Maple Finance, an institutional crypto lending protocol, reported a net loss of around $7 million at the end of the fourth quarter of 2022. This is to close the lending pool on Solana.
Maple Finance launched in May 2021 as a decentralized credit marketplace for institutional investors and lenders.From the beginning, the lending protocol has provided over $1.9 billion with corporate financing.
However, the lingering bear market and the knock-on effects of FTX’s collapse are impacting borrowers’ appetite for loan offerings.
at Maples Fourth Quarter 2022 Financial Report, Lending Protocol revealed that it has raised approximately $87 million in 23 new loans. That’s down 67% from the third-quarter record of $262 million. As a result, Maple closed the fourth quarter with $58 million in total active liquidity, compared to his $326 million at the start of the quarter.
During the reporting period, Maple recorded revenues of approximately $310,092 while expenses were approximately $3.57 million.
In addition, Maple suffered a loss of $151,933 from its M11 credit pool due to the Orthogonal Trading bankruptcy. As reported on December 5th, Maple has severed business ties with Orthogonal Trading. This was due to the insolvency of the lending agent, leading to an expected loss of approximately $3 million.
The fourth-quarter report adds that Maple has generated $5 million in revenue and $12.1 million in total expenses since its inception to date. As a result, cryptocurrency lenders have recorded a net loss of around $7 million by the end of 2022.
Maple said it will suspend all Solana loan pools and reduce its quarterly expenses from about $2.4 million to $1.2 million to reduce operating costs.
approximately $6.1 million Maple told the Treasury Department it would work to increase the runway to up to 16 months in a zero-revenue environment.