In the world of digital assets, real world assets on-chain private credit brings the process of lending and borrowing against real-world assets onto a blockchain.
Maple Finance Nearly Imploded, but Sid Powell Wants to Bring Back Its Billion Dollar-Plus Glory
Last year’s crypto crash wiped out Maple Finance’s TVL as borrowers crumbled and lenders fled. In an interview with CoinDesk, the protocol’s co-founder and CEO lays out his plan for growth in an era of heightened risk management.
Maple Finance Eyes Asian Expansion With $5M Investment, Returns to Solana
The protocol’s focus on growth in Asia Pacific showcases the region’s increasing importance in the crypto industry.
Maple Finance secures SEC exemption for on-chain Treasury pools
Launched in April, the USDC pools were previously accessible only to non-U.S. accredited investors.
Maple Finance’s Tokenized Treasuries Available to U.S. Investors After Securities Exemption
The platform’s cash management facility has grown to $22 million in assets under management since opened in April.
Maple Finance announces direct lending to fill the void left by BlockFi, Celsius
The lending platform’s team will begin offering loans directly to some borrowers instead of relying solely on pool delegates to provide capital.
Maple Finance Expands to Direct Lending Targeting Web3 Firms
The firm aspires to fill the gap in crypto lending left by the implosion of centralized lenders such as BlockFi and Genesis.
CeFi Exchanges Helped Mass Crypto Adoption. DeFi Will Further It
Centralized exchanges will continue to serve as a first step into crypto but decentralized exchanges will further the future of financial systems, panelists say at Consensus.
Crypto Lender Maple Finance Opens U.S. Treasury Bill Pool for Cash Management
Maple’s new lending pool offers accredited investors, crypto firms and DAO treasuries a way to earn yield on their idle stablecoin holdings by investing in one-month U.S. Treasury bills.
Maple Finance launches pool for US Treasury yields
The so-called on-chain management protocol gives non-U.S. accredited investors access to one-month U.S. Treasury yields.
Lending Platform Maple Prepares New U.S. Treasury Pool; MPL Token Rises 23%
Maple’s new pool will allow accredited investors, corporate treasuries based outside of the U.S. to invest in U.S. treasury bonds on-chain, CEO Sid Powell said in a community call.
M11 Credit Resumes Crypto Lending on Maple Finance After FTX-Spurred Pause
The firm introduced an upgraded credit underwriting process and appointed a new head of credit. The developments came after M11 Credit suffered $36 million of loan defaults on lending protocol Maple Finance following FTX’s November collapse.
Crypto Trading Firm Auros Global Restructures $18M in Debt on Maple Finance
Auros Global has missed its payments on decentralized finance loans since November, citing funds frozen on the collapsed crypto exchange FTX.
Maple Finance 2.0 overhaul aimed at speeding up the defaulting process
The overhaul of the protocol, dubbed “Maple 2.0” comes only weeks after the platform saw two major defaults on the back of FTX’s collapse.
Maple Finance Debt Indicates Crypto Lending Risks With No Collateral
The emergence of Maple Finance brought a different approach to the entire process. This bold DeFi lending protocol requires no deposit of extra crypto tokens as collateral for borrowing.
In the decentralized finance (DeFi) space, cryptocurrency lending came as a means that allows investors access to their preferred tokens. However, they must deposit other crypto coins as collateral before borrowing the given assets. This will help curtail risks and losses for the DeFi lending platform.
Instead, it all lies in the hand of the lending pools to decide on granting the crypto loans or not. They would have to evaluate the borrower’s ability to repay based on his creditworthiness.
Maple Finance Suffers Bad Debts Due To Risks of Uncollateralized Loans
However, the prevailing crisis in the crypto market has given a massive blow to Maple in terms of stress tests since its launch in 2021. The protocol has witnessed a cumulative $36 million of defaulted loans and $18 million distressed in the past fortnight.
Maple’s bad debts represent about 66% of the total outstanding in its four active lending pools. Also, most of the vast borrowers have revealed losses due to their investments in the collapsed FTX exchange.
The outplaying events are creating negative waves for Maple. Already, its native token, MPL, has plummeted to an all-time low as it lost 50% of its value. Most participants and analysts are trying to highlight the wrong footing with the DeFi lending platform.
They intend to x-ray the rules and operations of the protocol for a possible amendment that could sustain the project again.
The focus is on the risks associated with uncollateralized crypto lending. Also, a combination of fraudulent decisions and poor protocol design heightened the project’s condition.
Shortfalls For Maple Lending Procedures
Maple faces a severe crisis with its crypto credit formalities. The protocol grew its lending book to $900 million within a year. Its popularity spiked among market makers that seek liquidity for borrowing and crypto trading companies. However, its range of depositors comes from institutional and average retail investors that want huge yields.
We would like to provide an update regarding Auros, who today missed the principal payment on a loan of 2400 wETH which triggered a 5-day grace period as per the smart contracts.
1/5
— M11 Credit (@M11Credit) November 30, 2022
But the collapse of the Terra ecosystem and FTX exchange brought massive losses to Maple. According to Token Terminal data, the protocol had a drop of $82 million in its outstanding loans.
Two of the protocol’s former credit managers, Celsius Network and Alameda Research (FTX’s sister trading firm), are already bankrupt. In addition, they are facing several allegations regarding their unprofessional business approaches and practices.
Also, the third credit pool manager, Orthogonal Trading, was kicked out of Maple Finance. The firm was accused of misrepresenting its financial records to conceal losses from the FTX fiasco.
Crypto trading firm Auros Global misses DeFi payment due to FTX contagion
Auros is an algorithmic trading and market-making firm that provides liquidity for exchanges and token projects.
Maple Finance CEO: Separating risk from lending saved DeFi from market crash
DeFi crypto lending has operated as intended through the crypto winter because transparency kept it in line and business activities were siloed, according to Maple Finance’s Sid Powell.
Maple Finance launches $300M lending pool for Bitcoin mining firms
The institutional lending platform has facilitated $1.8 billion worth of digital currency loans since May 2021.
Finance Redefined: 1Password partners with Phantom, and Stark deploys nine DApps, Feb. 18–25
1Password joined forces with Phantom on a security endeavor, StarkNet rolled out its first set of DApps, and Celcius deployed an institutional Wrapped Ether pool on Maple Finance — all coming to you in this week’s Finance Redefined.
Maple Finance partners with Celsius to launch wETH lending pool
The capital pool promises to enable greater access to finance for traditional corporations and institutions seeking to capitalize on emerging opportunities within the DeFi space.