What is Clearpool? Clearpool is an unsecured lending platform that allows institutional borrowers to obtain loans from lenders. Let’s find out what is special about this project with Weakhand in this article.
What is Clearpool?
Overview of Clearpool
Clearpool is an unsecured lending platform where institutional borrowers can create a liquidity pool to obtain unsecured loans from lenders.
Clearpool’s aim is to build a platform that facilitates the flow between traditional capital markets and the growing Defi ecosystem.
Objects participating on the platform:
- Borrower (Borrower): As organizations wishing to receive loans, Clearpool cooperates with Credona to conduct KYC of institutions before accepting them as borrowers on Clearpool.
- Lender (Lender): Provide loans to receive compound interest including USDC and CPOOL tokens.
Clearpool’s mechanism of action
Clearpool’s operating model takes place through the following steps:
Step 1: After Borrower completes the KYC process and credit risk rating approved by Credona. Borrower must Stake CPOOL tokens to have the right to create a Liquidity Pool on the Clearpool platform and receive loans back.
Step 2: Lenders choose suitable pools to deposit USDC to earn interest. The amount of interest earned depends on the amount of money the Borrower is using meaning that as the Borrower’s usage rate increases the interest rate also increases and rewards Lender with high interest rates. Clearpool will mint 1 amount cpTokens (cpTokens increase over time) represents Lender’s deposit.
Step 3: Lender can withdraw his deposit at any time. cpTokens are also burned when the Lender completes the withdrawal process from the platform.
Note: Because this is an unsecured loan, Lender faces credit risk from Borrower. Essentially, this is the risk that the Borrower uses up all of the Pool’s liquidity and fails to repay its debt within a certain period of time.
In the event Borrower fails to repay the loan (default), Clearpool conducts an auction to repay the Lender.
What is the Clearpool difference?
Clearpool has integrated LayerZero allowing for seamless CPOOL token transfers, deploying the Pool across multiple chains to improve user experience.
In addition, implementing the unsecured lending model helps Lender receive higher interest rates while still ensuring some safety because Borrowers have been thoroughly verified from Clearpool.
Core Team
Robert Alcorn : Co Founder & CEO
- He has worked at National Bank of Abu Dhabi as Director since July 2014.
- In June 2021, he quit his job and became CEO at Clearpool.
Jakob Kronbichler : Co Founder & CCO
- He graduated with a bachelor’s degree in applied science from Maastricht University.
- He has worked at Eatigo Group as Chief Growth Officer since January 2017.
- In July 2020, he moved to work at Aspire as Regional Head of Commercial.
- After that, he quit his job and joined Clearpool as CCO from July 2021.
Investor
September 28, 2021: Clearpool announced successfully calling for $3M from many investment funds such as: Sequoia, Haskey Group, Wintermute,…
Tokenomics
Basic information about tokens
- Token Name: Clearpool
- Ticker: CPOOL
- Blockchain: Ethereum
- Contract: 0x66761fa41377003622aee3c7675fc7b5c1c2fac5
- Token Type: Utility, Governance
- Total Supply: 1,000,000,000 CPOOL.
Token Allocation
Token Release
- Team: Lock in the first 6 months and pay linearly for the next 24 months
- Investors: 12 months vesting.
Token Use Case
CPOOL tokens are used to:
- Borrower Stake: Before creating pools, Borrowers need to stake a certain amount of CPOOL tokens.
- Used to pay rewards to Lenders.
Exchanges
CPOOL tokens can be traded on both DEX and CEX exchanges such as: Uniswap, Gate.io, Kucoin, …
Clearpool Project Information Channel
- Website: https://clearpool.finance/
- Twitter: https://twitter.com/ClearpoolFin
- Medium:
summary
Clearpool helps users access the new Lending market with unsecured lending. However, this model still has potential risks when Borrower goes bankrupt and cannot repay the loan. Hope everyone has received interesting knowledge from reading this article.