Clearpool operates as a Decentralized Capital Markets Ecosystem that enables institutional borrowers to obtain unsecured loans directly from the DeFi space. The platform utilizes a dynamic interest model determined by market supply and demand.
Liquidity providers on Clearpool can generate appealing yields, with pool interest rates boosted by extra LP rewards distributed in CPOOL, the protocol’s utility and governance token. Clearpool LP tokens, known as cpTokens, serve as the foundation for a tokenized credit system designed to offer Clearpool LPs risk management and hedging tools.
As institutions increasingly recognize the advantages decentralized finance offers their organizations, Clearpool aims to supply the new architecture needed to bridge flows between the $120 trillion traditional capital markets and the growing DeFi ecosystem.
The CPOOL Token
- CPOOL functions as the utility and governance token for the Clearpool protocol.
- CPOOL holders will vote on the whitelisting of new borrowers, a procedure that will allow participants to qualify for additional CPOOL via an incentive reward scheme.
- Borrowers are required to stake CPOOL to access the section of the protocol where they can submit proposals for whitelisting.
- Liquidity providers receive extra CPOOL rewards, which increase pool interest rates to attractive levels.
- Clearpool plans to announce a buyback program, using a portion of protocol revenue to purchase CPOOL on the open market to continuously sustain reward pools.