool’s revolutionary DeFi protocol.
Folkvang: Borrower Profile Interview
1. Company Background
Folkvang is a native crypto trading firm. With our proprietary technology, we trade on all major crypto markets around the clock. Since we began trading, we’ve grown the team from two people in Asia in 2018 to a global team of five core contributors.
In March 2020, we became more official and took on investment from SBF to seriously scale up our capital base and trading operations. We have been a part of global on-screen crypto flows ever since, trading billions of dollars every day on all the major coins and exchanges.
2. Trading Strategy
As a quantitative trading firm, we employ a variety of trading strategies, ranging anywhere from degen yield farming to low latency HFT arbitrage on the biggest markets. We are best known for the latter, where our market-neutral HFT strategies make money from market-making, arbitrage, funding, and basis.
On a weekly basis, we have had zero drawdowns since our start in March 2019.
3. Why are you looking to borrow capital now?
Our main HFT trading activities have no market sensitivity and limited price exposure. However, they are very capital intensive, and we need to have money ready for deployment on each and every venue. We will use the capital as collateral on exchanges to power our capital-hungry custom proprietary trading systems.
4. Why are you interested in borrowing from Clearpool’s protocol compared to other available options?
Leveraging Clearpool’s products, we can borrow with a very high degree of transparency as everything is recorded on chain. This means we’re always beefing up our credit history.
On top of that, by using Clearpool, we can more directly interact with our lenders. We can also point new potential lenders to our pool on Clearpool, which saves us a lot of hassle in onboarding and settling loans.
5. What size do you typically borrow and are seeking to borrow on Clearpool?
We typically work with a large number of lenders at any single time, and individual loans can be anywhere from $1m to $25m+. On Clearpool, we hope to operate a bigger pool, given that a single pool will consist of many lenders.
6. Why would the Clearpool community lend to Folkvang?
At Folkvang, we’ve been supporting the crypto ecosystem for a number of years. With our liquidity, we make it easier and cheaper for people to trade on every exchange (as well as DeFi platforms on many blockchains). Lending to us means we can do this on a bigger scale and further push the ecosystem.
So far, we have a strong track record with zero drawdowns dating back to early 2019. Our credit quality should be viewed at the highest tier as an established and hyper-successful trading shop in the digital asset landscape.
7. Any media you would like to share with our community?
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Folkvang is a quant trading firm and liquidity provider active in all leading crypto markets, trading all major currencies on all major exchanges with a 24/7 presence.
Clearpool is a decentralized capital markets ecosystem where institutional borrowers can access unsecured liquidity and where liquidity providers can earn attractive risk-adjusted returns.
The first decentralized dynamic marketplace for unsecured liquidity, where supply and demand always ensure each pool reaches a state of equilibrium in terms of size and interest rate.
A paradigm shift in how institutions borrow uncollateralized liquidity is upon us.