DeFi Protocol Clearpool Collaborates with Polygon Network for Its Institutional Lending Platform

DeFi protocol Clearpool announced that it will launch its institutional credit platform Prime exclusively on Ethereum scaling tool Рolygon network.

DeFi Protocol Clearpool Collaborates with Polygon Network for Its Institutional Lending Platform

“We have been working closely with the Роlygon team since we launched the permissionless protocol on Pоlygon in June,” Rob Alcorn, CEO and co-founder of Clearpool, said in an email. “We have a strong relationship and continue to work together to deliver institutional DeFi products.”

Clearpool Prime

Clеarpool Prime will be an institutional-grade capital marketplace, where borrowers will be able to create credit pools, and liquidity providers can invest to earn yield. According to the CoinDesk’s report, the platform will start to operate in the first quarter of 2023.

“Expect to see a wide range of borrower profiles: from traditional trading firms to various types of crypto-native players,” Jakob Kronbichler, Clearpool’s co-founder and chief operating officer, said in a statement. “Prime is also attractive to fintechs that provide lending solutions in the TradFi (traditional finance) world, such as loans in emerging markets.”

What Benefits This Collaboration Will Bring?

Recently Clеarpool has also opened the onboarding and whitelisting process for institutional borrowers and lenders, who must endure know-your-customer verifications to be fully compliant, according to the protocol’s press release. Clearpool’s collaboration with Рolygon has big importance because borrowing and lending activity on competitor protocols like Maple and TrueFi mostly carried out on Ethereum’s network.

Polygon

Роlygon, a sidechain for Ethereum, offers cheaper and faster transactions by batching transfers on its proprietary proof-of-stake blockchain while relying on Ethereum’s network for security. Recently Рolygon entered into notable partnerships with Instagram and Starbucks.

Trend of Decentralization

After the cryptographic implosion that destroyed most of companies, the launch of Clearpool Prime highlights an increasing trend towards decentralization of loan protocols catering to institutional capital with TradFi-compatible products .

DefiLlama’s reports show that Clеarpool’s loan portfolio fell below $10 million, down from $108 million in November.

Роlygon’s global head of institutional capital Colin Butler on this week’s CoinDesk’s Money Reimagined podcast claimed that 2023 probably will be a pivotal year for institutional decentralized finance. Роlygon’s token MATIC gained 68% since January 1 and is considered one of the best performers of the top 10 cryptocurrencies this year.

Source

https://www.coindesk.com/

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