Clearpool, the decentralized finance (DeFi) protocol, has announced that its institutional credit platform, Prime, will be deployed exclusively on Ethereum scaling tool Polygon network.
The CEO and co-founder of Clearpool, Rob Alcorn, stated that the company has a strong relationship with the Polygon team and will continue to work together to deliver institutional DeFi products.
Clearpool Prime will act as an institutional-grade capital marketplace where borrowers can create credit pools and liquidity providers can invest to earn yield.
The platform is set to begin operation in the first quarter of 2023 and is expected to cater to a wide range of borrower profiles, including traditional trading firms, crypto-native players, and fintechs that provide lending solutions in the traditional finance world.
The onboarding and whitelisting process for institutional borrowers and lenders has been opened by the protocol and these individuals must undergo know-your-customer (KYC) checks to be fully compliant with the protocol’s regulations.
Clearpool’s decision to build on Polygon is significant because it sets it apart from its competitors, like Maple and TrueFi, whose borrowing and lending activities mostly take place on Ethereum’s network.
Polygon is a sidechain for Ethereum that offers faster and cheaper transactions by batching transfers on its proof-of-stake blockchain while relying on Ethereum for security. The network has secured notable partnerships with companies like Instagram and Starbucks.
Clearpool Prime’s launch highlights the trend of decentralized lending protocols catering to institutional capital with TradFi-compatible products.
This trend is driven by the growing demand for institutional decentralized finance after the crypto implosion in 2022 wiped out most of the DeFi businesses.
According to data by DefiLlama, Clearpool’s loan book has dropped below $10 million from $108 million since November 2022.
