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Decentralized credit markets, often referred to as decentralized lending or decentralized finance (DeFi) lending, are financial systems built on blockchain technology that enable individuals and entities to lend and borrow assets without the need for traditional intermediaries like banks or financial institutions. These markets use smart contracts and decentralized platforms to facilitate lending and borrowing activities, creating a more open and permissionless financial ecosystem.
As of 2024, the DeFi market, which encompasses decentralized credit markets, has shown significant growth. The global decentralized finance technology market is anticipated to flourish at a Compound Annual Growth Rate (CAGR) of 28.4% from 2024 to 2034, with an expected market value of $919.8 billion by 2034. This growth is partly driven by the development of algorithmic stablecoins and the continuous evolution of DeFi protocols.
The private credit market in the US stands at approximately $1 trillion, and globally, it’s about $1.7 trillion. DeFi is revolutionizing this sector by enabling traditional real-world assets to be financed using DeFi protocols. As of now, the private credit market on DeFi rails is approximately $550 million in active loans.
Moreover, the decentralized finance market has seen a surge in players and strategic collaborations aiming to gain market share. Key players in this market include Compound Labs, Inc., MakerDAO, Aave, Uniswap, SushiSwap, Curve Finance, and others.
Clearpool’s Core Offering
Clearpool is a DeFi ecosystem that introduces the world’s initial open marketplace for unsecured institutional liquidity. Clearpool was co-founded by Robert Alcorn and Alessio Quaglini, who have extensive experience in cryptocurrency projects and firms. Operating in response to supply and demand dynamics, Clearpool’s open single-borrower pools allow institutions to secure short-term funding while granting DeFi lenders the opportunity to earn returns adjusted for risk, determined by consensus-driven interest rates. Additionally, a separate, fully authorized, high-quality platform caters to the compliance requirements of institutional market participants involved in borrowing and lending digital assets.
Loan Origination
Borrowers will create a pool with their terms without providing any collateral within the core smart contract. After the pool is created, the borrower can invite any other whitelisted institution to fund the pool. Loaned assets are transferred automatically and directly to the Borrower wallet address without Clearpool having custody at any point.
Lenders are whitelisted institutions that are invited to fund a borrower pool. They will receive a notification via email detailing the borrower and pool terms. Lenders can only lend money to pools that have asked them, and they can only do so during the supply window and terms of the pool.
Total Value Locked (TVL)
As of the latest update from their site, Clearpool has originated loans totaling $468,695,706.8, and the TVL across different pools is as follows:
| Pools | Total Value Locked (TVL) | Annual Percentage Rate (APR) |
| Ethereum | $11,686,739.96 | 12.15% |
| Optimism | $19,218,293.42 | 8.33% + 5% |
| Polygon zkEVM | $806,794.49 | 8.82% |
| CPOOL Staking | $19,134,239.57 | 45.1% |
| Prime | $3,056,752.88 | n/a |
Key Features and Products
Clearpool offers a range of products and features in its decentralized finance (DeFi) ecosystem. The key features and products include:
Permissionless Lending
This is a significant feature of Clearpool that allows users to lend and borrow assets without needing permission from a central authority. It operates on blockchain technology, ensuring transparency and security. Lenders can supply liquidity to various pools and earn interest, while borrowers can access these pools for their borrowing needs. The platform supports different blockchain networks like Ethereum, Optimism, and Polygon zkEVM, providing users with various options. Interest rates are dynamic and risk-adjusted, depending on the market conditions and the specific pool’s parameters.
Staking
Staking involves locking up the platform’s native token, CPOOL, to participate in the governance and security of the network. Stakers can earn yields on their staked tokens. The yield is generated from the interest paid by borrowers and is distributed among stakers. This feature also plays a critical role in the platform’s interest rate mechanism, with stakers having a say in how rates are set and adjusted.
CPOOL Bridge
The CPOOL Bridge is a mechanism that allows users to transfer CPOOL tokens between different blockchain networks supported by Clearpool. This feature enhances the flexibility and utility of the CPOOL token, allowing users to engage with the platform’s services across multiple blockchains. It facilitates liquidity movement and eases the process for users who operate on different networks, contributing to the interoperability of the DeFi ecosystem.
Clearpool Prime
Clearpool Prime is an institutional-grade decentralized finance (DeFi) platform designed for the lending and borrowing of digital assets. It offers KYC (Know Your Customer) and AML (Anti-Money Laundering) compliant access to a global network, catering to institutional users. Clearpool Prime is exclusively available on Polygon. The platform provides lenders with yield opportunities through high-quality institutional counterparties and allows borrowers to diversify their funding sources. Clearpool Prime ensures efficient trading with instant settlement and robust post-trade infrastructure. Additionally, users benefit from deep liquidity across multiple assets and high-quality institutional counterparties. The platform’s security is strengthened through the use of non-custodial smart contracts, which minimize contract risk while providing a secure framework for digital asset transactions.
Multichain Accessibility
Clearpool operates across multiple blockchain networks, including Ethereum, Optimism, and Polygon zkEVM. This multi-chain approach allows Clearpool to leverage the unique features of each blockchain, catering to a diverse user base and expanding its reach in the decentralized finance (DeFi) ecosystem. Here’s how Clearpool operates on these chains, along with insights into the average annual percentage rate (APR) and Total Value Locked (TVL) on each chain:
Ethereum (Permissionless)
Clearpool on Ethereum benefits from this network’s high level of security and trust. The average APR on Ethereum for Clearpool is about 12.15%, which is competitive and reflects the inherent risk and liquidity conditions of Ethereum in the DeFi market. The TVL on Ethereum for Clearpool is $11.68 million, indicating substantial participation and trust in the platform within the Ethereum ecosystem.
Optimism (Permissionless)
Optimism is a layer-2 scaling solution for Ethereum that aims to increase transaction speeds and reduce costs while maintaining the security properties of the Ethereum mainnet. By operating on Optimism, Clearpool can offer faster and cheaper transactions, which is advantageous for users who are sensitive to high gas fees and slower transaction times on the Ethereum mainnet. The average APR here is 8.33% + 5%, slightly lower than Ethereum, possibly due to the lower risk profile associated with layer-2 solutions. The TVL on Optimism is $19.21 million, which shows a healthy level of adoption and suggests that users appreciate the benefits of the Optimism layer.
Polygon zkEVM (Permissionless)
Polygon zkEVM is a scaling solution that leverages zero-knowledge proofs to enhance scalability and efficiency while ensuring a high level of security. This platform’s inclusion in Clearpool’s ecosystem signifies an emphasis on cutting-edge blockchain technology and a focus on scalability and efficiency. The average APR on the Polygon zkEVM network is 8.82%, which is indicative of the network’s risk profile and liquidity dynamics. With a TVL of $806K, it shows nascent but growing participation in this relatively new and technologically advanced blockchain.
Investment Details
| Round | Raised | Investor / Platform |
| SEED(Announced: 27 Sep 2021) | $3 Million | Sequoia Capital, HashKey Capital, Arrington XRP Capital, Kenetic Capital, GBV Capital, Sino Global Capital, FBG Capital, Wintermute, HTX Ventures, AscendEX, Hex Trust, BCW Group |
| Clearpool Initial Dex Offering | $ 40,000$ 100,000 | ZENDITDAO Maker |
| Initial Exchange Offering | $30,000 | Gate.io Startup |
Total funds raised: $ 3,170,000
Clearpool’s funding strategy, as indicated by the provided data, reflects a well-orchestrated approach combining traditional venture capital with decentralized finance mechanisms. The project successfully secured $3 million in a Seed funding round involving notable investors like Sequoia Capital and HashKey Capital, showcasing early-stage solid confidence. Additionally, Clearpool ventured into public markets via an Initial Dex Offering (IDO) on ZENDIT and DAO Maker and an Initial Exchange Offering (IEO) on Gate.io Startup, with amounts like $40,000, $100,000, and $30,000 respectively. This multi-faceted approach not only diversifies their funding sources but also broadens their investor base, balancing between institutional backing and community-driven support in the crypto space. The success of these initiatives will ultimately hinge on Clearpool’s market performance and its ability to navigate the dynamic DeFi landscape.
| Initial Values | |
| Market cap | $ 1,474,090 |
| FDMC | $ 40,000,000 |
| Circulating | CPOOL 36,852,238 |
In this case, Clearpool Finance has a market capitalization of $1,474,090 and a fully diluted market capitalization (FDMC) of $40,000,000. It has a low FDMC compared to its competitors, like Maple Finance, which has a high FDMC of $142.3 Million. Its FDMC is only $57.36 Million.
Token Details
| Market Cap | $ 49,980,486 |
| Fully diluted market cap | $ 112,573,004 |
| Circulated Supply | CPOOL 447,747,750 |
| Total Supply | CPOOL 1,000,000,000 |
| Max Supply | CPOOL 1,000,000,000 |
| Initial Dex Offering Price | $ 0.04 |
| Initial Dex Offering ROI | 2.79 times (+178.8%) |
The initial offering price of CPOOL on a decentralized exchange (DEX) was $0.04, and since then, the return on investment (ROI) for early investors has been substantial. The initial Dex Offering ROI stands at 2.79 times, or an increase of 178.8%, demonstrating significant growth and profitability for those who invested in CPOOL during its early stages.
| Token Allocation | |
| Total supply | CPOOL 1,000,000,000 |
| Private/Pre-sale | 123,333,330 (12.33%) |
| Public sale | 4,250,000 (0.43%) |
| Token Distribution | |
| Pool Rewards | 20% |
| Reserves | 17.17% |
| Liquidity | 15% |
| Team & Advisors | 15% |
| Other | 32.83% |
The CPOOL cryptocurrency has a total supply of 1 billion tokens distributed across various categories. A portion of these tokens, 12.33% (123,333,330 tokens), was allocated for private and pre-sale events, while a relatively small fraction, 0.43% (4,250,000 tokens), was available for public sale.
In terms of token distribution, 20% of the total supply is allocated for pool rewards, serving as incentives within the CPOOL ecosystem. Additionally, 17.17% is set aside as reserves, potentially for future contingencies or strategic use. To ensure market liquidity, 15% of the tokens are dedicated to this purpose. Another 15% is allocated to the team and advisors, recognizing their role in the project’s development and success. The remaining 32.83% falls under the ‘Other’ category, which could encompass a range of uses such as marketing, partnerships, development, or other operational needs. This diverse allocation strategy reflects a balance between immediate sales, long-term project sustainability, and rewarding those who contribute to the CPOOL ecosystem.
Conclusion
In conclusion, Clearpool represents a significant player in the rapidly growing decentralized finance ecosystem, offering innovative solutions for both institutional borrowers and lenders. With its permissionless lending feature and multi-chain accessibility across Ethereum, Optimism, and Polygon zkEVM, Clearpool provides users with flexibility, transparency, and competitive interest rates. The introduction of the CPOOL Bridge enhances the utility of Clearpool’s native token, contributing to the overall interoperability of the DeFi space. As decentralized credit markets continue to evolve and expand, Clearpool’s offerings and commitment to technological advancement position it as a key player in the DeFi revolution.
