There's a common misconception amongst many market participants that OTC-style digital asset lending will be nonexistent this cycle. It's no secret why: last cycle's lending desks are defunct. Maple was a relatively small player last time around. As a new entrant committed to doing things the right way, it can be difficult to compete in a business where you are often at the mercy of your most irresponsible competitor (until they go out of business, that is). This time around, though, things are shaping up differently. I've been back at Maple for less than two weeks. During that time we've printed 8 figures worth of loans across a few deals, all facing large & reputable institutional counterparties: - USDC loan secured by SOL collateral (Maple's first altcoin-backed loan) - USDC loan secured by BTC collateral - wETH corporate lend paying lenders ~2x the ETH staking rate in native tokens Our High Yield Secured Pool is netting mid-high teens yields for stablecoin lenders. Our wETH and SOL lending pools offer native yield pickup at a premium to staking returns. We're currently lining up deals that will allow BTC holders to put their bags to work. This is being done via secured lending structures with active risk management, leveraging the benefits of on-chain finance, and with the proper legal infrastructure in place. And the demand to borrow is only going up in this market. That means Maple will only become more important for institutional borrowers who need access to capital. It also means that lenders will be compensated with superior risk-adjusted yields across stablecoins, majors, and altcoins. Contrary to popular belief, digital asset lending will not be left to rot amidst the flotsam of 2022. It's seeing a resurgence that's in its very early innings, and Maple is at the heart of it.
Many CeFi lenders are no longer in the market to service institutional borrowing demand, which is climbing substantially alongside elevated trading volumes. ➡ Listen in as Sidney Powell describes the opportunity for Maple Direct to become the home for digital asset lending.
