Crypto lender Maple Finance joins list of platforms facing liquidity issues
Maple Finance joined the growing list of crypto lending platforms facing liquidity challenges after announcing on June 21 that the pool may not have enough cash.
DeFi protocol for institutional investors update “The lender has to wait for the borrower to repay,” he said.
Maple Finance said current market conditions are increasing demand for liquidity between lenders and borrowers. He added that this demand could increase further as the weeks deepen.
A Maple spokesman said the platform will withstand all withdrawals in the coming weeks. The protocol design allows lenders to withdraw cash only when available. This means that the platform does not have to limit or suspend withdrawals.
Maple also revealed that lenders will continue to earn MPL (Native Token) rewards regardless of the waiting time from the borrower.
Meanwhile, Maple explained how to mitigate risk and access borrowers.The list of borrowers is It is open to the public.. Currently, there are 66 valid loans worth $ 1.5 billion.
Maple denies exposure to Celsius, others
Maple assured lenders that they were not directly exposed to other struggling crypto companies facing liquidity issues.
Cryptographic lender revealed in Press update Celsius Network is not borrowing from that platform. Instead, the embarrassed company is the only lender of the pool it operates.
Celsius lends capital from his balance sheet and does not borrow from Maple.
They are the only lenders to the $ 20 million pool they run. There are no external depositors and the pool has no interdependence with other pools.
All this information is in the Maple web app
— Maple (@maplefinance) June 13, 2022
Regarding Three Arrow Capitals, Maple states that he has decided:
Most borrowers are market / delta neutral and the volatility of the trading market. In other words, it is unlikely that you will be directly exposed to 3AC.
Maple acknowledges that the Orthogonal USDC Pool has provided a $ 10 million loan to Babel Finance, which has temporarily suspended withdrawals.
Orthogonal acknowledges that Babel has a $ 10 million loan from Maple’s Orthogonal USDC pool.
Orthogonal has been in daily contact with Babel’s management since Babel stopped withdrawing, focusing on protecting the interests of lenders.
— Maple (@maplefinance) June 21, 2022
However, it is in contact with Babel’s management and will provide new updates upon arrival.
