Maple reports no increase in bad debt, $10M inflows amid recent market crash

Share This Post

Decentralized credit protocol Maple reported that none of the platform users’ positions were liquidated during the Feb. 2 price crashes, resulting in no bad debt.

It also reported that users deposited $10 million to reinforce their margins over the period to avoid liquidation events. Over $10 billion was liquidated in a single day, as Ethereum (ETH) briefly dropped into the low $2,000 price area and major cryptocurrencies experienced declines ranging from 10% to 30%.

Maple is a decentralized credit protocol in which users deposit assets into a pool that acts as a credit line for institutions. According to rwa.xyz data, Maple managed $2.5 billion in loans as of Feb. 7. 

The report highlighted that Maple’s Blue Chip and High Yield Secured Lending products remained fully overcollateralized during this volatility, attributing this to margin calls issued before collateral levels became critical. 

The High Yield Secured pool saw $2 million in inflows during the massive liquidations on Feb. 2.

Maple’s Blue Chip Secured lending pool only accepts Bitcoin (BTC) and ETH as collateral, held by qualified custodians. Meanwhile, the High Yield Secured pool achieves higher returns by underwriting loans backed by specific digital assets and reinvesting the collateral in staking or secured lending.

Syrup is a pool that combines both strategies to boost yields, consequently presenting more risks. The pool issued margin calls to 35% of its loans, which led to $5 million in new deposits. 

Borrowers posted an additional $7.4 million in collateral and repaid $7.4 million in loans, strengthening Maple’s loan book stability. 

As of Feb. 6, collateralization levels across pools averaged 165%.

The report also highlighted that yield options available in DeFi protocols were withdrawn while their vaults continued to deliver two-digit annual returns.

Aave processes $210 million in liquidations

Aave also operated as intended during the large liquidations on Feb. 2. According to Chaos Labs data, the money market successfully processed $210 million in liquidations while maintaining zero additional bad debt.

Chaos Labs highlighted that Aave’s liquidation mechanisms ensured that positions were settled efficiently. Most liquidations occurred on the Ethereum main instance, minimizing losses to the protocol. 

Despite the scale of the liquidations, Aave’s existing bad debt decreased by 2.7% due to the declining value of debt assets.

The post Maple reports no increase in bad debt, $10M inflows amid recent market crash appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Crypto News: Bank of Korea Rejects Bitcoin for Foreign Exchange Reserves

The post Crypto News: Bank of Korea Rejects Bitcoin for Foreign Exchange Reserves appeared first on Coinpedia Fintech News The Bank of Korea (BOK) has firmly stated that it has “never

Coinbase’s Government Network Expands—145 US and 29 Global Entities Onboard

Coinbase is deepening ties with 145 US government entities as the nation accelerates bitcoin adoption, signaling unprecedented institutional demand and a seismic shift in crypto policy Coinbase

Ripple News Today: XRP Proposal Aims to Unlock $1.5 Trillion for Bitcoin Reserves

The post Ripple News Today: XRP Proposal Aims to Unlock $15 Trillion for Bitcoin Reserves appeared first on Coinpedia Fintech News After a long legal tug-of-war under Biden’s leadership, Ripple is

Peter Schiff: Bitcoin Could Crash Below $65K if Nasdaq Enters a Bear Market

Bitcoin faces a steep decline if the Nasdaq downturn deepens, warns Peter Schiff, predicting a wave of panic selling that could shake investor confidence and destabilize markets Peter Schiff Predicts

SEC vs Ripple: How Lawsuit Over XRP Could Wrap up in Days

A legal expert has outlined how the SEC’s lawsuit against Ripple over XRP could end within days, but a major hurdle—navigating the court’s injunction—may complicate the

Is The Bitcoin Cycle Peak In? Historical Halving Data Suggests Upside Potential Into Late 2025

Bitcoin is now down over 29% from its all-time high (ATH) in January, and speculation about a coming bear market is growing among investors After weeks of heavy selling pressure, Bitcoin has entered