Clearpool published a blog post to announce that it has a new single borrower pool – Parallel. It will be available soon on the Clearpool Polygon Market. The pool is being launched by Parallel Capital, a high-frequency trading firm.
Parallel Capital was founded in 2018 as an algorithmic and high-frequency proprietary trading firm. Parallel Capital provides liquidity within the cryptocurrency ecosystem with the availability of 24/7/365.
It is backed by a team of veterans from Wall Street and Silicon Valley, bringing the world of finance and technology together.
The platform outperforms other major players in the market by trading tens of billions of US Dollars every month, and the figure goes as high as $100 million.
Functions of the firm are based on proprietary market-making trading strategies. By getting on board as a single borrower, the firm is looking to prove that there are still those who are responsible, profitable, and sustainable yields to be had with good actors who practice risk management.
The entry of players like Celsius, Arrows Capital, and other large institutions has dried up the lending market. Amid the cloud of many players, the firm looks to promote ideals and benefits of decentralization while trading profitably to help stabilize the image of the cryptocurrency industry.
Decentralization is crucial considering the direction the crypto industry is headed towards. Establishing a win-win relationship is a factor that can prove to be long-lasting in the industry. Parallel Capital has, therefore, chosen to partner with Clearpool and borrow from the community.
Another pointer is that it seeks to diversify the lender risk while tapping into the strong community of Clearpool.
Under the integration, Parallel Capital will obtain more inventory to make markets and share the yields from fellow cryptocurrency traders. This will further help to benefit the ecosystem and democratize access to high-performing but low-risk opportunities.
Parallel usually borrows $2-5 million per loan. However, borrowing from Clearpool would depend on the type of response that the community gives.
Parallel Capital has delivered risk-adjusted returns, and the team can quote the best during the most volatile times. While others fear losing funds, Parallel Capital makes the most during these periods by maintaining a strict margin requirement and large safety buffers.
The firm’s support for the cryptocurrency community and long-term belief make it an ideal candidate for borrowing from the community.
The introduction of Parallel Capital as a new borrower is being celebrated by providing 170,000 MATIC tokens.
Token will be available to be farmed by early LPs on the Clearpool Polygon Market. All the lenders (LPs) to liquidity pools will receive additional reward points for 60 days starting from July 28, 2022.
The borrowing rating of Parallel Capital is ‘AA’ with a capacity of $44.5 million. Clearpool integrated the privacy-preserving technology of X-Margin to measure and publish the creditworthiness of Parallel Capital.