DeFi is difficult to maneuver as numerous loopholes can bring your account into deep losses. Apart from that, DeFi faces many challenges as it is underdeveloped compared to TradFi. The coming of multiple blockchains made the situation worse as these blockchains became isolated. But not anymore.
Clearpool is among many upcoming cross-chain DeFi protocols, but with a twist. Here’s a quick look at this micro cap gem.
What is Clearpool Finance?
Clearpool Finance is a cross-chain protocol whose main goal is to offer improved DeFi products and become a worthy competitor for traditional finance. Institutions gain access to unsecured liquidity via Clearpool
Clearpool, founded by Robert Alcorn, Jakob Kronbichler and Alessio Quaglini, solves the urgent need for liquidity. The platform is guarded by excellent custody and compliance services like ID verification and KYC. In short, Clearpool brings the smart lending perspective.
$CPOOL is the utility and governance token that powers the Clearpool ecosystem. Borrowers participate in CPOOL before establishing liquidity pools. Delegated staking brings additional rewards and helps secure the Clearpool economy.
Enormous potential for institutions
DeFi lending protocols today face widespread over-collateralization and liquidation. This is a consequence of the volatility of crypto assets used as collateral. Clearpool seeks to remove some of these limitations by combining traditional capital market concepts with the benefits of blockchain.
Additionally, with Clearpool, lenders have access to key information that can include a borrower’s creditworthiness, risk profiles, etc. The broader range of features Clearpool plans to bring to DeFi brings institutions on-chain. Consequently, it will expose them to the wide variety of crypto-native capital and reveal to them the incredible innovations of DeFi.
DeFi protocols, which require much more collateral than borrowed money, have emerged as a vulnerability for business institutions. CeFi platforms depend less on collateral by reintroducing counter play possibility, but offer incredibly remote possibility management for LPs.
Solving such problems makes Clearpool a strong contender in today’s market.
Clearpool $CPOOL buyback mechanism
Clearpool is also planning a log buyback and burn mechanism that will make CPOOL a deflationary asset. Another advantage is that CPOOL is endorsed by a large number of companies and featured in some reputable magazines
Clearpool Tokenomics
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 $23 million, with each CPOOL token costing $0.1169. In the past 30 days, CPOOL has rallied over 102% as more institutional borrowers join the platform. The DeFi protocol now has over $140 million in TVL, which is still growing.
Clearpool Finance is what many would describe as 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 huge blockchain enthusiast. Blockchain has changed his life in terms of financial freedom and in return he likes to educate people and update them on everything blockchain related. He is a biochemist by profession and also enjoys playing the piano.
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