Maple Finance, a cryptocurrency capital market, has expanded its support from Ethereum to the Solana network. The protocol has so far deployed a $45 million fund to support the ecosystem’s growth.
Maple Finance expands to Solana
Maple Finance is a platform that offers undercollateralized loans targeting institutional investors. The platform will now support Ethereum (ATH) and Solana (SOL) loans. The platform released a blog post on April 25 saying that it had issued more than $1.2 billion worth of loans, with the current total value locked (TVL) on the platform reaching more than $900 million.
The fund for this project was created through collaboration with the X-Margin decentralized finance (DeFi) platform. The capital for the same was provided by Circle, the issuer of the USDC stablecoin, CoinShares, and other projects within the Solana network.
The objective of Maple Solana was to integrate the on-chain capital-market infrastructure provided by Maple to bring scalability to the Solana network. The project would also address the financial needs of the platform. The expansion to Solana is expected to foster increased activity on the Solana network.
“Over the next three months, we expect to bring over $300 million of liquidity to Solana. We will soon welcome another credit expert to the platform and share more details on how liquidity protocols are already using Maple’s infrastructure as a launchpad onto Solana,” said Quinn Barry of Maple Solana.
Barry later said that maple Finance was planning the launch of a permissioned pool to enable protocols, decentralized autonomous organizations (DAOs) and other institutions to borrow funds by the end of the year.
Maple Solana has also announced the issuance of the SYRUP governance token in 2022. The token will be similar to the MPL governance token used on the Ethereum network. X-Margin is Maple Solana’s first pool delegate, and it currently has $34 million worth of total cash.
Moreover, the platform does not have any active loans, and deposits do not currently generate any interest. X-Margin had said that the pool would control $300 million by the end of the year.
Maple Finance is preferred by institutional investors
Maple Finance has become a preferred platform by institutional investors. The platform aligns with compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements. Such levels of compliance are not adhered to by many DeFi lending platforms.
However, the regulatory framework is changing, and protocols are now requiring users to comply with KYC. Protocols such as Celsius require users to submit KYC information, and they have launched a pool delegate through Maple’s Ethereum application. A DeFi lending protocol, AAVE, also runs a permissioned Aave Arc pool that requires users to submit their KYC information.
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