Maple Finance, a blockchain institutional capital marketplace, has introduced its new direct lending program called Maple Direct. The platform aims to fill the gap left by now-bankrupt lenders like Celsius and BlockFi, offering a trusted direct lending desk in the Web3 space.
Traditionally, Maple Finance relied on credit professionals known as “pool delegates” to provide capital for loans to Web3 businesses. For instance, in February 2022, Celsius partnered with Maple Finance to create a Wrapped Ether (WETH) lending pool. However, with the bear market of 2022 causing major Web3 lenders to go bankrupt, Maple Finance decided to step in as a lender itself.
Through its Maple Direct program, Maple Finance will utilize its own credit underwriting expertise to provide capital from institutional allocators to creditworthy borrowers. This program is designed to cater to the innovative Web3 technology firms that have been neglected by traditional lenders such as banks. By offering its direct lending services, Maple Finance aims to meet the growing institutional demand for capital in the Web3 space.
The first direct lending pool on Maple Finance’s platform is set to be launched in July. This pool will primarily focus on lending to infrastructure, asset management, and liquidity providers. Capital allocators, including Crypto Funds, DAOs, VCs, HNWI, Yield Aggregators, and Family Offices, are invited to participate and earn yield through the program.
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It is important to note that Maple Direct will not replace the existing platform and its competing lenders. Maple Finance will continue to expand its existing services while providing additional options for borrowers through its new lending arm.
Maple Finance faced challenges when FTX and Alameda Research declared bankruptcy in November. These events caused repercussions for lenders on the platform, and some borrowers, like Aurus Global, even missed payments. Maple Finance also severed its ties with borrower Orthogonal Trading due to alleged misrepresentations. However, the platform quickly recovered and launched version 2.0 of its software in December, aimed at speeding up the defaulting process and enhancing its service.
With the launch of Maple Direct, Web3 businesses now have a specialized digital native lender on their side. Maple Finance aims to serve as a trusted and reliable source of capital for these businesses, supporting their product launches and expansions. As the Web3 ecosystem continues to grow, the need for such lenders becomes even more crucial.
Maple Finance’s direct lending program provides an alternative financing option for Web3 businesses in need of capital, especially when traditional lenders lack the necessary focus or expertise in the Web3 space. By utilizing its own credit underwriting expertise and collaborating with institutional allocators, Maple Finance’s Maple Direct program aims to bridge the gap and meet the growing demand for capital in the Web3 industry.
With the launch of the first lending pool in July, Maple Finance is well-positioned to mark its presence as a trusted and reliable lender in the Web3 lending space. As the platform continues to expand its services, it is expected to play a significant role in supporting the growth and development of the Web3 ecosystem.
