Clearpool (CPOOL): Advancing Credit Markets in DeFi

Cryptocurrencies have the same utilities as fiat currency, including allowing users to make purchases and investments. In addition, these digital assets can give users voting power in a platform’s governance. While fiat is also used for lending purposes, the same use hasn’t applied to cryptocurrencies until recently with the introduction of Clearpool, an innovative decentralized finance (DeFi) protocols system. From a financial perspective, the ability to use cryptocurrencies for lending purposes benefits both borrowers and liquidity providers.

Key Takeaways:

• Clearpool is the world’s first decentralized credit marketplace, originating hundreds of millions of loans via its DeFi protocols.

• Its marketplace functions on multiple networks, allowing investors to choose which loan requests they want to contribute their money to.

• Looking to trade Clearpool tokens? Bybit now offers the CPOOL/USDT Spot trading pair.

What Is Clearpool?

Clearpool is the world’s first decentralized credit marketplace, originating hundreds of millions of loans via its DeFi protocols. It functions on multiple networks, allowing investors to choose which loan requests they want to contribute their money to.

Clearpool connects institutional borrowers to lenders. These individual lenders contribute their digital assets to single-borrower pools. Each lender has complete control over which borrower they lend to, as well as their risk exposure by reviewing borrower profiles. Lenders can take advantage of higher interest rates with a greater return by providing unsecured institutional liquidity to higher-risk borrower liquidity pools.

History of Clearpool

The co-founders of Clearpool established their platform as an alternative to traditional financial systems. Co-founders Robert Alcorn, Jakob Kronbichler and Alessio Quaglini have extensive experience in blockchain technology, as well as in the internet, fintech and traditional finance industries. The project is backed by Wintermute, Sequoia Capital, Arrington Capital, Sino Global Capital (now Ryze Labs) and HashKey Group.

What Does Clearpool Aim to Achieve?

Clearpool is a DeFi platform that connects borrowers and lenders via a permissionless marketplace. It aims to provide a superior alternative to traditional financial systems. 

How Does Clearpool Work?

In order to participate with Clearpool as either a borrower or lender, users must hold CPOOL tokens. Borrowers establish their borrower pool, and financial institutions establish the interest rates for each individual borrower pool through the Clearpool Oracle network. Lenders can then stake their CPOOL tokens to a specific pool, allowing them to benefit from the interest paid on their staked tokens.

Features of Clearpool

Clearpool stands apart from centralized financial institutions by supporting borrowers and lenders with active loans in a DeFi space. Its crypto lending platform functions by using uncollateralized liquidity and risk-based interest rates.

Permissionless

Clearpool is a permissionless crypto lending platform. It connects whitelisted financial institutions with those in need of crypto financing. Permissionless pools are available that work with both verified borrowers and lenders.

Crypto Lending

To initiate blockchain technology crypto lending, Clearpool creates single borrower pools. Risk is assessed based on borrowers’ profiles and the credit market, so that potential lenders can assess the total value potential for their investments.

Staking

Both individual and institutional users can be lenders on Clearpool. A lender simply needs to connect to the Clearpool app, and select the specific pool to which they wish to contribute funds. Via the staking process, lenders receive cpTokens, which accrue interest based on the disclosed return.

Bridge

Clearpool supports the transfer of CPOOL tokens across different blockchains through the CPOOL Bridge. (This applies only to supported blockchains.) Specifically, the CPOOL Bridge supports the movement of liquidity to enhance the Clearpool ecosystem. Clearpool bridges with Ethereum and Polygon with a single transaction operation, and audits and secure technologies are used with multichain bridging.

Clearpool Prime

Clearpool Prime complies with AML and know-your-customer (KYC) due diligence. This feature is available only for whitelisted institutional users, and functions only on Polygon. Borrowers create their own pools, without the need for collateral, and they invite specific institutional users to provide funding. These lenders review borrower profiles in order to assess risk, as well as the total value of their investment, before making their contributions.

Clearpool Road Map

When Clearpool launched in early 2022, it had three liquidity pools with FBG Capital, Wintermute and Folkwang. Throughout that year, Clearpool updated its permissionless pools, added more of them, launched native staking and debuted its Cosine Curve interest rate model. In 2023, the platform continued to evolve with a new website, multi-asset pools, pool and staking refactoring, the debut of Clearpool Prime, enhanced yield tranches and other features. 

Thus far, in 2024, Clearpool has brought term pools, credit vaults, a new chain, fintech borrowers and a new user interface online. Looking forward, its decentralized credit marketplace will continue to evolve, with more multichain growth, detailed credit report availability, the second version of Clearpool Prime, a new staking model, exchange-traded pools and other enhancements. 

At this time, Clearpool’s uncollateralized liquidity pools use USDT or USDC, and the platform may support other digital assets in the future.

CPOOL Tokenomics

CPOOL, Clearpool’s native token, has both governance and utility functionality. Borrowers can stake their CPOOL tokens to establish liquidity pools, and lenders can stake CPOOL to bolster lending interest rates and returns. Stakers can earn rewards, while also supporting Clearpool’s DeFi community. CPOOL can be traded on centralized exchanges such as Bybit.

There’s a fixed supply of 1 billion CPOOL tokens that’s maintained through a DeFi burning protocol and buybacks. Any tokens collected through buybacks are allocated between the rewards pool and the burn account.

CPOOL tokens are allocated as follows:

• Rewards: 20%

• Reserves: 17.17%

• Liquidity: 15%

• Team: 15%

• Ecosystem 10.15%

• Partnerships: 10%

• Private round: 9%

• Seed round: 3.33%

• Public round: 0.35%

CPOOL Price Prediction

As of Feb 28, 2024, Clearpool’s price is $0.1221, a decrease of 0.9% over the previous 24 hours. The current market cap is $54.8 million, and the 24-hour trading volume is $3.16 million.

CoinCodex is one of several sources predicting an increase in Clearpool’s price over the next several years. It sees CPOOL’s price reaching $0.30 by the end of 2025, $0.47 in 2027 and $1.36 in 2030. Meanwhile, DigitalCoinPrice predicts that CPOOL’s price will increase to $0.28 by the end of 2024, $0.56 in 2027 and $0.95 in 2030.

Where to Buy CPOOL

Looking to trade Clearpool tokens? Bybit now offers the CPOOL/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the CPOOL/USDT Spot trading page. 

To celebrate this listing, Bybit is holding two exclusive events so you can earn a share of the 1,100,000 CPOOL and 50,000 USDT prize pool. 

The first event, Deposit to Earn, will allow the first 3,000 new users who complete the following two steps through Mar 6, 2024, 8:59AM UTC to receive 300 CPOOL each:

1. Sign up for a Bybit account and complete Identity Verification.

2. Accumulate a deposit volume of at least 100 USDT worth of CPOOL, or deposit 100 USDT and use your Bybit account to buy any amount of CPOOL via your first trade.

If you’re already a Bybit user (prior to Feb 21, 2024, 4AM UTC), no worries — because you can still earn 100 CPOOL! Simply accumulate a deposit volume of at least 100 USDT worth of CPOOL, or deposit 100 USDT and buy at least 100 USDT worth of CPOOL using your Bybit account. Please note that rewards will be distributed on a first-come, first-served basis to the first 2,000 users.

The second event, Trade to Earn, is being held through Mar 4, 2024, 11:59AM UTC. Simply trade at least 500 USDT worth of CPOOL on Spot to grab a share of the 50,000 USDT prize pool. The more you trade, the larger your share of the prize pool. Please note that rewards will be capped at 5,000 USDT per user.

Is CPOOL A Good Investment?

Clearpool’s DeFi platform provides clear benefits by facilitating active loans between private and institutional borrowers and lenders. In addition, the CPOOL token stands apart from other digital assets in terms of its utility. The notable utility of CPOOL tokens and the departure of Clearpool from traditional finance solutions make the CPOOL token valuable to hold as an investment. Due to the anticipated price increase of CPOOL tokens over the next several years, liquidity providers will be able to stake them in order to generate a lucrative yield. 

Nevertheless, be aware of the volatility of digital assets before investing in this or any other cryptocurrency. Always complete your own in-depth research before making an investment.

Closing Thoughts

In the current credit market, traditional finance isn’t always ideal or even available for some individuals. Clearpool offers an alternative to traditional financial institutions, giving borrowers access to unsecured institutional liquidity. It’s an outstanding DeFi project that has already supported hundreds of millions of dollars in function. Clearpool is poised to continue growing in the years ahead.

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