DeFi
Blockchain-based crypto lending protocol Maple Finance is getting ready to launch a lending pool that invests in U.S. Treasury bonds, co-founder and CEO Sidney Powell mentioned throughout a protocol group name on Tuesday.
Powell additionally mentioned that Maple is planning to carry a group vote later this yr about new tokenomics and utility for its native token MPL.
MPL rallied 23% forward of the group name.
The developments come because the platform is recovering from a disastrous yr for crypto lending that was plagued with insolvencies of debtors. After FTX’s sudden implosion final November, Maple skilled $36 million of credit score defaults, inflicting hefty losses for liquidity suppliers.
The overall worth locked (TVL) on the protocol, a preferred metric in decentralized finance, dropped to $40 million from $930 million final Might, per information by DefiLlama. The MPL token plummeted to as little as $4 from an all-time excessive of $68.2 final April.
Learn extra: Maple Finance’s $54M of Bitter Debt Exhibits Dangers of Crypto Lending With out Collateral
Maple launched an upgraded model of its platform late final yr and began a brand new tax receivables lending pool final month as a part of the protocol’s effort to place itself as a credit score platform connecting conventional finance and blockchain know-how.
“Actual-world asset lending goes to be an enormous pattern,” Powell mentioned throughout the name.
The upcoming pool will permit accredited traders and company treasuries primarily based outdoors of the U.S. to speculate their stablecoin holdings in U.S. treasury bonds and earn a yield.
The protocol expects demand for the pool as crypto traders are on the lookout for yields in conventional property resembling authorities bonds, whereas belief in banking amenities has decreased after current financial institution implosions within the U.S.
See extra: SVB Collapse Exhibits the Rot in U.S. Banking and {Dollars}
Maple can be engaged on new additions to its lending choices, Powell mentioned throughout the name. A brand new characteristic, internally known as Maple Prime, will let debtors actively handle their collateral positions. The protocol plans to increase into open-term lending, which can let debtors to open credit score traces to borrow with out a maturity date.
