Maple Finance, a crypto markets platform, has decided to lend support to the Solana blockchain and to encourage ecosystem growth has also allocated a fund worth $45 million.
Maple uses several pool delegates to provide undercollateralized loans for institutional borrowers on Ethereum and, from now on, to Solana as well. In a blog post published on Monday, the project noted that it has already collected loans worth $1.2 billion and has over $900 million in TVL to the platform.
The ecosystem fund was launched in collaboration with X-Margin, a decentralized finance (DeFi) lending platform, while Circle, the issuer of USD Coin (USDC), CoinShares, the digital asset manager, among other anonymous projects native to Solana, are providing the necessary capital.
Maple shares its aim with the Solana arm, Maple Solana, which is to “bring Maple’s on-chain capital-market infrastructure to scale the Solana ecosystem” and also address the network’s financing needs.
Maple is hopeful that the latest move will immediately incite large activity on Solana. Quinn Barry, the head of Maple Solana, highlights:
The company plans to provide liquidity of over $300 million to Solana. Barry also shared that they will also be introducing another credit expert to the platform. Barry also mentions that further details will be shared later regarding how “liquidity protocols are already using Maple’s infrastructure as a launchpad onto Solana.”
In an update the very next day, Barry shared further plans for Maple in a tweet. The company also plans to launch a permission pool and enable decentralized autonomous organizations (DAOs), protocols and real-world entities to borrow funds by this year’s end.
In addition, this year, Maple will also be issuing the SYRUP governance token, which will be similar to the MPL governance token of Maple on Ethereum.
X-Margin serves as the first pool delegate on Maple Solana. The pool currently has $34 million in total cash, but there are no active loans, and deposits are not yet generating interest. By the end of 2022, X-Margin expects the pool to control $300 million.
Institutions are also interested in Maple’s platform since it verifies with necessary Know Your Customer/Anti-Money Laundering (KYC/AML) standards, like some DeFi lending protocols.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2022/04/26/crypto-market-platform-maple-finance-now-backs-solana-allocates-45-million-for-ecosystem-growth/