DeFi is tricky to maneuver because numerous loopholes can leave your account in deep losses. Aside from this, DeFi is faced with many challenges because it is underdeveloped compared to TradFi. The coming of multiple blockchains made the situation worse since these blockchains were siloed off. But not anymore.
Clearpool is among many upcoming cross-chain DeFi protocols, but with a twist. Here is a brief insight into this micro-cap gem.
What is Clearpool Finance?
Clearpool Finance is a cross-chain protocol whose main goal is to provide enhanced DeFi products and become a worthy competitor to traditional finance. Through Clearpool, institutions get access to uncollateralized liquidity
Clearpool, founded by Robert Alcorn, Jakob Kronbichler, and Alessio Quaglini, solves the dire need for liquidity. The platform is guarded by stellar custody and compliance services such as ID verification and KYC. In short, Clearpool brings on the perspective of smart lending.
$CPOOL is the utility and governance token that powers the Clearpool ecosystem. Borrowers stake CPOOL before launching liquidity pools. Delegated staking earns additional rewards and helps secure the Clearpool economy.
Massive Potential for Institutions
DeFi lending protocols today are faced with extensive over-collateralization and liquidation. Such is a result of the volatile nature of crypto-assets used as collateral. Clearpool attempts to address some of these limitations by combining traditional capital markets concepts with the benefits of blockchain.
Additionally, with Clearpool, lenders have access to vital info that may include a borrower’s creditworthiness, risk profiles, etc. The wider range of functions Clearpool plans to introduce to the DeFi brings institutions on-chain. Consequently, it will expose them to the wide variety of crypto-native capital and reveal the incredible innovations of DeFi to them.
DeFi protocols requiring much more collateral than borrowed money have emerged as a weakness for business institutions. CeFi platforms depend less on collateral by reintroducing counterplay possibility but present incredibly remote possibility management for LPs.
Thus, Clearpool solving such issues makes it a strong contender in today’s market.
Clearpool $CPOOL Buyback Mechanism
Clearpool is also planning on a protocol buyback and burn mechanism that will make CPOOL a deflationary asset. Another advantage is that CPOOL is backed by a large number of businesses and featured in some notable magazines
Clearpool has a total supply of 1,000,000,000 tokens, but only 202,985,364 are in circulation. The project has a market cap of $23M, with each CPOOL token going for $0.1169. Over the past 30 days, CPOOL has rallied by over +102% as more institutional borrowers join the platform. The DeFi protocol now has over $140M in TVL, which is still increasing.
Clearpool finance is what many might call a hidden gem. Among other famous institutions, Alameda Research, FBG Capital, and Wintermute have joined Clearpool as borrowers.
Vincent Munene is a freelance writer and a great blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return, he likes to educate people and keep them up to date on everything blockchain. He is a Biochemist by profession and also loves to play the piano.