blockworks.co
After months of development, decentralized capital markets protocol Clearpool is now live via its mainnet launch on the Ethereum network.
While the project has launched on Ethereum, there are plans to launch via blockchain scaling solution Polygon “soon,” Clearpool said in a release on Tuesday.
The Singapore-based project aims to provide a marketplace for institutional unsecured liquidity that leverages its native token CPOOL. Similar to Maple Finance by design, Clearpool attempts to feed liquidity into capital markets for borrowers and lenders utilizing crypto while providing a return for investors hunting moderate yield.
Clearpool said it has over $100 million of capital committed for deployment via a range of liquidity partners including the likes of CoinShares, GBV Capital, Hex Trust, Sino Global Capital.
“We have been impressed by the team’s vision to increase lending capacity and capital efficiency for borrowers while balancing risk and exposure for lenders,” said CoinShares’ Chief Strategy Officer Meltem Demirors.
“We look forward to providing lending capacity to the market through Clearpool and working with the team to build and deploy new solutions to improve the efficiency of capital across the crypto capital markets ecosystem.”
Single borrower liquidity pools have been set up by crypto institutions Wintermute, Amber Group, and Folkvang who have indicated an early borrowing appetite. Amber and Wintermute have indicated their intentions to borrow between $25 and 50 million each, while Folkvang is seeking up to $40 million, per the release.
A further 30 borrowers from “leading crypto and traditional financial institutions” is also expected in the coming months, Clearpool said. Borrowers must complete a “comprehensive” KYC process and pass real-time risk scoring measures as well as be willing to stake solely in CPOOL.
Lenders meanwhile need access to a Web3 wallet connection in order to gain access which provides both individual and institutional lenders “equal access” to the yield opportunities. Circle’s USDC on Ethereum is the first asset that can be lent to the protocol’s borrower pools with future plans to launch on multiple chains, the protocol said.
Founded in June of last year by Robert Alcorn, a former trader at First Abu Dhabi Bank and Hex Trust CEO Alessio Quaglini, Clearpool is backed by a number of prominent investors including Sequoia Capital India, Arrington Capital and Sino Global Capital, among others.
“The launch of Clearpool, in less than one year since the project was first conceived, is testament to the strength and capability of the team, community and partners that have come together to build its vision,” Alcorn said.