Maple Finance Now Multi-Chain
An underserved area of decentralized finance—uncollateralized lending—has expanded to a new blockchain.
Maple Finance offers gone live Solana. The Solana blockchain team will issue uncollateralized loans to corporate debt buyers starting at $45 million. Plans are for a $300,000,000 pool by 2022.
The privacy-preserving, data-driven lending platform X-Margin, CoinShares, the digital asset managers CoinShares, Circle and the stablecoin issuancer Circle are all partners in the expansion.
Sidney Powell, co-founder of Maple and chief executive officer, announced the announcement:
“Building the first multi-chain capital market solution has and will continue to attract high-quality lenders and borrowers, create unprecedented growth opportunities for innovators building on Solana, and enable the entire industry to thrive.”
Maple Finance allows crypto-native businesses to use uncollateralized loans to maximize their operations in a capital efficient manner that is otherwise difficult. Maple Solana is home to the first Maple Solana borrowers, which includes the crypto-focused venture business Framework and Alameda Research, which is Sam Bankman Fried-backed.
Maple, which is a hybrid of central and decentralized finance, uses human actors in order to evaluate potential borrowers on their creditworthiness. Before a loan is granted, hopeful borrowers must go through a rigorous due diligence process. X-Margin will be the first pool delegate to perform this task on Maple Solana. It is charged with credit scoring as well as issuing, underwriting and managing interest payments and payments for institutional loans. It will use Maple’s infrastructure to actively manage these tasks.
At press time, the Maple Solana pool has over $34 million in Circle’s USDC stablecoin and is likely to hit its initial capacity soon. Maple, which was launched almost one year ago, has provided approximately $900 million in liquidity to the Ethereum ecosystem and has also originated loans worth $1.2 billion.
Maple grew its services to include centralized finance lenders last February by adding Celsius to its roster. Celsius introduced $30 million worth of wrapped Ethereum that institutions could borrow. All borrowers must pass know-your-customer (and anti-money laundering) checks to ensure they are able to use Maple in compliance with regulations.
Maple Solana also plans to launch its SYRUP governance token sometime in the next three-to six months. This token will be very similar to Maple Ethereum’s MPL token. A Maple representative also said Crypto Briefing that the next loan assessor to be onboarded after X-Margin will be “an established b2b crypto lender, brokerage, custody, and trading firm.”