Clearpool

Lending

Clearpool is a lending market that connects financial institutions (borrowers) with individual investors (lenders) to facilitate uncollateralized loans.

Risk Rating
Watch Out
Protocol Code Quality
Protocol Maturity
Protocol Design
Summary
What we like
Clearpool lenders can earn highly attractive interest rates for supplying liquidity to an institution's borrower pool.
What we like less
Only whitelisted institutions can borrow unsecured loans on the platform. These institutions borrow without depositing any collateral, which leaves minimal protection for lenders in the event of default.
What it means for you
Offers you some of the highest yields on stablecoins across DeFi lending platforms, albeit with the added risk of no collateral backing.
Information
Exploit/Hacks
None
Info
  • Website
  • Token: CPOOL
  • Tags: Lending
Key Metrics
  • TVL: $4.2M (Rank #174)
  • TVL Ranking by Lending: #0
  • Blockchain: Optimism, Ethereum, Mantle, Polygon, Polygon zkEVM, Avalanche, Arbitrum, Base, Flare
  • Chain TVL
    • Optimism: $2.44M
    • Ethereum: $1.66M
    • Mantle: $68.29K
    • Polygon: $41.14K
    • Polygon zkEVM: $32.18K
    • Others: $45.01
Risk Assessment
Watch Out
Protocol Code Quality
  • Code reviewed by at least one experienced auditor; Pessimistic audited in May 2022
  • Public team promotes accountability
  • No documented protocol hacks since launch
Protocol Maturity
  • Core protocol launched in 2022; maturity over nine months reduces technical risk as smart contracts are sufficiently battle-tested
  • Top 20% by total value locked slightly reduces risk
  • Multisig wallet controls protocol upgrades
  • Multisig consists of less than 4 signers, which makes the protocol more susceptible to centralization risks
  • No timelock exists or no information documented, which mean a malicious actor could approve upgrades without any delay
  • At least one critical governance issue documented
  • Highly concentrated voting power increases risk
Protocol Design
  • Protocol could be susceptible to negative feedback loops
  • Unsecured lending market with minimal investor protection mechanisms to recoup debt repayments in the event of default
Things to know about Clearpool

How Clearpool works

Clearpool is a lending platform that provides uncollateralized loans to institutions. In order to access the platform, institutional borrowers must first go through standard KYC/AML procedures. Borrowers must also stake a certain amout of CPOOL tokens in order for their borrower pool to be launched. This stake amount is calculated as the lower of either 1% of the average pool size of all current permissionless pools or 0.5% of the borrower capacity. A credit risk score and borrower capacity is calculated by Credora. Lastly, the borrower needs to apply to be whitelisted by the Clearpool community, or CPOOL token holders, through a governance vote. Following approval, the institution has its own borrower pool that is of continuous duration, with each pool having its own dynamic interest rate that changes based on the amount of total pool liquidity the borrower is using. Lenders receive cpTokens in exchange for funding an institution's pool that represent their deposited funds and interest accrued. Each borrower pool also has its own recovery pool, which collects a percentage of interest from each block that is used in case of default. A default process starts if a pool reaches a 95% utilization rate. In this state, borrowers will not be able to remove liquidity when a pool is in high utilization, though interest will continue to accrue. Lenders may still provide and withdraw liquidity during this time. In the even that the utillization rate reaches 99%, the pool will enter the Warning state. In this state, neither the borrower nor the lender can withdraw liquidity, and the pool enters a 120-hour grace period whereby the borrower must reduce its utilization rate below the 95% threshold in order for the pool to remain active. Once this grace period passes, the pool is in default and triggers an auction to allow participants to bid for the pool's cpTokens. Bidders can be individuals or institutions but must be whitelisted.

How Clearpool makes money

Each borrower pool on Clearpool has an insurance account. Every block, a governance approved percentage (currently 5%) of the pool's interest is collected and sent to the insurance account. In the event of default, this insurance value can be claimed by the pool's cpToken holders (lenders), following an auction process. When the pool is closed, the insurance amount is transferred to protocol revenue. Clearpool also diverts a governance approved percentage (also 5%) of pool interest to the revenue pool on each block. Revenue is transferred from every borrower pool to a single unified revenue pool. This pool can be used for protocol development and CPOOL buybacks.

How you make money on Clearpool

You earn lending fees on Clearpool by depositing your stablecoins to be used by institutional borrowers looking for leverage. Clearpool further enhances its yield by offering its native CPOOL token as an additional incentive.

Clearpool Pools
Clearpool-Auros USD Lending
13%
Yield
$284K
TVL
Risk
D
Protocol
Clearpool
Chain
Polygon