Folkvang: Borrower Profile Interview
1. Company Background
Folkvang is a native crypto trading firm. With their proprietary technology, they trade on all major crypto markets around the clock. Since they began trading, they’ve grown the team from two people in Asia in 2018 to a global team of five core contributors.
In March 2020, we became more official and took on investment from SBF to seriously scale up our capital base and trading operations. We have been a part of global on-screen crypto flows ever since, trading billions of dollars every day on all the major coins and exchanges.
2. Trading Strategy
As a quantitative trading firm, they employ a variety of trading strategies, ranging anywhere from degen yield farming to low latency HFT arbitrage on the biggest markets. They are best known for the latter, where their market-neutral HFT strategies make money from market-making, arbitrage, funding, and basis.
On a weekly basis, they have had zero drawdowns since their start in March 2019.
3. Why are you looking to borrow capital now?
Their main HFT trading activities have no market sensitivity and limited price exposure. However, they are very capital intensive, and they need to have money ready for deployment on each and every venue. They will use the capital as collateral on exchanges to power their capital-hungry custom proprietary trading systems.
4. Why are you interested in borrowing from Clearpool’s protocol compared to other available options?
Leveraging Clearpool’s products, they can borrow with a very high degree of transparency as everything is recorded on chain. This means they’re always beefing up their credit history.
On top of that, by using Clearpool, they can more directly interact with our lenders. They can also point new potential lenders to their pool on Clearpool, which saves them a lot of hassle in onboarding and settling loans.
5. What size do you typically borrow and are seeking to borrow on Clearpool?
They typically work with a large number of lenders at any single time, and individual loans can be anywhere from $1m to $25m+. On Clearpool, they hope to operate a bigger pool, given that a single pool will consist of many lenders.
6. Why would the Clearpool community lend to Folkvang?
At Folkvang, they’ve been supporting the crypto ecosystem for a number of years. With their liquidity, they make it easier and cheaper for people to trade on every exchange (as well as DeFi platforms on many blockchains). Lending to them means they can do this on a bigger scale and further push the ecosystem.
So far, they have a strong track record with zero drawdowns dating back to early 2019. Their credit quality should be viewed at the highest tier as an established and hyper-successful trading shop in the digital asset landscape.
7. Any media you would like to share with our community?
About Folkvang
Folkvang is a quant trading firm and liquidity provider active in all leading crypto markets, trading all major currencies on all major exchanges with a 24/7 presence.
Performance-Driven, Technology-Propelled.
About Clearpool
Clearpool is a decentralized capital markets ecosystem where institutional borrowers can access unsecured liquidity and where liquidity providers can earn attractive risk-adjusted returns.
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