Motivated by a recent conjecture by Hernandez and Leclerc, we embed a Fomin-Zelevinsky cluster algebra into the Grothendieck ring $\mathbf{R}$ of the category of representations of quantum loop algebras ${\mathbf{U}}_{q}({\mathbf{L}}\mathfrak{g})$ of a symmetric Kac-Moody Lie algebra, studied earlier by the author via perverse sheaves on graded quiver varieties. Graded quiver varieties controlling the image can be identified with varieties which Lusztig used to define the canonical base. The cluster monomials form a subset of the base given by the classes of simple modules in $\mathbf{R}$ , or Lusztig’s dual canonical base. The conjectures that cluster monomials are positive and linearly independent (and probably many other conjectures) of Fomin and Zelevinsky follow as consequences when there is a seed with a bipartite quiver. Simple modules corresponding to cluster monomials factorize into tensor products of “prime” simple ones according to the cluster expansion.