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Tech Deep Dives

What Is Clover Finance?

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Published on:
July 22, 2021

CoinMarketCap takes a deep dive into an intuitive blockchain infrastructure that seeks to reduce efforts and costs for developers.

What Is Clover Finance?

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The blockchain technology has presented us with an astounding number of new projects and widespread innovation. It makes cryptocurrencies and decentralization possible, but lately, many developers have been focusing on bringing all of these decentralized networks together with cross-chain compatibility. If developers are working on a DeFi application on Ethereum’s platform, they may want the opportunity to expand that to the Polkadot ecosystem as well. The same applies while bringing DeFi solutions to Bitcoin’s blockchain. Clover is a way of bridging this gap for greater compatibility when building and operating across blockchains. 


Clover Finance was founded in 2020 as a Substrate-based Polkadot parachain. The platform seeks to provide an intuitive blockchain infrastructure to reduce efforts and costs for developers. Clover bills itself as a foundation layer for cross-chain compatibility. Its cofounders, Viven Kirby, Norelle Ng, and Burak Keçeli, seek to bring more decentralization to the cryptoverse, as a whole. 


How Does Clover Work?

Clover describes itself as a blockchain operating system. It contains a storage layer, smart contract layer, Defi protocol layer, and eApp layer that work in unison to accomplish the goal of blockchain interoperability. Here are the layers in more detail: 


  • Storage layer: The storage protocol layer enables the distributed storage of dApp data. 


  • Smart contracts layer: This layer supports the cross-chain deployment of smart contracts with a Web 3.0-compatible API. Existing web 3.0 DApps can be migrated to Clover without any changes.


  • Defi protocol layer: This layer supports various basic DeFi protocols, such as swapping, lending, insurance, and others. Developers will also be able to build their additional DeFi protocols. 


  • eApp layer: This layer supports the evolution from a DApp to an eApp (External Application). Developers can build and deploy their own eApps easily on Clover, with no need for other virtual machines or network bandwidth.


What Makes Clover Unique?

Clover provides the groundwork to create DApps that work across blockchains. Previously, DApps were developed and used within the Ethereum network. The Clover system will make the use of DeFi easier for developers and everyday users. Developers are seeking to enable mainstream crypto and DeFi adoption wherever possible to open the floodgates to a whole new audience consisting of billions of people who are not using the new decentralized economy. 


Clover Finance was launched on Coinbase Pro in the month of July 2021. Some benefits of Clover that have been communicated by the platform include: 


  • Ethereum Virtual Machine Compatible: Its compatibility with DeFi’s originator and developer hub, Ethereum, is a huge advantage. 


  • No Gas Fees For End Users: Removing gas fees for end-users and redistributing them elsewhere enhances adoption and simplifies DeFi for new users. 


  • Streamlined Cross-Chain Experience: With the Clover app and wallet, users can send, receive, wrap, and unwrap cryptocurrencies across chains. 


What Is the CLV token? 

CLV is truly usable cross-chain as its unique two-way bridge allows for EVM-based Clover addresses and Polkadot-based Clover addresses to be bundled together. This is an incredibly useful development especially as the Clover app and wallet can connect and aggregate information from the user’s accounts on multiple DApps. This makes it easier for DeFi users to keep track of their multiple wallets, accounts, and holdings. 


The CLV token is a multi-use asset in the Clover Finance ecosystem. It is used as the governance token to enable community voting on system upgrades. CLV can also be used to pay for transaction fees on the platform. Here are some other use cases for the token on the network: 


  • Validation: Users can stake their CLV to validate transactions on the network’s validator infrastructure.


  • Treasury Access: Developers can apply to have their projects funded from the treasury.


  • Nomination: CLV holders can nominate their own node validators using a single-click deployment.


  • Deployment: Use CLV to deploy your smart contracts and DApps on Clover.


Final Thoughts on Clover Finance 

Clover Finance has a growing number of strategic partners and backers, including like-minded projects like The Graph, Chainlink, Polygon, Bounce, Chainswap, and Crust. Many of these projects are also seeking to provide a more holistic blockchain experience for users that connects previously disparate elements. 


Clover is a promising new blockchain layer that allows users to interact and transact with major networks, simultaneously. In combination with other new protocols and platforms, Clover can help to solve what may surmise is the major roadblock to mass adoption of DeFi: blockchain interoperability. 


This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.

Author(s)

Kevin Dwyer

I'm a technical writer and journalist covering cryptocurrency and tech. I believe blockchain can build a better world - I'm here to report on how we get there.

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