Bithumb Global Along with Clover Plan to Disrupt DeFi?

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Bithumb Global Along with Clover Plan to Disrupt DeFi?
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In the last year, decentralized finance, or DeFi, has rapidly grown to become one of the most promising use cases for blockchain technology and has benefitted from an explosion in innovation, as more projects and developers double down on their DeFi efforts.

Until recently, these efforts were primarily concentrated on the Ethereum blockchain — since it is the most widely used smart contract platform and has dozens of DeFi apps currently operating. 

But over the last few months, it has proven itself to be incapable of supporting large-scale decentralized applications (dApps) without assistance from other technologies — leading developers to look for alternatives when building their ever-more ambitious DeFi applications. 

Polkadot, a recently launched platform designed to make launching novel, scalable, and interoperable blockchain solutions as simple as possible, has become the go-to option for developers who were constrained by Ethereum’s current limitations. 

Out of these Polkadot-based developments, Clover stands apart as perhaps the most ambitious, as it looking to provide the framework that other projects can use for building their cross-chain compatible DeFi apps. 

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Building Polkadot’s DeFi Foundations

Clover is a new blockchain initiative that is backed by the international exchange behemoth Bithumb Global.

As a DeFi service provider and portal built on the Polkadot network, Clover is designed to provide crucial tools and resources to projects looking to launch their own blockchain solutions — while benefitting from the unique properties of the Polkadot platform, including interoperability, low fees, and extreme scalability. 

In a bid to provide the infrastructure developers can use to easily launch their own cross-chain DeFi applications, ranging from decentralized exchanges, yield farms, vaults, Clover is compatible with the Ethereum virtual machine (EVM), ensuring Ethereum developers can quickly port their dApps to Polkadot. 

Clover will be launched as one of the first Polkadot parachains, and is scheduled to go live as soon as Q1 2021 — or as soon as parachains are launched on the Polkadot mainnet. Being based on Substrate (the same architecture as Polkadot), Clover benefits from a number of technical solutions out of the box, including peer-to-peer networking, consensus mechanisms, governance functionality, EVM implementation.

This enables a rapid development schedule, ensuring Clover will be one of the first parachains to launch. 

Clover’s DeFi Toolkit and Incentive Program

Clover’s blockchain operating system incorporates a number of layers, which give developers the tools and features they need to launch truly next-generation decentralized applications. 

These layers are:

  • Storage layer: For the secure distributed storage of dApp data using technology like the Interplanetary file transfer protocol (IPFS). 
  • Smart contract layer: For the simple cross-chain deployment of smart contracts that benefit from its Web3-compatible API.
  • DeFi protocol layer: Allowing developers to build their own DeFi solutions using a drag-and-drop smart contract compiler.
  • External app (eApp) layer: Enabling the future of decentralized applications — no machines, domain names, or network bandwidth needed.

Taken together, Clover’s layers enable a diverse array of DeFi applications, which benefit from drastically improved performance and gasless transactions — overcoming one of the biggest barriers to entry for dApps on other blockchains — high fees. With Clover, transaction fees can be deducted directly from the asset transacted for the first time ever. 

The platform incorporates a native token, known simply as Clover (CLV), which can be used for staking and governance, and holders will be entitled to rewards that are tied to the platform’s usage and growth.  

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Image credits: Clover

With Clover, developers are also incentivized through the Developer Incentive Program (DIP) to contribute to the development of further modules and smart contracts — providing additional features for developers and making building power dApps even easier over time. 

Though the platform is backed by Bithumb Global, the exchange giant intends to take a backseat approach to the endeavor, since Clover is intended to be an agnostic platform that will work with all types of partners — including other cryptocurrency exchange platforms. 

However, according to a recent statement made by Clover CEO and former Bithumb Global CMO Chris Li, Clover will “use Bithumb as a custodian solution for cross-chain transactions before Polkadot decentralized solutions become available.”