AMA Recap: 10X CLUB x Clearpool
Part 1️⃣: Introduction. Rob, could you please tell us about Clearpool and your borrowing/lending protocol?
Clearpool is a decentralized marketplace for unsecured institutional capital. What that means is that institutional borrowers can open liquidity pools and compete for liquidity directly from the DeFi ecosystem without having to put up any collateral.
Overcollateralization in DeFi borrowing was and still is a huge pain point for borrowers in this space, so that is the problem that we set out to solve. Because we have removed the need for collateral, it means that counterparty risk is introduced. So we wanted to make sure that we built a protocol that didn't just solve the problem for borrowers but also gave lenders the ability to monitor and manage the risk that they take on by lending to these institutions.
On Clearpool, APRs are higher to compensate for risk, but we also introduce new concepts like single borrower liquidity pools, and tokenized credit, which provides the building blocks for risk management and hedging solutions.
I know that it’s a breakthrough in crypto for developing unsecured loans. Can you tell us more about how did the project start?
My co-founder is Alessio Quaglini who is also the CEO of Hex Trust. We go back years having worked together at a bank in our previous careers. We regularly kept in touch and talked about all things crypto. We got on to this subject of over-collateralization, some of his clients were familiar with the problem and it was gaining more attention in the market. We together came up with the original idea for Clearpool, and once we had an initial blueprint we sought feedback from some of our industry contacts. The feedback was overwhelmingly positive, so we knew we had something good. It was enough for me to quit my job and start building this.
Hex Trust is huge! It is one of the biggest crypto custodians in Asia! Talking about that could you share more about the long list of high profile investors and backers of Clearpool 😎
Plutus is very familiar with Hex Trust as well, this is one of the key reasons why we believe in Clearpool in long term would become the leader in the unsecured loans market.
Plutus of course! We had an early conversation and it was also great to receive such great feedback from the team! We were very lucky to be in the luxury position of being significantly oversubscribed for our investment rounds, so we were able to cherry-pick the investors we really wanted to work with. Sequoia Capital is a name that stands out to most, as they are more of a traditional VC making moves into the crypto space. Theor network is huge and they have a broad range of expertise. Sino Global Capital, Arrington Capital, HashKey Capital, Huobi Ventures, GBV are all names I am sure your community will be familiar with, they are true heavyweights in the industry and they all provide something unique. There are many more and I think it's better you check out our website & Medium to learn more about them. The round was also covered in Coindesk
You can’t find this list of high profile investors in any normal project ~
I believe your Clearpool project has a strong connection and works a lot with Hex Trust, can you give us more information about that?
Hex Trust has essentially been incubating Clearpool from the beginning. Obviously, we have a strong connection through Alessio, but Hex as a company realized early on that the potential synergies that would be created with this partnership would lead to huge opportunities for both Hex and Clearpool. Hex is regulated and licensed in Hong Kong and Singapore. This alone is huge. They provide a ton of experience and expertise when it comes to regulatory, compliance and best practices. They are also pretty good at custody! They are actually experts in this space and provide Clearpool with this expertise and advice, as well as help on things like transaction monitoring. They have a huge network and client base with over $6bn assets in custody, so for our BD team to have access to that is a massive competitive advantage.
Let’s move to Part 2️⃣: Twitter Questions $10/ 5 users
How many partners does your project currently cooperate with? Can you share a few more information about them? What benefits does your project receive from partners and vice versa? Based on what criteria do you choose your project partner?
Currently, we have announced partnerships with Hex Trust, X-Margin, Lithium Finance and PARSIQ, We are close to announcing some more exciting partnerships soon, and we are also working with a number of other service providers. The criteria are very simple, the partnership must add value to at least one part of the Clearpool ecosystem, but ideally, provide benefits to the entire ecosystem. As an example, our partnership with X-Margin helps both borrowers and lenders. Borrowers benefit because X-Margin’s technology helps them to build a transparent and strong credit profile, allowing them greater access to credit. For lenders it gives them the ability to see exactly how much risk the borrowers are taking in real-time and compare different borrowers based on the same metrics, significantly enhancing the decision making process. We don’t have time to discuss all of the partnerships here! But you can find out more about each one on our Medium.
I understand that you will issue cpTokens to liquidity providers, which can be then sold or staked to hedge against risk. However, isn’t selling off this token the same as selling your right to claim your share of the LP? How would LP providers be rewarded for the additional risk?
cpTokens represent the amount of liquidity that a lender has supplied to a pool, they accrue the interest rate for the pool, and they also represent the risk profile of the pool’s borrower. cpTokens can be redeemed at any time, subject to liquidity being available in the pool. If the pool has high utilization then the LP can turn to the secondary market for an additional source of liquidity. The price that the tokens trade in the secondary market will depend on supply and demand. If the secondary market is not liquid, LPs can utilize Lithium Finance wisdom nodes in order to obtain a consensus price for the tokens value, making price discovery much more efficient. This secondary market environment will also be the base layer for a number of other products which will allow LPs to manage and hedge risks, such as decentralized interest rates and credit derivatives.
Let’s take this chance to explain more, how can retail participate in Clearpool ecosystem as well? Tbh I believe truly that you are a grade A project, but I believe many retail investors find it difficult to get involved.
Anyone can be a lender on Clearpool, and everyone will have access to the same opportunities to earn high APYs regardless of the size of the lender. This is in contrast to traditional capital markets, which are largely closed off to retail investors and where the value accrues to the big players only. Clearpool levels the playing field, if a pool is paying 30% APR for lending stablecoins, that is available to you as well as institutional lenders.
It's simple, you connect your wallet to the app. You select a borrower you like and see their pool pays 8% APR interest and 22% APR in CPOOL rewards. You select that pool, enter the amount of USDC you want to lend, and click provide liquidity. Approving the transactions in your wallet along the way, you will receive cpTokens for that pool in return. When you want to redeem your liquidity you reverse the process and get back your original USDC + interest + rewards.
This is one of the big advantages of DeFi compared to traditional fin!
What about listing 1–3 killer features of Clearpool which can make it ahead of their competitors? Also, what’s the craziest advantage which can make you feel confident the most mate?
Clearpool is quite different to other projects that have set out to solve the same problem. The main difference is our innovation of single borrower liquidity pools. This gives lenders the flexibility of deciding exactly who they want to lend to and gives borrowers the ability to direct new lenders to their own pool. This is in contrast to multiple borrower pools where lenders get a generic/blended exposure to multiple borrowers, with no control on exactly who they lend to. In multiple borrower pools, borrowers with completely different risk profiles are grouped together, making it difficult for lenders to manage risk, and for borrowers to build a credit history/profile and borrower identity. The innovation of single borrower pools also allows Clearpool to be the first project to introduce the tokenization of credit, which we talked about in an earlier question. The level of sophistication that this brings in terms of risk management and hedging possibilities is very attractive to more traditional lender profiles, so the “most crazy advantage” is Clearpool will be the bridge between DeFi and the $130 trillion traditional capital markets! 💪🏻💪🏻💪🏻
Do the token holders have the right to participate in the governance of the project? On what kind of decisions can they vote on about the project? And do you have any plan to create other features? Maybe yield farm, stake, or NFT project? Can you explain in more detail?
Yes indeed. CPOOL is both a governance and utility token. In terms of governance, there are a number of protocol parameters that will be controlled by governance. CPOOL holders will also be able to vote on future changes and upgrades to the protocol. Whitelisting new borrowers is also something that will eventually be done by the CPOOL community; this action will qualify voters to earn CPOOL rewards.
CPOOL staking will also give holders the ability to enhance these voting rewards, as well as significantly enhance APRs for lending to liquidity pools through farming CPOOL (staking cpTokens). This entire mechanism, along with a buyback and burning model, will be very beneficial to long term holders. We are very excited to announce more details of this soon, please stay tuned!
DAO is really important for all web 3 projects! Security and user interface are the most important aspect that users see on a platform. How has your project worked on this? Is the platform suitable for newbies in the crypto world?
Security is of paramount importance to our team. We talked earlier about having Hex onboard for secure custody, but of course, we need to ensure the security of the smart contracts as well. Right now I am sitting next to Pavel, our CTO and we were just discussing earlier how clean our audit reports were when they came back from the audit companies. Clearpool smart contracts have been audited by Pessimistic Security and CertiK, and we have been very pleased with the audit reports, with only very minor observations reported. We have some features that will be released after our mainnet launch so we will continue to have the code audited and checked, as well as run a bug bounty program, which we did for our testnet which has been incredibly popular. The platform is ready for all types of users 👍🏻
Part 3️⃣: Telegram Q&A $10/ 5 users
I want to support your project, Tell us more about the Ambassador Program and in what ways can we participate?
Thanks, Kristel, we have been overwhelmed with more than 1000 applications for our ambassador program. Learn more about it and apply here: https://clearpool.medium.com/join-the-clearpool-ambassador-program-19112ae54737
Do you have Whitepaper if yes, please share it?
Whitepaper can be found here: https://docs.clearpool.finance/resources/documents
Where can I currently buy Token?
KuCoin, Gate and Ascendex, all linked from our landing page: https://clearpool.finance/?scrollTo=market
Can you explain how is your Tokenomics Distribution? How many tokens Will be minted? And How many tokens Will be locked by the team?
You can see more details of our tokenomics here: https://docs.clearpool.finance/cpool-1/tokenomics
Can you share social links so that we can join the CPOOL community and be up to date on new projects and implementation?
A great question to end the AMA!
And follow me on Twitter! https://twitter.com/Rob8830