Clearpool: What is it?
A decentralized finance ecosystem called Clearpool includes the first-ever permissionless institutional liquidity market.
Clearpool’s permissionless single-borrower pools, driven by supply and demand in the market, give institutions access to short-term financing while giving DeFi lenders risk-adjusted returns according to interest rates determined by market consensus.
The compliance requirements for institutional market participants to borrow and lend digital assets wholesale are further satisfied by a second, fully permissioned institution-grade platform.
Prime
Wholesale lending and borrowing of digital assets through a non-custodial, institutional-grade marketplace that connects you to the biggest worldwide network complying with KYC and AML regulations.
Permissionless
Earn risk-adjusted returns by making direct loans to organizations that have been whitelisted. No lock-up period.
Staking and Oracles
Permissionless pool interest rates are set by parameters that are voted on by the network of institutions that makes up Clearpool Oracle.
By staking to an Oracle pool, you can secure the interest rate pricing mechanism and earn yields on CPOOL.
The largest global network for digital asset retail borrowing and lending that complies with KYC and AML regulations
Every counterparty on Prime, including lenders and borrowers, is subject to extensive Know-Your-Customer (KYC) and Anti-Money Laundering (AML) investigation. Lenders can access yield opportunities with reputable institutional counterparties and borrowers can create pools with tailored terms in a compliant and secure environment. The only place to get Clearpool Prime is on Polygon.
For Borrowers
Collateral is not necessary when borrowing with Prime. In the central smart contract, the borrower establishes a pool with particular conditions. The borrower may ask any other institution on their whitelist to contribute to the pool after it has been established. At no time does Clearpool retain control of the loaned assets; instead, they are instantly and directly transferred to the borrower wallet address.
For Lenders on Clearpool
An email outlining the borrower and pool terms will be sent to whitelisted institutions that have been invited to fund a borrower pool. Within the parameters of the supply window and pool terms, lenders are only able to provide liquidity to pools to which they have been invited.
Rolling Loans
Before maturity, the borrower has up to 48 hours to invoke the Roll function. Lenders have the opportunity to prolong the pool for a further amount of time equal to the initial pool duration with Roll. Lenders have the option to join or leave the Roll. Lender records that have opted in get added to the rollLenders map when a pool is rolled. Information regarding the maturity date and accumulated interest is stored by the pool there. Users will have the option to opt out of the subsequent roll, in which case their maturity date will be adjusted. The only lender pools that will be rollable with the present version of Prime are single ones.
Call Backs by Clearpool
A lender may call back an early withdrawal request after providing liquidity to a pool. However, the borrower is not required to repay if they request a withdrawal before to the maturity date. Interest will only be charged on the number of blocks that have passed since the pool’s founding if the borrower chooses to repay.
Mechanism of Interest Rates
When the pool is launched, interest rates are predetermined and agreed upon. Interest for both parties (lender and borrower) starts to accumulate as soon as the assets are loaned because they are not kept in protocol custody.