Maple Finance is a decentralized credit market powered by blockchain technology. Instead of requiring the overcollateralization of loans, it allows servicers, called "Pool Stewards," to issue loans from their loan pools based on a set of risk management criteria, in accordance with the protocol. documents.
Introducing Maple 2.0.
Maple 2.0 is a fundamental revision of the smart contract architecture. The new contracts are modular and robust and will make it easier for Maple to integrate on-chain capital markets. pic.twitter.com/5GGsMXaXhv
โ Maple (@maplefinance) December 14, 2022
However, in the aftermath of the FTX collapse, the platform experienced two major defaults by platform borrowers.
On December 1, algorithm trading and market maker Auros Global lost your payment of 2,400 Wrapped Ether (wETH) following Alameda's demise, causing the loan to enter a five-day grace period. That grace period has since passed, and the borrower has begun to incur in fines, according to a post from lender M11Credit.
Days later, on December 6, crypto hedge fund Orthogonal Trade admitted to having been "severely affected by the FTX collapse", prompting M11Credit to issue a notice of default on the funds of $36 million of loans.
The new revision of the protocol, dubbed "Maple 2.0," will update your smart contracts so that the Pool Delegate can handle and resolve defaults like these more quickly.
Previously, loans could only default if a borrower missed a payment and passed the grace period. This meant that the guarantee could not be liquidated even if the borrower admitted in advance that he was unable to make the payments.
in a blog post explaining In addition to the platform's new features, Maple said that in the event a borrower meets a condition of default, a Pool Delegate will now be able to declare an early default, making the loan payable immediately.
Also, when a borrower defaults within the grace period, the Delegate can pay off the loan, which means that all lenders within the group can realize a loss immediately while recovery is sought, he added.
Related: Politicians Attack Crypto, Demand Regulation at FTX Congressional Hearing
The new version of Maple Finance also includes features aimed at making changes to the quality of life of the lending platform.
Withdrawals can now be scheduled and prorated, and lenders can request withdrawals at any time, whereas previously they had to wait a minimum of 30 days to withdraw after their deposit.
Pool delegates now provide First Loss Capital, making them the first to suffer in the event of a default. Maple's team believes this will more closely align the interests of pool delegates with the interests of lenders.
It also introduces automatic interest compounding so that interest earned is automatically reinvested in the pool, eliminating the administration of redepositing.
Other changes include the adoption of ERC-4626 standards, which allow for more decentralized finance (DeFi) integrations and partnerships, as well as improved data and dashboards.
Crypto lending platform Maple Finance has unveiled a major protocol update aimed at making defaults and settlement procedures less cumbersome in the wake of recent defaults.
Post navigation
