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Meet Clover, The Next Generation Of DeFi

    • 88 posts
    April 21, 2021 9:39 AM +0430

    Meet Clover, The Next Generation Of DeFi On PolkaDot And Kusama

    DeFi or Decentralized Finance has been one of the biggest catalysts of the recent crypto bull market. From stablecoins, lending, trading, financial derivatives, and insurance protocols, DeFi projects have created new business models to innovate on the financial system. The total market value of current DeFi projects has grown exponentially from nearly US$700 million in early 2020 to more than $60 billion USD today.

    The traditional financial system, however, remains hesitant to adopt many of these projects because the blockchains they operate on are either too slow, too expensive, or too centralized. Ethereum, for example, has an average transaction fee of $15 to $50 USD, and can go up to $300 during busy periods. This makes running daily financial applications impractical. There are centralized alternatives, but centralization poses challenges in building trusted financial instruments. pg

    A new set of offerings is set to hit the market this month to build DeFi that is both decentralized and affordable, based on the Polkadot network, as well as its ‘sister’ test network, Kusama.

    Polkadot, created by Ethereum Co-Founder Gavin Wood, aims to solve the problem of high gas fees by providing a heterogeneous multi-chain interchange and translation architecture, enabling customised side-chains to connect with public blockchains. As a sharded multichain network, Polkadot is able to process many transactions on several chains in parallel, eliminating the bottlenecks that occurred on legacy networks that processed transactions one-by-one. The PolkaDot ecosystem includes a range of DeFi applications, allowing all existing layer one solutions and applications to communicate with each other.

    Of the upcoming PolkaDot network projects, there are three infrastructure projects that have received the greatest investor attention: Acala Network (a DeFi Hub on PolkaDot), MoonBeam (a Smart Contract platform on PolkaDot) and Clover (an Operating System parachain on PolkaDot).

    As a non-technical participant in the blockchain ecosystem, I wanted to understand the impact of this technology further and had the privilege of sitting down with the team at Clover. The development team is led by Toronto-based computer scientists Viven Kirby and Burak Keceli, while the company’s operations are led by Norelle NG, an up and coming female powerhouse, who was previously a partner at Bithumb Holdings and Head of Client Relations at Amber Group. Clover is backed by some of the industry’s top investors including Polychain Capital, Alameda Research, OKex Block Dream Fund, Hypersphere Ventures, Moonwhale Ventures, Kyros Ventures and will be available to the public through popular retail token platform CoinList.

    Clover Finance is looking to create the lightest and fastest DeFi cross-chain infrastructure on Polkadot to tackle the challenges of speed and cost in the current DeFi ecosystem. In looking at alternatives, Clover chose Polkadot, because as a sharded multichain network, Polkadot is able to process many transactions on several chains in parallel, eliminating the bottlenecks that occurred on legacy networks that processed transactions one-by-one. To the everyday user, these improvements will be felt in speed of even the most complex transactions between multiple applications.