Clearpool Dynamic is a permissionless lending market where anyone can provide liquidity to whitelisted institutional borrowers and earn risk-adjusted returns. Liquidity can be withdrawn at any time subject to pool availability, with no lock-up periods.
When you deposit into a Dynamic Pool, you receive cpTokens. These are pool-specific LP tokens representing your deposited liquidity with accrued interest. cpTokens can be redeemed at any time, subject to pool liquidity.
Interest rates are determined by a utilization-based curve. Rates increase as pool utilization (borrowers withdraw funds) rises and decrease when utilization falls (borrowers repay funds). Parameters for this curve are set through Clearpool governance, based on input from CPOOL-staking Oracles.
Borrowers in Dynamic Pools are evaluated by Credora, a third-party provider using privacy-preserving zero-knowledge technology to produce real-time credit assessments. These ratings are independent from Clearpool and are intended to help lenders assess potential risk.
At 95% utilization, borrower withdrawals pause until utilization drops below the threshold.
At 99% utilization, all withdrawals by borrowers and lenders pause temporarily.
If utilization remains above 95% for 5 consecutive days (Grace Period), the pool enters default status. An auction process is triggered to recover value, with proceeds distributed to lenders.
A portion of interest earned in each pool is allocated to an insurance fund. This fund is used to provide partial recovery to lenders in the event of borrower default. The current approved parameter for insurance is: 5%
Official Dynamic Pools : Link
For more technical detail on interest rates, please see the IRM Technical Papers below.
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