In a groundbreaking move, Clearpool, a leading player in the decentralized finance (DeFi) sector, has announced its expansion to Polygon’s zkEVM, marking the third blockchain solution to be integrated with the protocol’s lending marketplace. This strategic move is set to revolutionize the lending marketplace by enabling high-speed transactions, reducing fees, and enhancing security.
Clearpool Aims For Further Growth Into The Polygon Ecosystem
Clearpool, known for its innovative approach to DeFi lending, has been at the forefront of integrating advanced blockchain solutions to provide a seamless and efficient lending marketplace. The integration with Polygon’s zkEVM showcases Clearpool’s commitment to uplifting robust technology to deliver superior services to its users.
Fasanara and Portofino, market makers and borrowers of Clearpool since March 2023, have now launched the first permissionless lending pools on the Polygon zkEVM Layer 2 platform.
Polygon’s zkEVM, a scaling solution designed to enhance the scalability of decentralized applications (dApps), is a key component of Polygon’s suite of solutions. A Zero Knowledge roll-up, or zk roll-up, is a mechanism that allows transactions to be batched together before being approved on the Ethereum main chain.
Once the zk roll-up is deployed, Ethereum provides a validity proof through a cryptographic proof. This means that Polygon’s zkEVM, which is equivalent to Ethereum, can execute its byte code on both layer 1 and layer 2. This dual-layer functionality enhances the efficiency and flexibility of transactions.
Clearpool’s decision to integrate with Polygon’s zkEVM is a significant development that’s set to bring about a host of benefits for its users. First and foremost, this integration will supercharge Clearpool’s platform performance, leading to faster transaction speeds.
The integration with Polygon’s zkEVM will also lead to lower transaction fees. This is a game-changer as it makes the lending marketplace more accessible to a wider audience. Additionally, the enhanced security offered by zkEVM will provide Clearpool borrowers with the confidence to transact, knowing that their transactions are secure.
Clearpool Expands Its Multichain Growth
In a continued collaboration with Idle, a decentralized yield automation protocol that has been Clearpool’s Oracle since January 2023, Clearpool is enhancing its zkEVM ecosystem with the introduction of Idle Yield Tranches (YTs). These innovative DeFi primitives, built on top of the zkEVM pools, allow for the segmentation of yields and risks, thereby catering to a diverse range of users.
The Idle Yield Tranches offer two distinct risk-return profiles, namely Senior and Junior, providing liquidity providers with the flexibility to lend digital assets based on their preferred risk/reward level. This dual-tranche system is designed to accommodate the varying risk appetites of different investors.
Junior tranches are designed for those seeking higher returns and are willing to assume greater risk. In exchange for the potential for boosted returns, Junior tranche holders provide coverage to the Senior tranches. On the other hand, Senior tranches are designed for those seeking lower risk. These tranches come with a lower annual percentage rate (APR) but offer the advantage of enhanced protection of funds.
Robert Alcorn, CEO and co-founder of Clearpool, said, “This integration is a key step for the protocol by adding another building block to Clearpool’s expanding ecosystem.” He added, “Since its inception, Clearpool was designed to be a multichain protocol that is cost-effective, seamless, and scalable to provide value, efficiency and accessibility for millions of users. We continue to deliver on that strategy and vision.”
Jack Melnick, Polygon Labs Head of DeFi BD, commented, “We are excited to see Clearpool’s further growth into the Polygon ecosystem. The integration strengthens the DeFi landscape on Polygon and reinforces our commitment to providing diverse financial solutions for the growing community.”
Since its launch in March 2022, Clearpool has made impressive strides, originating over $400 million in loans and attracting a diverse user base that includes crypto and traditional finance institutions like Wintermute, Jane Street, Fasanara Capital, and CoinShares.
After launching its mainnet on the Ethereum network in March 2022 and Polygon PoS in July 2022, Clearpool has established itself as a scalable multichain platform. In August 2022, it further expanded its capabilities by integrating with LayerZero, an omnichain interoperability protocol. This allows dApps to work across multiple blockchains and enables direct bridging of CPOOL between Ethereum and Polygon via the Clearpool app.
