Clearpool has announced the latest single borrower pool to be launched on its DeFi protocol. The pool, launched by Nibbio, a crypto-currency-only, market-making and arbitraging firm, will be available exclusively on the Clearpool Ethereum market.
To learn more about Nibbio, Clearpool interviewed their team to introduce Nibbio to the Clearpool community.
Please tell us about Nibbio and its history
Nibbio is a leading crypto-currency-only, market making and arbitraging firm. After several years as high-frequency traders and developers in top-tier banks, we started our crypto journey in 2017 by developing our algos and risk management systems and were connected — at the time — to more than 150 crypto exchanges. Since then, we have gone through all the stages of developing a leader in crypto market efficiency, starting from basic triangular arbitrages to market-neutral strategies on derivatives, where we now provide liquidity across all the major trading venues — trading more than $5 billion volume daily.
What is Nibbio’s trading strategy?
Nibbio has grown over time and has run a variety of strategies: from our original triangular arbitrage, we moved into a more sustainable and scalable strategy. We are indeed best known for our market-neutral HFT strategy, running 24/7 and which never suffered any daily drawdown — this strategy has zero delta exposure.
Over time we have also developed a few other profitable directional and DeFi strategies and have closed several major VC deals in the crypto-space.
Why does Nibbio want to borrow capital right now?
Capital is the core of the crypto business as the crypto market can be rather capital intensive. We are interested in borrowing capital to keep scaling our market-making and arbitrage strategy and keep making crypto markets as efficient as possible. Indeed, in large market volatility events, Nibbio, along with other market-makers, put their algos at play to keep providing liquidity in these market conditions, and as the crypto market grows, it requires an ever-increasing amount of capital to be able to do so.
Why is Nibbio interested in borrowing from the Clearpool protocol compared to other DeFi or CeFi options?
Transparency and reliability are key in the crypto space, and the value proposition from Clearpool is totally aligned with Nibbio’s values.
We also value the fact that Clearpool is giving access to some yield-generating crypto products to more and more lenders and hence democratizes investment in crypto for everyone, which is key, according to us, to develop the whole ecosystem.
Nibbio has always been working both ways with its lenders where, when we benefit from a protocol, we give back to it, in the forms of visibility and feedback to enhance the borrowers’ experience and lenders’ offering.
What size does Nibbio typically borrow and seek to borrow on Clearpool?
Nibbio has the room and appetite for borrowing from US$5 million up to US$70 million.
Why should our community lend to Nibbio?
Nibbio has one of the strongest and most robust risk management systems across the crypto ecosystem and is, on many occasions, the first firm to report issues, bugs, and trading latencies to its counterpart crypto exchanges — and we are praised for that.
Nibbio founders and the team have a large personal stake in its strategies and are, hence, even more, diligent in the way it operates.
What are some of the risk management strategies in place to ensure lenders’ funds are not misused?
We have a strict wallet management policy and robust policies implemented and enriched through the years.
Do you provide other services or have additional business lines besides market-making?
We do provide execution services (I.e there is a coin you’d like to buy/sell with low market impact, we are able to do so for you against a fee).
How will you use the funds that are borrowed via Clearpool?
We will use it to run and scale up our main market-making / delta-neutral strategy.
Are there any media you would like to share with our community?
https://blog.ftx.com/blog/careful-when-long-bitmex/
https://coinstack.substack.com/p/crypto-hedge-funds-an-ecosystem-map
For our community who’d like to keep updated with your company, how should they do so?
Follow us on Twitter @Nib_bio
Nibbio’s Borrower Rating & Capacity
Clearpool has integrated Credora’s privacy-preserving technology to dynamically measure and publish Nibbio’s creditworthiness, and to present an accurate risk score without revealing sensitive information. As a partner, Credora helps ensure Clearpool liquidity providers are informed and can make risk-based assessments. At the time of writing, Nibbio has a borrower rating of ‘A’ and a total Borrow Capacity of US$102M.
To learn more about Borrow Capacity and the Credora Credit Evaluation Methodology, click here.
Want to lend to Nibbio? Click here to visit Nibbio’s pool on the Clearpool app.
