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Clearpool Teams Up with Cicada to Develop Structured PayFi Lending Opportunities
In a groundbreaking partnership, Clearpool has announced its collaboration with Cicada to develop structured PayFi lending opportunities. This unprecedented move is set to bridge the gap between decentralized finance (DeFi) liquidity and short-term working capital for fintech operators.
Through this innovative initiative, Clearpool aims to introduce PayFi Credit Pools that direct liquidity from eligible lenders into short-term working capital lines denominated in stablecoins. These facilities will target operators who must pre-fund payouts or float receivables while fiat clears, utilizing on-chain settlement data to inform risk and cadence.
The joint venture also sees the introduction of cpUSD, a permissionless yield-bearing asset designed to pass through returns from PayFi activity to retail investors within defined parameters. Clearpool emphasizes that professionally managed pools and standardized disclosures will help align incentives between borrowers and lenders, while preserving composability for DeFi users.
As part of this partnership, Cicada brings its institutional track record with over $850 million in underwritten loans and a remarkable 1.2% default rate to the table. This wealth of experience will be used to calibrate limits, covenants, monitoring, and disclosures for PayFi borrowers and lenders.
Clearpool aims to provide daily liquidity, clear waterfalls, and visibility into utilization for lenders, allowing them to capture real-world yield without direct operational exposure.
Source: crypto-economy.com
