Clearpool, a decentralized capital markets ecosystem, has received $3 million in funding from a number of prominent crypto investors to further its decentralized finance (DeFi) ambitions of enabling institutions to borrow uncollateralized liquidity.
The project is being incubated by digital asset custodian Hex Trust, which will provide custody and compliance services such as know-your-customer (KYC) checks and transaction monitoring of Clearpool’s borrowers, according to a press release shared with CoinDesk on Tuesday.
The fresh injection of capital will go toward furthering the project’s protocol while launching additional features such as decentralized credit derivatives.
Funding has come via major players Arrington Capital, GBV Capital, HashKey Capital, Hex Trust, Sequoia Capital India, Sino Global Capital and Wintermute. Ascendex, BCW Group, FBG Capital, Folkvang, Huobi Ventures and Kenetic Capital also participated.
Clearpool allows institutions to borrow uncollateralized liquidity, while liquidity providers receive rewards and various risk management solutions.
Unlike traditional finance, DeFi lenders lack access to credit scores and risk profiles. Clearpool aims to enable lenders with the ability to better determine borrowers’ creditworthiness by providing access to key information via a real-time credit scoring mechanism, according to the release.
“Clearpool introduces several new concepts to DeFi, including single borrower liquidity pools and a system of tokenized credit,” said Clearpool CEO Robert Alcorn, adding:
“These new concepts allow institutional borrowers to access uncollateralized liquidity directly from the DeFi ecosystem and provide lenders with sophisticated risk management and hedging solutions.”