According to a blog post published on Monday revealing plans for 2023, Clearpool, a decentralised finance (DeFi) lending protocol, will introduce its noncustodial institutional borrowing platform Clearpool Prime in the first quarter of this year.
After passing know-your-customer checks, institutional borrowers will be able to construct so-called permissioned borrowing pools on Clearpool Prime with their own set of lending conditions, such as loan amount, length, and interest rate. They will also have the option of inviting lenders to the pool.
A blockchain-based credit marketplace called Clearpool links borrowers and lenders by hosting lending pools. When a lender contributes liquidity to a pool, they are compensated with so-called cpTokens that are unique to the pool. CPOOL, the protocol’s governance token, is held by those who can vote with it and stake it for rewards. According to information on Clearpool’s loan dashboard, almost $350 million worth of stablecoin loans have so far been generated on the Ethereum and Polygon blockchains.
The launch of Clearpool’s new platform coincides with DeFi protocols’ efforts to entice seasoned institutional investors with more complex products in order to increase lending following a dismal previous year. As the cryptocurrency market crashed and numerous large borrowers, including crypto trading firms, went bankrupt, centralised lenders like Celsius Network and CoinDesk’s sister company Genesis experienced liquidity issues, and several decentralised lending protocols were left with defaults and bad debt.
