The first decentralized marketplace for uncollateralized lending, Clearpool, launches on the Polygon Network, “to provide greater capital efficiency and improved user experience.”
According to the announcement, it is anticipated that Clearpool’s integration with Polygon will boost user efficiency and vastly improve platform scalability.
Clearpool’s first blockchain integration following the launch on the Ethereum network is on Polygon. The marketplace believes Polygon enables faster and more affordable transactions for the decentralized user network of Clearpool.
With the deployment to Polygon, new borrower pools that are only available on the Polygon network will go live, including Parallel Capital and pools from borrowers who are already on Ethereum like Folkvang and Wintermute.
Through a network of lenders, Clearpool provides institutional borrowers with access to uncollateralized liquidity.
Once borrowers pass a whitelisting process operated by the Clearpool community, the marketplace enables institutional borrowers to build single-borrower liquidity pools and compete for uncollateralized liquidity provided by a network of decentralized lenders.
By providing more effective opportunities to manage and hedge risk through concepts like single-borrower liquidity pools and tokenized credit, Clearpool draws in new lender and borrower profiles to DeFi.
In addition to receiving additional rewards paid in its native token CPOOL, the liquidity providers (LPs) also receive yields based on pool interest rates.
In collaboration with quantitative trading firm Jane Street, and blockchain investment firm BlockTower Capital, Clearpool recently launched its first-permissioned pool.
Along with the USDC interest and CPOOL LP rewards available to LPs, with this Polygon integration, lenders to the genesis liquidity pools launched on Clearpool or Polygon will be able to farm MATIC rewards for a brief time.
The Clearpool team, according to Hamzah Khan, Head of DeFi and Labs at Polygon, is bringing innovation by providing a decentralized marketplace for unsecured institutional capital, while lenders can earn attractive risk-adjusted rates of interest.
“If we are going to onboard the next 1 billion users into Web 3, credit protocols like Clearpool are going to help lead the way,” Hamzah Khan added.