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Clover: An All-Round DeFi Service Platform? What are its advantages among DeFi projects?
Clover is a parachain based on Polkadot that offers all in one decentralized finance platform backed by Bithumb Global. It is committed to providing an easy-to-use infrastructure for Blockchain and creating an EVM-compatible framework for substrate-based applications.
Most of the DeFi projects are based on Ethereum Network, but it comes with a skyrocketing gas fee and low network efficiency. Even after the complete upgrade, Ethereum 2.0 may not wholly overcome the high gas fee problems. Keeping this in mind, Clover finds the solutions in Polkadot, i.e., Clover is built on the Polkadot Network. Here, Polkadot can process many transactions parallel in several chains, which improves the scalability and creates the conditions to increase future growth.
Clover aims to join as a parachain for Polkadot, committed to becoming a DeFi service provider on the Network. It provides a series of products and services to meet the needs of different users. It will also put together various projects into an integrated service platform. Clover offers additional features by its native token CLV, which participates in consensus to earn rewards, stakes to run nodes, and participation in governance activities.
The consensus mechanism of Clover is NPoS (Nominated proof-of-Stake), where the two main actors involved are Validators and Nominators. Validators provide the infrastructure which is responsible for the maintenance. Validators produce new blocks and validate the parachain blocks. Nominators are the holders contributing to the network security by nominating up to 16 validators with their staked tokens.
Clover aims to provide modular DeFi protocols (such as decentralized Lending Protocol, Governance Protocol, Synthetic Asset protocol, Token Dividend Protocol, Staking Liquidity Protocol, and decentralized Trading Protocol) and application tools as a service provider on Polkadot. It, in turn, reduces the efforts required for protocol development.
What are the advantages of Clover?
· It offers quick access, which doesn't require verifying the account.
· It doesn’t involve any centralized governance entity making it a trustless system.
· It offers faster and cheaper transactions by the use of Polkadot Network instead of Ethereum.
· It doesn’t store any personal information.
· It is a secure platform where the users are always in charge of their funds.
· It is an efficient system that offers cross-chain communication.
It also can convert DeFi users into the users of its upper-layer applications, who will be able to inject more market values. It aims to develop a developer-centric community. The platform will encourage the developers to innovate DeFi protocols by providing rewards.