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BitThumb Launching DeFi Platform as a Polkadot Parachain

The international spin-off of the cryptocurrency exchange based in Korea, Bithumb Global has announced the launch of Clover. This is a blockchain platform that has been developed for decentralized finance (DeFi), a space that’s growing rather rapidly, and will be powered with Polkadot (DOT) technology. The company revealed that Clover would serve as an open platform for DeFi apps and it would also leverage cross-chain capabilities, which means it would connect centralized exchange to the decentralized finance space. The custom blockchain framework by Polkadot called Substrate has been sued for developing Clover. Even though independent blockchains can be launched on Substrate, Bithumb disclosed that they are planning to launch Clover as a parachain directly. 

This term is used to refer to Polkadot shards. A native token will also be featured on Clover, which is called CLV. It is a governance and utility token combined. The token will be used for conducting transactions on different marketplaces, participating in governance, earning dividends via platform usage, and staking and consensus. Changes to the platform can be proposed by the community and they can also vote on it, with one token being used for one vote. The new platform is part of an ongoing trend in the crypto space where centralized exchanges are introducing their own blockchains for the decentralized finance (DeFi) industry. 

Changpeng Zhao, the CEO of Binance, has come up with the term ‘CeDeFi’ to refer to these efforts. The CEO at Clover and the former chief marketing officer at Bithumb Global, Chris Li said that the exchange had a rather unique vision for their platform. He said that Bithumb would act as Clover’s major supporter and investor and they were also planning on using it as a custodian solution for making cross-chain transactions before decentralized solutions by Polkadot become available. However, he did say that Bithumb will not have the same kind of influence that Binance tends to have on its chains.

This is due to the fact that the company wishes to appeal to outside partners, which also includes other exchanges. Therefore, they have not used the term ‘Bithumb Chain’ for it and haven’t used the existing exchange token. Li revealed that some in-house DApps would also be included in the chain, such as a decentralized exchange, lending protocols, and different types of wallets. Nonetheless, the company will provide support and also encourage external teams to build on it. 

According to Li, they believe that the next step for decentralized finance is to transfer value and assets across various platforms. He noted that Bithumb will continue its efforts to promote Polkadot and DeFi ecosystems. In return, the company is expecting to advance its own ecosystem and also acquire more users. Since Clover will be launched as a parachain, the date of release is dependent on when parachain slot auctions are enabled by Polkadot. But, Li said that they were planning to integrate with it in the first quarter of 2021. The support provided by Polkadot is crucial for their plans of developing a custom blockchain.

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