Pascal Protocol: DeFi's Clearing Layer - What You Need to Know

DeFi has spent the last several years building high‑throughput trading venues, sophisticated yield primitives and on‑chain money markets. Yet one critical function remains largely absent: a neutral clearing layer that nets risk across positions and venues.

In traditional markets, clearing houses such as LCH and CME sit between counterparties, netting exposures, enforcing margin rules and mutualizing risk.

DeFi’s fragmentation and over‑collateralization show what happens without proper clearing infrastructure as exchanges silo the risk logic, overlock collateral and still suffer periodic blow‑ups. A potential $35 trillion opportunity in on‑chain derivatives and RWA markets are being entirely overlooked.

Pascal Protocol aims to be the clearinghouse for DeFi, providing neutral middleware that calculate margin using portfolio netting and VaR‑based models, enforce liquidations deterministically and allow exposures to be netted across platforms.

In this edition, we explore the Clearing opportunity, Pascal’s solution and the upcoming $PASC TGE:

https://alearesearch.substack.com/p/pascal-protocol-defis-clearing-layer