Crypto lending platform Maple Finance is gearing up for a comeback with a yield-generating product. The comeback marks a shift from crypto lending following defaults to offering real-world assets to investors.
The blockchain-based credit protocol Maple Finance confirmed unveiling a liquidity pool targeting trade receivables to the crypto investors. The protocol’s latest approach involves onboarding conventional financial investments onto the blockchain platform.
Maple Unveiling USDC Stablecoin Pool
The unveiled USDC stablecoin pool targets to facilitate firms in receiving cash advances discounted on the tax rebates. In addition, the pool targets to offer cash advances for a discounted fee for investors involved in the Employee Retention Credit (ERC) program from the Internal Revenue Service (IRS).
Maple explained that the qualifying firms would utilize the receivables as pledges and collaterals to advanced loans. The investors participating within the liquidity pool can derive returns when the IRS transfers credit.
The liquidity pool targets a 10% annualized yield where investors can lock up a minimum of $500000 USDC for 45 days. Maple Finance management clarified that accredited investors are open to joining the pool. However, institutional asset managers and the decentralized autonomous organization should furnish the customer details and satisfy the anti-money laundering assessments.
The blockchain protocol is optimistic about increasing the pool to $100 million. Also, Maple Finance is mulling a lower entry barrier when the pool scales its size.
Also read:Delegated Duties in the Stablecoin Pool Unveiled
Maple Finance offers blockchain-based tech to establish and run liquidity pools. It engages the London-based firm AQRU in managing the pool and overseeing application and loan books. The funds borrowed are overseen by Intero Capital Solutions, the loan originator specializing in lending to qualified applicants.
The unveiled product suggests that Maple Finance is shifting away from offering uncollateralized crypto lending. The previous product left the protocol with a $52 million bad debt. Mapple Finance management regretted that the liquidity providers within the pool incurred 80% losses. The loss arose when the largest borrowers admitted exposure to the calamitous FTX downfall.
AQRU chief executive Phil Blows indicated that while receivables financing is among the traditional commercial financing, onboarding to blockchain would yield a first-mover advantage. He added that integrating the conventional investment into crypto investors would benefit those desiring to earn yield from conservative investments.
Yield Generating Strategies Integrating Traditional Digital Assets
The latest product comes after Maple initiated a September credit pool targeting the troubled bitcoin miners. The pool is yet to issue a single loan to the struggling bitcoin mining firms.
Integrating real assets into the crypto ecosystem indicates Maple Finance is overhauling its portfolio by shutting down the existing active lending pools. The firm’s chief executive Sidney Powell showed that the new pool is among the yield-generating strategies Maple is adopting from conventional finance.
Powell promised to unveil new pools facilitating investment within insurance refinancing products and treasury bonds. The executive admission coincides with the latest revelation of crypto and traditional products commingling with DeFi platforms. The integration allows tokenizing real-world assets by onboarding them on the blockchain. The yield-generating products are projected to dominate 2023, with Ondo Finance leading other DeFi protocols in tokenizing corporate credits and treasuries.
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