Clearpool, a DeFi credit marketplace, announced the launch of its lending pool known as ‘Credit Vaults’ on Base, the Coinbase-built network sitting on top of the Ethereum blockchain. The move will give institutional investors access to on-chain, decentralized finance (DeFi) credit, the marketplace said on Tuesday.
Clearpool has claimed that crypto-native market-maker Portofino Technologies is leading its ‘first’ credit vault on Base. Portofino is said to use advanced technology to ease the buying and selling of crypto assets across exchange and over-the-counter (OTC) markets – something that’s expected to make it easier for institutions to borrow on Base.
Clearpool says institutions to get private credit on-chain
“This pivotal milestone opens new doors for a wide range of institutions to securely and compliantly access private credit on-chain on Clearpool,” Jakob Kronbichler, co-founder and CEO of Clearpool, said in a statement.
According to Clearpool, credit vaults allow borrowers to set their parameters for things like interest rates, repayment schedules, and KYC requirements. This way, users have “greater control and customization options.” It said the vaults also incentivize lenders with higher interest rates by optimizing efficiency and attracting new participants.
At the time of writing, Clearpool’s credit vault on Base already has over $105,000 in total value locked or TVL – the total sum of assets currently managed under a protocol – according to its website. The company operates a similar vault on Avalanche and several other so-called ‘dynamic pools’ that currently hold $85 million in TVL.
Clearpool says it has originated over $559 million of loans since it was established in March 2022. The protocol said 21 institutions have used its platform to launch borrower pools, including Jane Street, listed firms Banxa and Flow Traders, and top crypto trading outfits like Wintermute.
For Kronbichler, the choice to launch on Base was clear. The budding Ethereum layer two (L2) blockchain is open and permissionless, “with the security, stability, and scalability needed to power onchain apps with seamless integration capabilities for fiat onramps,” Clearpool said.
The company’s launch on Base comes at a time when legacy institutions are making big moves in the crypto industry. The Bitcoin and Ethereum exchange-traded funds (ETFs) have attracted mainstream players like the asset manager Blackrock.
Cryptopolitan Reporting by Jeffrey Gogo