In TradFi, clearing is invisible but indispensable. In DeFi, it’s almost absent.

In traditional finance (TradFi), clearing is invisible but indispensable. Clearing houses stand between every buyer and seller, net exposures, enforce collateral rules, and prevent systemic blow-ups. Without clearing, markets don’t function. Clearing represents more than half the revenue at the main TradFi exchanges.

Yet in decentralized finance (DeFi), clearing is almost absent. Protocols either silo their risk management inside their own execution layer or rely on centralized intermediaries. The result? Massive over-collateralization, systemic fragility, and wasted capital.

Exchanges without clearing like to conflate it with “settlement” — obfuscating the need and confusing users. But the truth is simple: clearing is the structural missing layer in DeFi.

This is the problem Pascal Protocol exists to solve.

Clearing doesn’t mean matching. It doesn’t mean settlement. It doesn’t mean cash management. Clearing means confirming collateral and risk match — that the account is sound and counterparty risk is neutralized. Done well, it returns the majority of trading collateral back into an available state, encouraging more trading and healthier markets.

The Problem in DeFi

DeFi has grown massively, but its underlying risk architecture hasn’t. Current infrastructure shows three major flaws:

• Siloed risk models: each exchange (like GMX or dYdX) builds its own isolated clearing logic
• Capital inefficiency: protocols require 150–200% collateral, compared to 5–8% in TradFi
• Systemic revenue driver: frequent liquidations produce residuals that are the largest income stream, often points not basis points

TradFi solved these issues decades ago with clearing. DeFi hasn’t — until now.

Pascal’s Solution: Smart Clearing On-Chain

Pascal is the first modular, on-chain clearing protocol.

Instead of reinventing risk logic inside every venue, Pascal provides a shared settlement layer anyone can integrate with.

Key features include:

• Portfolio Margining: offsets across multiple positions and venues
• Value-at-Risk (VaR) Models: dynamic margin that measures real exposure
• Transparent Liquidations: enforced fully on-chain with predictable waterfalls of risk management
• Composability: usable by exchanges, DAOs, vaults, and structured products
• Extensibility: launch RWA platforms, trade delivery period matches between spot and derivatives

Clearing isn’t a “feature.” It’s the backbone that allows markets to scale. With Pascal, DeFi gains the efficiency of TradFi plus the transparency of blockchain.

Pascal doesn’t want to own matching. It wants to empower the next generation of exchanges — transparent, on-chain, and competitive with TradFi on product and safety, not just hype.

Proof in Action: Jetstream and Beyond

Pascal isn’t theory. It’s live.

• Jetstream, a next-gen futures DEX, clears every trade through Pascal — with thousands of transactions already running through the margin engine.
• Partnerships like Treehouse show Pascal’s modular design extends to structured products and yield curves.
• Scalability through Arbitrum Orbit migration brings low fees, dedicated blockspace, and institutional-grade performance.

Pascal isn’t another DEX. It’s the infrastructure powering DeFi’s next wave.

Why $PASC Matters

Infrastructure alone doesn’t capture value. The token does. The $PASC token aligns adoption with incentives:

• Jetstream Points: earned on top of staking, convertible to JETS tokens at Jetstream’s TGE
• Fee Distribution: 20% of protocol fees shared with PASC stakers in USDC
• Supply Sink: staking reduces circulating supply, supporting long-term stability

Owning $PASC means owning a share in the backbone layer of DeFi.

The TGE: Community Ownership of Clearing

In early September, Pascal launches its Token Generation Event (TGE).

• Venue: Uniswap IDO — permissionless, transparent, community-first
• Initial unlock: ~13% of supply, with ~4% real float; vesting minimizes sell pressure
• Valuation (last round): $40M FDV, $4 token price
• Liquidity strategy: Uniswap v2 pool at launch, migrating to v3 post-launch

For the community, the TGE isn’t just another sale. It’s the moment clearing becomes a public good — and $PASC the way to own it.

Conclusion

Markets collapse without clearing. TradFi built its stability on it. DeFi ignored it — and paid the price. CME is 250x bigger than Hyperliquid every day for a reason.

Pascal Protocol delivers the missing clearing layer: portfolio margining, exposure netting, transparent on-chain clearing. It’s already powering Jetstream, already proving real adoption, and now opening to the wider community.

Pascal doesn’t need to be the exchange for every asset. It’s building the clearinghouse for all of DeFi.

The $PASC TGE in September is more than a milestone. It’s the start of community ownership in DeFi’s missing infrastructure.