3 - 4 minute read
Blockchain-based crypto lending protocol, Maple Finance, is preparing to launch a lending pool that invests in US Treasury bonds. This news has brought attention to Maple as the platform is recovering from a challenging year for crypto lending. The industry was plagued by insolvencies of borrowers and faced a collapse after FTX exchange’s sudden implosion in November. Maple experienced $36 million worth of credit defaults, and as a result, a loss for liquidity providers, which caused the total value locked (TVL) on the protocol to drop to $40 million from $930 million last May per data by DefiLlama. However, Maple is recovering and has recently announced several changes that will assist the platform to position itself as a credit platform connecting traditional finance and blockchain technology.
Maple is responsible for devising a system that will enable accredited investors and corporate treasuries based outside the US to invest their stablecoin holdings in US Treasury bonds and earn a yield. The platform expects that there will be a demand for the pool since crypto investors are seeking yields in traditional assets such as government bonds, and the confidence of the banking system has decreased after several bank implosions in the US.
The CEO of Maple, Sidney Powell, announced that the platform is also planning to hold a community vote later this year about new tokenomics and utility for its native token, MPL. The MPL token value rallied significantly, covering 23%, before the announcement of the community call that was attended by Coindesk.
Some of the features that the Maple platform plans to introduce are Maple Prime, which will allow borrowers to actively manage their collateral positions. The protocol also plans to extend its services into open-term lending, which will enable borrowers to open credit lines without a maturity date.
In an interview, Powell commented, “Real-world asset lending is going to be a huge trend.” Maple is also working on producing a lending pool for tax receivables lending, which will result in the platform expanding its service offerings.
The implications of Maple’s new US Treasury pool are significant as it signals a recovery for the platform and the wider crypto lending industry as the introduction of the treasury bonds pool aims to attract investors who are looking for yields of traditional assets.
The Bottom Line
Maple Finance is preparing to launch a lending pool geared towards stablecoin holdings in US Treasury bonds, and it expects demand for the pool from the crypto industry. The platform plans to introduce several new features, including Maple Prime and open-term lending, as part of the credit platform connecting traditional finance and blockchain technology. The introduction of this pool has brought attention to Maple, which is making strides to recover from a difficult year for the crypto lending industry.
