ON–142: Polygon (Part 2)
Coverage on Clearpool.
Oct 14, 2022
- Clearpool is a decentralized lending marketplace to connect retail investors with institutions deployed on mainnet and Polygon. It allows whitelisted institutions to create individual single-borrower liquidity pools, and for investors to deposit into these pools and earn interest. So far, over $150m has been deposited across 8 institutions – Jane Street, Wintermute, Amber Group, amongst others – yielding around $2.8m in total interest to hundreds of retail lenders.
- One would naturally assume that institutional lending would only attract institutional investors. However, a deep-dive into Clearpool's liquidity pools proves quite the opposite. While there is indeed one whale across several pools, there are over 200 unique retail investors securing the pools too.
- Clearpool Finance has also sought to be capital-efficient. Although it has circuit-breaker mechanisms in place to monitor excess utilization, it maintains 80%+ utilization on all its pools. Clearpool APRs are tracking over 8% - high passive income in a fairly low-risk environment.
