Lithium Finance and Clearpool Partner to Create a Liquid Secondary Market for LP Tokens
Clearpool, a decentralized capital markets ecosystem, has partnered with Lithium Finance, the first decentralized data oracle solution, to price Clearpool LP tokens (cpTokens).
Clearpool enables institutional borrowers to create single borrower liquidity pools and compete for uncollateralized liquidity directly from the DeFi ecosystem. The integration and partnership with Lithium Finance will ensure an efficient risk management mechanism necessary for its revolutionary dynamic market powered by its native $CPOOL token.
- Through Clearpool, institutional borrowers compete for uncollateralized capital from a growing list of lenders, including leading crypto VCs, family offices, and the DeFi ecosystem.
- Liquidity providers and lenders will then receive access to Clearpool’s comprehensive risk management solutions to enable efficient hedging, management, and monitoring of lending activities.
As a lender (or LP) on Clearpool, you will receive cpTokens relevant to that specific pool in return when you provide liquidity to a pool. cpTokens represent the liquidity that has been supplied to the pool and accrues interest on every block. cpTokens also represent the credit profile of the pool borrower. cpTokens can be redeemed at any time, subject to liquidity, or traded in a secondary market, giving LPs an additional source of liquidity.
With the integration of Lithium Finance, Clearpool LPs will be able to efficiently price this tokenization of credit by leveraging Lithium’s Wisdom Nodes and DMI mechanism. By submitting questions about the valuation of tokenized credit across the secondary markets, Lithium’s robust DMI mechanism will determine the ultimate consensus accordingly and feed this value to Clearpool’s users, ensuring adequate risk management and governance.
“We are very excited to partner with the Clearpool team on such an innovative product. Through this partnership, we will be one step closer to achieving our goal of providing timely, efficient, and relevant pricing to the broader DeFi ecosystem,” — David Lighton, Co-founder of Lithium Finance
“We’re opening up credit in the DeFi space. This partnership with Lithium will provide a framework for price discovery which will create an efficient and liquid market for tokenized credit, giving lenders more optionality and enhancing the innovations in risk management that Clearpool is introducing to DeFi.” — Robert Alcon, CEO of Clearpool Finance.
About Lithium Finance
Lithium Finance is the first collective-intelligence pricing oracle to give precise and timely pricing on private, illiquid assets. It rewards analysts who provide truthful information and punish those who offer false pricing data. As a result, Lithium’s users effectively obtain pricing for all hard-to-value assets such as pre-IPO stocks, private equity, and other illiquid assets.
Clearpool is a decentralized capital markets ecosystem where institutional borrowers can access unsecured liquidity and where liquidity providers can earn attractive risk-adjusted returns.
The first decentralized dynamic marketplace for unsecured liquidity, where supply and demand always ensure each pool reaches a state of equilibrium in terms of size and interest rate.
A paradigm shift in how institutions borrow uncollateralized liquidity is upon us.