What is Clearpool? (CPOOL & cpTokens)
Clearpool is a decentralized capital markets solution, aimed at revolutionizing the use of unsecured liquidity.
The growth of the decentralized finance (DeFi) market has shown us the flaws of traditional finance, with the influx of many alternative and impressive decentralized ecosystems. Despite this impressive growth, the traditional credit market is still far more valuable, with an estimate of $ 100,000 billion in total size compared to DeFi’s meager $ 175 billion in September 2021. TradFi has obviously been around longer, however. , the much-needed improvements and restructuring that DeFi has made over the years cannot be denied.
Decentralized solutions like Clearpool are designed to revolutionize today’s credit market and solve the problem of over-collateralization. Clearpool is an impressive solution that minimizes counterparty risk for users by connecting TradFi and DeFi by effectively implementing risk management and hedging solutions.
Introduced in 2021, Clearpool is one of the latest blockchain solutions to the oversizing problem plaguing the DeFi space. According to co-founder and CEO Robert Alcorn, the platform was first conceptualized in 2016 with his longtime friend and CEO of Hex Trust, Alessio Quaglini.
Currently, the platform is made up of 5 full members with in-depth expertise in the areas of decentralized and traditional financing.
Alcorn believes that the platform has âthe perfect blend of TradFi, Crypto, FinTech expertise and fantastic advisorsâ¦â They have worked tirelessly for 5 years to implement a safe and secure platform like Clearpool.
The Clearpool team is fully committed to building the most effective âdecentralized capital markets ecosystemâ to date to facilitate lending and borrowing operations.
What is Clearpool?
Clearpool is a decentralized capital markets solution that aims to revolutionize the use of unsecured liquidity. The financing solution seeks to create a paradigm shift in the way large organizations borrow unsecured cash. In addition, Clearpool seeks to open collateral everywhere and possibly eliminate liquidation risks for all participants.
Thanks to its new technological advancements, the platform introduced several new protocols intended to revolutionize the global architecture of DeFi Lending. Clearpool offers institutional borrowers and liquidity providers unique access to DeFi’s unsecured liquidity, as well as effective hedging and risk management solutions.
Clearpool’s decentralized algorithm effectively implemented pre-existing solutions under traditional funding and reshaped them following current DeFi trends. This, in turn, removes the need for intermediaries, high costs and long delays in borrowing / lending operations.
So far, the platform’s continuous renovation of TradFi systems has brought immense benefits to lenders and borrowers alike, generating huge opportunities in the space and enabling continued growth of the DeFi space.
Clearpool’s single borrower liquidity pools and tokenized credit protocols enable single borrower pools to deliver lucrative returns to all liquidity providers within the platform. All this is only possible through a tokenized credit system, which provides sophisticated risk management solutions.
In addition, these protocols will allow lenders to operate with more transparency, giving them access to credit ratings assigned to institutional borrowers, only after a strict KYC process and before being granted loans at a lower guarantee rate.
Oversizing in the DeFi sector has been a key issue for the Clearpool team. The decentralized platform has successfully implemented a series of motion algorithms to solve problems in the lending and borrowing space.
However, Clearpool prides itself on being more than just a loan and borrowing protocol; the platform is a âdecentralized capital markets ecosystemâ designed to enhance debt capital markets through its unique products.
The platform aims to take advantage of TradFi and the attractive value of the credit market, which is approximately $ 123 trillion in size. Clearpool sees the huge market as the perfect opportunity to target financial institutions, supranational entities, governments and businesses known for their lending / borrowing habits, providing them with ways to manage and lend potential risks.
Clearpool has succeeded in bridging the gap between DeFi and TradFi. The protocol was designed to thrive in the ever-growing DeFi space. The latter is poised to eclipse traditional financial systems, with a continued surge of decentralized financial services.
Hex Trust Partnership
Recently, the platform partnered with Hex trust, a leader in digital asset operations in Asia. Clearpool will benefit from Hex Trust’s expertise in creating unique and effective custody solutions, combined with compliance services to equip all lenders with advanced tools to mitigate counterparty risk.
The dynamic partnership will mainly ensure the full implementation of the various services of Clearpool, providing important services to participants, such as KYC, transaction monitoring services and identity verification tools.
Hex Trust, Asia’s leading digital asset custodian, is fully licensed, insured and the leading bank-grade custody provider for digital assets. Established in Hong Kong in 2018, Hex Trust aims to enable all financial institutions “to seamlessly integrate digital assets into their business operations in a highly secure, scalable and compliant manner.”
Hex Trust’s unique protocol allows all users to access liquidity providers, exchanges and loans / games, while strengthening platforms such as Clearpool. Overall, Hex Trust carefully provides access to blockchain technology to financial institutions looking to offer digital asset services to their clients.
Hex Trust CEO Alessio Quaglini believes that “As blockchain becomes the underlying infrastructure for financial instruments, every financial institution will need an enterprise platform to manage its representation on the blockchain.”
Currently, the platform is registered as a trust company under the Hong Kong Trust Ordinance and is licensed as a Trust or Corporate Service Provider (TCSP) under the Hong Kong Trust Ordinance. money laundering and terrorist financing. In addition, in Singapore, Hex Trust holds a Capital Markets Services (CMS) license from the Monetary Authority of Singapore (MAS) allowing the company to provide custodial services regulated under the Securities and Futures Act of Singapore.
CPOOL is the governance token within the Clearpool protocol. Through CPOOL, token holders can reach consensus regarding the approval of whitelisted borrowers. An ERC-20 token, CPOOL is the lifeblood of the Clearpool ecosystem.
Whenever an LP provides liquidity to a Clearpool, it will receive cpTokens in return. Tokens represent the exact amount of liquidity provided. Additionally, the interest rate is accrued and paid in the currency of the pool while the LP rewards are paid in CPOOL, Clearpool’s governance token.
The cpTokens also represent the amount of risk that the lender has taken in financing the borrower. Overall, the token opens up a world of possibilities for LPs to continue trading, managing and hedging risk.
Similar to bonds in TradFi, cpTokens will be traded in a secondary market, where LPs can reduce or eliminate their exposure by trading the risk. New LPs seeking exposure to the risk / reward profile of certain borrowers can also purchase cpTokens on the secondary market.
Recently, as part of their partnership with Hex Trust, the decentralized platform physically dropped around $ 50 to $ 1,000 in CPOOL tokens for the lucky winners in the Hong Kong area.
Clearpool believes in DeFi’s ability to disrupt the current financial system, making a reasonable bet that technology can erase the problem of over-funding. Powered by its CPOOL governance token, the platform exposes all of its users to huge opportunities and allows all liquidity providers to operate securely while achieving attractive returns.
Clearpool’s unique blockchain implementation has the potential to improve the current financial ecosystem and further push decentralization into a sector that is totally opposed to it.