Bithumb Global, an international subsidiary of the Korean cryptocurrency exchange, has announced the upcoming launch of Clover, a blockchain platform focused on decentralized financing and backed by Polkadot (DOT) technology.
The company says Clover will become an open platform for DeFi apps that capitalize on the power of various chains and link decentralized finance to a centralized financial exchange.
Clover is built on Substrate, Polkadot’s custom blockchain framework. While the substrate allows standalone blockchains to run, Bithumb plans to launch Clover directly as a parachute, a term used to describe Polkadot’s inserts.
Clover will have its token named CLV. The token is a tool and a control token. It will be used for effort and consensus, transactions in different markets, receiving profits from using the platform and participating in governance. The community will be able to suggest and vote on platform changes, with one symbol corresponding to one vote.
The platform is part of the general trend of central exchanges launching their blockchain for DeFi, and Binance CEO Changpeng Zhao coined the term “CeDeFi” to describe the effort.
Chris Lee, Clover CEO and former president of Bithumb Global, told Cointelegraph that the exchange has a different view of the platform. “Bithumb will be the biggest supporter of Clover and we plan to use Bithumb as a repository for cross-chain transactions before the decentralized solutions for Bulcadot become available,” he said.
However, he noted that Bithumb “will not have as much influence as Binance [on its networks]” as the company wants to attract outside partners, including other exchanges.
Lee said the chain will include several internal DApps, including decentralized exchanges and many types of wallets and lending protocols. However, the company will encourage and support the external teams that use it.
Lee said the company believes DeFi’s next step will be “to move assets and value across platforms,” and that Bithumb will help advance the shared ecosystems of DeFi and Polkadot. In return, the company expects to expand its own ecosystem and “attract new types of users”.
The Clover will be launched as an umbrella, which means the release date is highly dependent on whether Polkadot will allow parachute auctions. “But we are looking to integrate into the Polkadot network in the first quarter of 2021,” Lee said. Polkadot’s support was crucial to the company’s plans to create its own blockchain, as “Bithumb had tried to create chains before, but there were no results,” Lee added.