Bithumb ready to launch a DeFi platform as Polkadot’s Parachain

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The exchange ensures that this will not be just another case of “CeDeFi”.

Bithumb Global, the international spin-off of the Korean crypto currency exchange, has announced the imminent launch of Clover, a blockchain platform Bitcoin Fast Profit designed for decentralised finance and based on Polkadot (DOT) technology.

The company says Clover will be an open platform for DeFi applications, leveraging cross-chain capabilities and linking decentralised finance to centralised exchange.

Clover was developed on Substrate, Polkadot’s custom blockchain framework. Although Substrate enables the launch of independent blockchain, Bithumb plans to launch Clover directly as a parachain, the term used to describe Polkadot’s shards.

Clover will have a native token, called CLV, which will act as both a utility token and governance token. It will be used for staking and consensus, operations on various marketplaces, accumulation of dividends from the use of the platform, and participation in its governance. The community may propose and vote on changes to the platform, with a token equivalent to one vote.

Clover is part of a general trend of centralized exchanges launching its own blockchain for DeFi. To describe these initiatives, Binance CEO Changpeng Zhao coined the term “CeDeFi.

Chris Li, CEO of Clover and former chief marketing officer of Bithumb Global, explained to Cointelegraph that the exchange has a different vision for the platform. “Bithumb will be a major supporter of Clover, and we intend to use Bithumb as a custody solution for cross-chain transactions before Polkadot’s decentralized solutions become available,” he said.

However, he stressed that Bithumb “will not have the same influence over its chains as Binance does” as the company intends to attract external partners, including other exchanges.

The chain will include some internal dApps, Li explained, including a decentralized exchange, different types of wallets, and loan protocols. However, the company will encourage and support external teams who choose to develop their products.

As Li explained, the company believes that the next step for DeFi is “transferring assets and value across different platforms,” and that Bithumb will help drive forward the ecosystems of Polkadot and DeFi in general. In return, the company plans to promote its ecosystem and “acquire new types of users.

Clover will be launched as a parachain, so the publication date depends heavily on Polkadot activating the auctions for parachain positions. “We expect integration into the Polkadot network to take place in Q1 2021,” added Li. Polkadot’s support has been crucial to the company’s plans for a customized blockchain. In conclusion, Li explained that “Bithumb has previously tried to build chains but to no avail.