Decentralized finance (DeFi) protocol Clearpool has announced the deployment of its institutional credit platform, Prime, exclusively on the Ethereum scaling tool Polygon network.
This move signifies Clearpool’s commitment to delivering institutional-grade DeFi products in partnership with the Polygon team.
Clearpool Prime will function 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 launch in the first quarter of 2023, and will cater to a diverse range of borrower profiles, including traditional trading firms, crypto-native players, and fintechs that provide lending solutions in the traditional finance (TradFi) world.
To ensure full compliance, the protocol has also opened the onboarding and whitelisting process for institutional borrowers and lenders, who must undergo know-your-customer (KYC) checks.
Clearpool’s choice to build on Polygon is significant because it sets the platform apart from competitors like Maple and TrueFi, which mostly operate on Ethereum’s network.
Polygon, on the other hand, is a sidechain for Ethereum that offers faster and cheaper transactions while maintaining Ethereum’s network security. The sidechain has recently secured partnerships with notable companies such as Instagram and Starbucks.
Clearpool Prime’s launch highlights the growing trend of DeFi protocols catering to institutional capital with TradFi-compatible products, especially after the crypto market’s implosion in 2022 wiped out most DeFi businesses.
Despite the market turbulence, Clearpool’s loan book has remained resilient, with a loan book value below $10 million compared to $108 million in November 2022, according to data by DefiLlama.