Clearpool Enters Avalanche Ecosystem with Exclusive Credit Vaults Launch

With the introduction of new vaults from Clearpool, we’re seeing an effort to incorporate risk-bearing assets like private credits into uncollateralized lending for institutions. This innovation brings the attractive returns of private credit to the world of decentralized finance (DeFi), appealing particularly to trading firms, market makers, fintech businesses, and payment companies.

Exclusive Availability on Avalanche

The latest news states that Credit Vaults will only be available on Avalanche from now on, as part of their move to join this layer 1 blockchain. This is where the initial Clearpool RWA pool will be situated.

In partnership with Banxa, a well-known global infrastructure provider specializing in crypto embedment for payments, we have introduced a new product. This product caters to the requirements of lenders and borrowers operating within the cryptocurrency market.

Through our collaboration with Banxa, we’re working to revolutionize the way borrowing and lending function in the blockchain community. This innovative approach brings heightened efficiency and transparency to these transactions.

At Clearpool, we will handle the process of converting Banxa’s loans into digital tokens and transferring them onto the blockchain. As compensation, lenders will receive cpTokens reflecting their investment in the pool. The interest earned is automatically accumulated, simplifying the lending procedure for both borrowers and investors, ensuring a secure and hassle-free experience.

A Seven-day Repayment Period

At the Credit Vault, loans come with a flexible seven-day term for repayment, allowing borrowers to manage their finances effectively while ensuring prompt repayment.

In addition, lenders are given extra incentives in the form of AVAX tokens as a reward, making the proposition of joining the lending pool even more attractive to them.

At Clearpool, our Credit Vaults differ from typical lending platforms. Borrowers have the power to determine their own conditions, such as interest rates and repayment schedules. This adaptability is likely to draw a vast pool of borrowers, resulting in larger loan volumes and increased earnings for the platform.

Lenders can look forward to greater returns on their invested funds with DeFi vaults, which ensure full usage and thus increase the effective annual percentage yields (APYs). This improvement in efficiency makes DeFi lending more appealing and profitable for everyone involved.

A Significant Milestone

Clearpool’s CEO, Jakob Kronbichler, considered the company’s expansion into Avalanche as a significant achievement for Clearpool.

“Reaching the point of introducing Credit Vaults on Avalanche is a significant achievement for Clearpool and the RWA sector, as we lead the way in transferring credit transactions onto the blockchain. Collaborating with recognized fintech company Banxa and skilled credit fund Cauris underscores the immense potential of Credit Vaults to transform the RWA DeFi industry and accelerate institutional acceptance,” stated Kronbichler.

At a point of significant expansion for RWAs (Reserve Wallets Assets) in the Avalanche network, the unveiling of credit vaults takes place.

Last year, the protocol introduced “Avalanche Evergreen Subnets” as a new feature. This allows financial institutions to experiment with tokenization and explore the benefits of on-chain financing in a secure and regulated setting.

Banking behemoth J.P. Morgan was an early pioneer in experimenting with the Evergreen Subnet through its subsidiary Onyx, to assess the capability of tokenization in streamlining portfolio management processes.

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2024-04-03 13:21