Review of the Month: February 2022
We’re launching a Monthly Review Series where we summarize what we’ve been working on and community building activities. February was an incredibly busy month for the Clearpool team as we’ve been heads-down, working hard every day to prepare for our upcoming mainnet launch.
At the start of the month, we announced our partnership with Qredo, a decentralized digital asset infrastructure and technology provider, to enable institutions to securely access digital assets and DeFi.
Qredo’s custody solution will be integrated into Clearpool’s protocol, empowering institutions to easily and safely deploy capital into DeFi on unrivalled infrastructure. Additionally, Qredo will bring a community of institutional borrowers and lenders to Clearpool’s ecosystem.
The partnership focuses on facilitating the growing institutional interest in Clearpool’s protocol, which links institutional borrowers directly with the DeFi ecosystem, allowing liquidity providers, both institutional and individual, to lend to the institutions of their choice.
Josh Goodbody, Qredo COO
“Qredo and Clearpool share a vision of using decentralized infrastructure to deliver painless access to DeFi for capital market players. Thus Qredo is proud to provide its decentralized custodial and settlement network in support of Clearpool’s innovative decentralized capital markets ecosystem.”
Congrats to Qredo for recently closing one of the largest Series A rounds in crypto to date of US$80M.
We release a Mainnet Update article on 16th February providing some transparency into what we’ve been working on. Some of the tasks include:
Updated Interest Rate Model (IRMv2.0)
This was deployed to the testnet and has been tested extensively by our community, team, and partners. It is working perfectly, meaning no further updates will be needed! The main difference with the new model is how it behaves when pools are in a high utilization/warning and default state.
Updated Default Mechanism
The new mechanism has been fully tested and is working for every eventuality. We received feedback from our legal team and the default mechanism has also undergone an update, which provides even more protection for lenders.
We test non-stop and continue to validate the behaviour of our smart contracts every day to ensure that they perform as intended. They do, every time! But we continue to test every possible eventuality to ensure, for example, that any recent updates have not impacted previous functionality.
Security is the number one priority so we started the audit process very early on. Our auditors are Pessimistic and CertiK. Because we started the process early, we have undergone multiple audits and we are pleased to say that we have not had any critical vulnerabilities identified by either auditor. The recent updates mentioned above are currently being audited, and this is one of the major final steps we are working on.
Legal, Compliance & Regulatory
Even in a decentralized environment, unsecured lending requires a robust legal framework. Our team has worked very closely both with our legal advisors and a global world-class law firm to create a suite of documents that will protect all parties in any eventuality. We have also worked very closely with our partner, X-Margin, to create a KYC procedure that is simple and easy for borrowers to follow but would satisfy any compliance team. Finally, we keep a close eye on regulatory developments to ensure that Clearpool will be able to continue regardless of any future rules that may be implemented by regulators around the world.
Staking & Farming
Firstly, 100% APR is still available on KuCoin and AscendEX, and will continue until around the time of our mainnet launch. AscdendEX staking is automatically compounded enabling 171.46% APR!
After the mainnet is launched the APR will be reduced, but staking will remain available on the CEX venues for a continued period of time.
CPOOL Native Staking
Following the mainnet launch, the Clearpool App will become the best place to stake CPOOL tokens. Rewards will depend on how long you decide to lock your tokens. The longer the lock-up, the higher the APR, up to a certain point when you will reach the highest level attainable.
Staked CPOOL with no lock-up will still earn basic rewards, however, locking staked tokens for the maximum period will not only provide the most attractive APR, but it will also give you the highest multiplier level for CPOOL farming.
As a liquidity provider (LP) on Clearpool, you will hold cpTokens which can be staked in order to earn additional CPOOL rewards. These rewards boost the total APR that you receive for lending as they are in addition to the pool interest rate which is paid in USDC.
The multiplier level that is achieved through staking and locking CPOOL tokens will reflect the total amount of CPOOL rewards that can be earned through farming (staking cpTokens).
Buybacks and Burning
Where do the CPOOL rewards come from? In the beginning and for a significant period of time, CPOOL earned through staking and farming will come from the Rewards Pool in the Clearpool Treasury.
The rewards pool, all else equal, would of course deplete over time. However, we want to stake and farming rewards to last forever, right?! In one of our next product announcements, you will learn about Clearpool Reserves, which is essentially protocol revenue. This is generated through a spread taken from the pool interest payments.
Reserves will be used for two things:
- Protocol development and maintenance
- CPOOL buybacks
The CPOOL that is acquired through this buyback model will be split and used in two ways:
- To sustain rewards (sent to the rewards pool)
2. Burned (sent to the burn address and never seen again!)
Yes! CPOOL will have a deflationary supply, and CPOOL rewards will be sustainable perpetually!
Clearpool in the Community
Despite being heads-down in building mode, we endeavour to be transparent to our community and collaborate with other ecosystems.
🔊 Listen to our CEO, Robert Alcorn, on our investor HashKey Group’s podcast discussing:
- Overcollateralisation problems in #DeFi
- The logic & mechanism behind #Clearpool
- The measures taken to minimise risk
- How lenders are incentivised
We held an AMA with the Crypto Ape HQ Discord community where our CEO, Robert Alcorn, joined to answer your questions. It was a fascinating 80 mins live discussion covering a wide range of Clearpool topics.
Listen to the recording on YouTube below.
YouTube & Articles
Clearpool was featured by the YouTuber, Cryptonauts, on this dedicated video. It’s a fantastic overview of the protocol and explains how it works for both lenders, borrowers, and $CPOOL holders.
A YouTube video and article about Clearpool was recently created by CriptoPasion. Check it out here for our Spanish speaking Poolsiders!
A big shoutout to one of our Poolsiders in our community MaximusCrypto who made these YouTube videos about Clearpool. His first EVER video was about Clearpool — respect ser!
Borrower & Lender Ecosystem
The team is working on a number of extremely exciting partnerships, especially on the institutional lending and borrowing ecosystem, where interest continues to grow.
To learn more about the borrowers on Clearpool we’ve already announced, check out these links.
Clearpool for Beginners
We have seen a number of you ask questions around the subject of exactly how Clearpool works, this compelled us to create a series of articles called “Clearpool for Beginners”. The first article in this series is titled Clearpool Explained in 3 Simple Points. Please take a look and keep an eye out for the next article coming soon!
Join our communities!
We’re building and expanding our Clearpool regional communities with dedicated groups on Telegram. Join us!
🏴 English Announcements https://t.me/clearpoolannounce
Our next regional community should be launching soon. Stay tuned!
Thanks for your continued support, Poolsiders! We keep building 💪🛠️