Celsius, a digital asset lending platform has announced its partnership with Maple Finance, a decentralized marketplace. Celsius will become its first CeFi lender on the platform.
Celsius is a platform that provides quick transactions, no fees whatsoever, and fair interest. They believe that most of those services were abandoned by the banks. The goal is to disrupt the financial industry and introduce crypto to whoever is even partially interested.
On the other side, we have Maple Finance. Maple Finance is a marketplace that is powered by blockchain technology. They offer efficient financing for borrowers and sustainable yield sources for lenders.
Since Maple Finance is a decentralized marketplace, having CeFi will offer many benefits. One of the main ones is a lot better security of traditional products. Thanks to CeFi, users would be able to earn interest by borrowing money, spending with their crypto card, and more.
Celsius became the first platform that offers a crypto-centric lending service on Maple Finance. Using smart contracts and the infrastructure of blockchain, they will be able to foster a $30 million pool to the investors.
wETH as the main complement
The $30 million pool will be set up in wrapped Ethereum (wETH). Institutions such as Amber group will be borrowing from Celsius’ wETH pool based on their on-chain reputation.
As mentioned earlier, Maple is a decentralized debt marketplace. This marketplace allows other institutions to borrow crypto from liquidity funded by DeFi investors.
Considering the fact that Maple was released 9 months ago, it is relatively new. So far, they originated $770 million in loans, and about $650 million in total value is locked on the platform.
The CEO of Maple, Sidney Powell, mentioned that over 26 institutional borrowers are part of the project. He also noted that the liquidity utilization rate never went below 80% ever since the beginning.
Powell also states that they are very proud of the partnership with Celsius. Before Celsius, the core digital asset for loans was USDC.
Celsius lost $54M thanks to BadgerDAO’s hack
Nevertheless, this is not the first time Celsius tried to take part in DeFi for its interest. BadgerDAO’s hack that happened back in December 2021 made the Celsius network lose over $54 million.
The access to the Badger app’s website was hacked and it was injected a very malicious javascript code. This code allowed hackers to pull out the money from the wallets of all the users that were part of the website. This means that the javascript code caused rogue transaction approvals.
The exact amount of money that was lost was never disclosed by the company’s team. Not so long after, BadgerDao announced working with Chainalysis and law enforcement to help track and retrieve all the stolen funds.
Your capital is at risk.
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Source: https://insidebitcoins.com/news/celsiuss-30-million-weth-lending-pool-on-maple-furnance