Term pools are an addition to Clearpool’s existing Permissionless product. Term pools enable borrowers to attract term liquidity by creating sub-pools with fixed maturity dates and enhanced yields. Lenders lock their cpTokens within these term pools to earn the additional yield.
Liquidity within term pools will be locked until the maturity date of the pool. Separate term pool tokens, labeled as tpTokens, will be issued to LP’s and will eventually be tradeable on a dedicated DEX providing an ongoing source of secondary liquidity. Term pools will improve capital and pricing efficiency for borrowers while providing more yield opportunities for lenders.