DeFi Lender Clearpool Launches on Polygon zkEVM, Bringing Full EVM Compatibility, Low Fees, and Better Security

Key highlights:

• Decentralized lending protocol Clearpool has launched on Polygon’s zkEVM scaling solution, expanding beyond Ethereum and Polygon PoS.
• Integrating with zkEVM brings key benefits like full EVM compatibility, lower gas fees due to zero-knowledge proofs, and enhanced security.

The decentralized finance (DeFi) lending marketplace Clearpool has expanded to Polygon zkEVM, representing the protocol’s third blockchain integration after Ethereum mainnet and Polygon PoS. This latest expansion brings the benefits of zkEVM technology- high-speed transactions, lower fees, and improved security- to Clearpool users.

An overview of Clearpool and Polygon zkEVM

Founded in 2021, Clearpool operates a decentralized credit marketplace that allows institutions to access digital asset loans from vetted counterparties. The protocol has facilitated over $400 million in loans since its mainnet launch in March 2022. 

Polygon zkEVM provides the same EVM compatibility as Ethereum, meaning developers can use the same tools and applications with minimal friction. Transactions are batched off-chain and submitted to Ethereum in a single transaction using zero-knowledge proofs to verify validity without revealing data. This results in lower fees and higher throughput.

Clearpool is keen to leverage these advantages as part of its goal to be a multichain protocol. As Clearpool CEO Robert Alcorn stated, “Since its inception, Clearpool was designed to be a multichain protocol that is cost-effective, seamless, and scalable.”

Integrating with Polygon zkEVM is a key step in realizing this vision. It adds another building block to Clearpool’s expanding DeFi landscape.

Why integrate Polygon zkEVM?

Integrating Polygon’s zkEVM brings several key benefits to Clearpool users:

Full EVM compatibility

The zkEVM allows complete EVM compatibility, enabling a seamless experience for developers. No code changes are required for apps to leverage zkEVM.

Lower gas fees

With zkEVM’s zero-knowledge proofs batching transactions, users enjoy significantly lower gas fees than transacting directly on the Ethereum mainnet. This supports wider adoption among Clearpool’s lenders.

Enhanced security

zkEVM’s use of zero-knowledge proofs also enhances security versus standard rollups. Transactions are cryptographically verified off-chain before being submitted to the mainnet.

Early adoption and expanded DeFi offerings

Clearpool’s first permissionless lending pools on zkEVM Layer 2 have been opened by market makers Fasanara and Portofino. These two have been Clearpool borrowers since March 2023.

The integration also sees expanded DeFi offerings through collaboration with Idle Finance. Idle’s automated yield generation protocols are being used to build products on top of the zkEVM pools, segmenting risks and returns to serve a wider group of users.

Who is involved?

Clearpool has launched its first permissionless lending pools on Polygon zkEVM, opened by existing protocol partners Fasanara and Portofino. These pioneers can now take advantage of faster transactions and lower fees.

The protocol is also collaborating with the DeFi automation platform Idle Finance to launch innovative “Idle Yield Tranches” on top of the lending pools. This allows liquidity providers to choose between senior and junior tranches based on their risk appetite.

As Idle Finance explained, “Junior tranches provide boosted returns in exchange for the coverage offered to the Senior tranches, coming with lower APR and the protection of funds.”

What does this mean for Clearpool?

Clearpool originated over $400 million of loans in its first year across Ethereum and Polygon PoS. This expansion to a third blockchain solution cements its position as a leading DeFi protocol.

It also further diversifies the options for borrowers, allowing increased efficiency and capital utilization across Clearpool’s growing ecosystem.

As a multichain future fast approach, it’s encouraging to see protocols like Clearpool push the boundaries of interoperability and accessibility for all users. While risks always exist with new technologies, integrations like this demonstrate the potential for Ethereum applications to scale quickly without compromising security or compatibility.

With the zkEVM launch providing another building block, Clearpool seems poised to continue growing its decentralized lending ecosystem across multiple chains.

At the time of writing, Polygon is priced at $0.703 and has a market cap of $6.542 billion. MATIC is down 1.3% in the last 24 hours. Those interested in where the price of Polygon may go in the future can take a look at the MATIC price forecast.