Clearpool Launches Credit Vaults on Coinbase’s Base Blockchain

2024-07-03
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Clearpool, a decentralized finance (DeFi) credit marketplace, launched its lending pool named “Credit Vaults” on Base, the Ethereum blockchain’s Coinbase-built network. This move aims to provide institutional investors with access to decentralized finance (DeFi) credit directly on-chain, as announced recently. Clearpool noted that Portofino Technologies, a crypto-native market-maker, is leading its first credit vaults on Base, leveraging advanced technology to facilitate crypto asset trading across exchanges and over-the-counter (OTC) markets, streamlining borrowing for institutions.

 

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Key Takeaways

  • Clearpool introduces a DeFi ecosystem with permissionless liquidity pools, offering institutions flexible capital and market-driven returns through customized borrowing terms.

  • Launching on Base, Clearpool provides secure, customizable borrowing options for institutions, optimizing efficiency in crypto asset trading globally.

  • Clearpool’s initiative supports the expanding DeFi landscape, attracting significant institutional interest and fostering innovation in decentralized finance.

What is Clearpool?

Clearpool is a decentralized finance (DeFi) ecosystem incorporating the first-ever permissionless marketplace for unsecured institutional liquidity. Driven by market forces of supply and demand, Clearpool’s permissionless single-borrower pools enable institutions to raise short-term capital while providing DeFi lenders access to risk-adjusted returns based on interest rates derived by market consensus. A second, fully permissioned institutional-grade platform further meets the compliance needs for wholesale borrowing and lending of digital assets by institutional market participants.

 

Read more: Building a Base: A Guide to Thriving Communities on the Base Network

Clearpool’s Achievement in Private Credit Access

Jakob Kronbichler, co-founder and CEO of Clearpool, highlighted that this significant achievement unlocks new opportunities for various institutions to securely access private credit on-chain through Clearpool. According to Clearpool, credit vaults empower borrowers to set terms such as interest rates, repayment schedules, and KYC requirements, providing enhanced control and customization. These vaults also incentivize lenders with competitive interest rates, optimizing efficiency and attracting new participants.

 

Clearpool’s credit vaults on Base currently hold over $105,000 in total value locked (TVL), and the platform manages another $85 million across various “dynamic pools”. Since its inception in March 2022, Clearpool has facilitated over $559 million in loans, collaborating with 21 institutions to launch borrower pools. Clearpool selected Base, Ethereum’s layer two (L2) blockchain, for its open, permissionless, and seamless integration capabilities in security, stability, scalability, and seamless fiat onramps integration. This launch coincides with a significant period of growth in the crypto sector, attracting established entities like Blackrock to Bitcoin and Ethereum exchange-traded funds (ETFs).

 

Read more: How to Buy: Clearpool (CPOOL)

Conclusion

Clearpool has made a significant stride in the decentralized finance (DeFi) realm with the launch of its “Credit Vaults” on Base, the Ethereum blockchain’s Coinbase-built network. This initiative marks a milestone in providing institutional investors direct access to DeFi credit on-chain. Led by Portofino Technologies, Clearpool’s pioneering approach streamlines borrowing processes for institutions, leveraging advanced technology to enhance crypto asset trading efficiency. With over $105,000 locked in its Base credit vaults and managing $85 million in dynamic pools, Clearpool continues to expand its influence, facilitating over $559 million in loans since its inception. This move underscores Clearpool’s commitment to fostering innovation and accessibility in the DeFi landscape.

FAQ

What is Clearpool and how does it work?

Clearpool is a decentralized finance (DeFi) platform that provides institutional liquidity through permissionless borrowing and lending pools. It allows institutions to raise capital with customizable terms while offering DeFi lenders risk-adjusted returns based on market consensus.

What are Base and its advantages in DeFi?

Base is a layer two (L2) solution built on the Ethereum blockchain by Coinbase. It offers an open and permissionless environment for decentralized applications (dApps), including DeFi initiatives like Clearpool’s “Credit Vaults”. Base provides enhanced security, scalability, and seamless integration with fiat onramps, supporting efficient crypto asset trading globally.

Why did Clearpool choose Base for its DeFi initiative?

Clearpool selected Base for its open and permissionless infrastructure on Ethereum’s layer two (L2) blockchain. This choice ensures secure, scalable, and seamless integration, facilitating institutional access to DeFi credit while supporting compliance and innovation in the crypto sector.

Disclaimer: The content of this article does not constitute financial or investment advice.

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