Clearpool Expands to Avalanche, Introduces Credit Vaults With Listed Fintech Banxa
In Brief
On-chain credit marketplace Clearpool expanded to the Avalanche blockchain, introducing a new RWA-backed product Credit Vaults.
On-chain credit marketplace Clearpool (CPOOL) announced its expansion to the Avalanche (AVAX) blockchain, introducing a new real-world asset (RWA) backed offering named Credit Vaults.
Credit Vaults are designed to accommodate the growing number of new on-chain borrowers, spanning fintech and payment companies, by offering stable rates and enhancing liquidity retention. This new product grants Clearpool’s borrowers the autonomy to establish their terms, encompassing interest rates and repayment frequencies.
Moreover, Credit Vaults facilitate higher lending Annual Percentage Yields (APYs) through full utilization, thereby increasing lending volume and protocol revenue and optimizing interest rates for lenders.
The first Credit Vault was introduced through a collaboration between Clearpool and Banxa, a publicly listed global infrastructure provider specializing in facilitating embedded cryptocurrencies within the payments sector. This Credit Vault initiative allows Banxa to borrow up to USDT 5 million initially, offering lenders the advantage of a seven-day repayment window and supplementary rewards in the form of the AVAX token.
Meanwhile, Cauris, an investment firm focusing on private credit for financial technology companies, has structured, will oversee, and is the servicer for the Credit Vault. Cauris implements security protocols, such as maintaining direct control over designated bank accounts for fund flow and critical covenants to ensure system integrity.
“Launching Credit Vaults on Avalanche marks a major milestone for Clearpool and the RWA sector as we pioneer migrating credit on-chain,” said Jakob Kronbichler, CEO & Co-founder of Clearpool. “Working with prominent players such as the listed fintech, Banxa, and experienced credit fund, Cauris validates the enormous potential of Credit Vaults to revolutionize the RWA DeFi space and drive institutional adoption,” he added.
Clearpool Protocol Bridges Institutional Liquidity Access between DeFi Markets
Clearpool’s protocol facilitates institutions accessing liquidity from DeFi markets. Additionally, a separate, fully permissioned platform, Clearpool Prime, addresses compliance requirements for wholesale borrowing and lending of digital assets by institutional market participants. Liquidity providers engaging with Clearpool can earn yields, with pool interest rates enhanced by supplementary rewards paid in the protocol’s token CPOOL.
Since its launch in 2022, Clearpool has facilitated the origination of over $480 million in loans, attracting a burgeoning user base comprising cryptocurrency-related and traditional finance institutions, including Wintermute and CoinShares, among others. The protocol debuted on the Ethereum mainnet during the same year.
Recently, Clearpool unveiled its roadmap for 2024, delineating its strategic initiatives for the forthcoming period. The roadmap encompasses the introduction of a new CPOOL pledge model, enhancements to protocol governance, and the introduction of a wider range of debit and credit products in the second quarter, aiming to expand its offerings and serve diverse user needs.
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About The Author
Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
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Alisa, a dedicated journalist at the MPost, specializes in cryptocurrency, zero-knowledge proofs, investments, and the expansive realm of Web3. With a keen eye for emerging trends and technologies, she delivers comprehensive coverage to inform and engage readers in the ever-evolving landscape of digital finance.
