Multiple crypto investments firms drained almost the max amount of available credit from their credit pools on lending protocol Clearpool, receiving a “warning” label. They faced higher interest rates on their loans. sndr_krisztian reports
Clearpool is a prominent uncollateralized lending protocol, where crypto trading firms often open credit lines and take out loans for their trading operations. Borrowers are not required to pledge assets in exchange, and the loans are secured by their reputation and alleged good financial standing.
Taking out the maximum amount of debt from these DeFi protocols is the real-life equivalent of maxing out a credit card, and might be a sign of broader financial distress on the market. The trading firm took out two loans, a total of $5.5 million, from Apollo Capital and Compound Capital Management using Clearpool’s Permissioned Pool, according toIt also borrowed $7.3 million from a TrueFi lending pool, which is due to mature Dec. 20, perLending pools on Maple Finance do not presently have active loans to Alameda, although Alameda had a lending pool that originated $288 million in loans until the spring of 2022.
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