Clearpool (CPOOL): What is it?

Using Clearpool as a decentralized capital markets solution, uncollateralized liquidity can be utilized in a completely new way. With the financing solution, major organizations can borrow uncollateralized liquidity differently. The Clearpool project also aims to make collateral available to all participants everywhere and to eliminate their risk of liquidation.

Many new protocols have been introduced by the platform due to its novel technological advances, which will revolutionize global DeFi Lending. In addition to offering unsecured liquidity from DeFI, Clearpool also represents an effective solution for risk management and hedging for institutions and liquidity providers.

Using Clearpool’s decentralized algorithm, traditional financing has been effectively adapted and redesigned to fit current trends in DeFi. Through this, intermediaries are no longer needed, hefty costs are avoided, as well as long-term borrowing and lending delays are eliminated.

In the past, TradFi’s continuous renovation has yielded immense benefits to lenders and borrowers, enabling tremendous growth in the DeFi space and creating opportunities for lenders.

Tokenized credit protocols, single borrower liquidity pools, and Clearpool’s single borrower liquidity pools allow all liquidity providers on the platform to reap lucrative dividends. The only way to achieve this is through a system of tokenized credit, which provides sophisticated solutions for risk management.

The protocols will also improve efficiency by granting lenders access to credit scores attributed to institutional borrowers only after a KYC process and before they are granted loans with lower collateral requirements.

cpTokens

In addition, cpTokens represent the risk that the lender has assumed in funding the borrower. As a whole, the token opens LPs up to a world of possibilities for trading, managing, and hedging risks.

With cpTokens, the LPs would be able to trade the risk to reduce or eliminate their exposure, just as they would with bonds in TradFi. The secondary market allows new investors to purchase cpTokens that give them exposure to certain risk/reward profiles.

Earlier this month, the decentralized platform, in partnership with Hex Trust, airdropped CPOOL tokens to lucky Hong Kong residents for an approximate $10 to $100 value.

CPOOL

Tokenize the governance of Clearpool by using the CPOOL token. Whitelist borrowers’ approval is accomplished via CPOOL through a consensus among token holders. The engine behind Clearpool’s ecosystem is the CPOOL token, an ERC-20 token.

A Clearpool will give cpTokens to an LP every time they provide liquidity. These tokens are issued in exact proportion to the liquidity provided. Also, interest accrues in the currency of the pool and is paid in that currency, whereas LP rewards are paid in CPOOL, the governance token of Clearpool. 

The Clearpool and the DeFi

Clearpool has been struggling with over-collateralization in the DeFi sector. In the lending and borrowing space, the decentralized platform has set in motion a series of algorithms that have successfully addressed problems.

As such, Clearpool is more than just a lending and borrowing platform; it is a “decentralized capital markets ecosystem” with unique products designed to make debt capital markets more efficient and effective.

With a size of $123 trillion, the credit market offers a lot of value. The platform will exploit TradFi and the credit market. The size of the market allows Clearpool to target financial institutions, supranational entities, governments, and corporations that are well known for their lending/borrowing habits, and offer them solutions for managing and lending potential risks.

DeFi and TradFi have been successfully bridged by Clearpool. Developed to grow within the DeFi space, the protocol has proven to be a success. Increasingly decentralized financial services are taking over the traditional financial system, which is on pace to surpass it.

Partnership with Hex Trust

Platform added Asia’s leading digital assets provider, Hex Trust, to its partnership portfolio. As part of the agreement, Clearpool will gain access to Hex Trust’s expertise in creating unique and efficient custody solutions, along with compliance services, to protect all lenders against counterparty risk.

In addition to offering Keyholder Identification, Transaction Monitoring Services, as well as Identity Verification Tools to participants, the dynamic partnership will facilitate the full implementation of Clearpool’s various services.

The leading digital asset custodian in Asia, Hex Trust, is fully a licensed, insured, and reputable supplier of high-quality custody services. Hex Trust is a Hong Kong-based company that wants to provide its customers with “a seamless, secure, scalable, and compliant way to integrate digital assets into their business operations.”

As a result of Hex Trust’s unique protocol, any user can access liquidity providers, exchanges, lending, and staking while taking advantage of platforms like Clearpool. In summary, Hex Trust provides financial institutions seeking to provide services to their clients regarding digital assets with access to blockchain technology.

Alessio Quaglini, CEO of Hex Trust, says that “As blockchain becomes the underlying infrastructure for financial instruments, every financial institution will need a platform for managing their presence on the blockchain.”

Under the Hong Kong Trust Ordinance, the platform is licensed as a trust company, while it is also licensed as a Trust and Company Service Provider (TCSP) under the Anti-Money Laundering and Counter-Terrorist Financing Ordinance. In Singapore, Hex Trust is licensed to provide custodial services based on requirements of the Singapore Securities and Futures Act, as well as a Capital Markets Services (CMS) license.