Last updated: 18th May 2022
This article covers:
Steps taken since 05/09/22 - posted 05/11/22
Update on capital available for withdrawal - posted 18th May
Maple and the Delegates contacted all borrowers on 05/09/22, and confirm none have material exposure to UST/Luna. All signs point to healthy loan books, and we are confident in the high quality counterparties on the Maple platform. We continue to be in close contact with all parties and will post updates to this article.
In more detail, borrowers on Maple are typically high frequency traders and delta neutral market makers - rarely yield farming funds. The majority of these borrowers weathered March 2020 and May 2021 when Bitcoin and crypto markets fell over 50%, and made substantial profits because they trade volatility. There are 4 borrowers representing ~2% of a $960M loan book that derive more revenue from yield farming. We contacted each of these and confirmed they had no material exposure to UST and the Luna ecosystem.
The other borrowers on Maple are generally engaged in arbitrage strategies on centralized exchanges as a core business line. No borrowers have missed interest payments since inception in May 2021. We will continue to monitor and keep in close contact with our borrowers. A reminder - Maple also uses Pool Cover as a first loss buffer to protect lending capital in the event of default.
DeFi is not without its risks. But borrowers on Maple go through a full due diligence process conducted by Delegates to mitigate credit risks. This involves reviews of financial statements, risk management, operational security, management meetings and ongoing monitoring with up to date financials every month and quarter. A number of Maple’s pool delegates, including X-Margin themselves, also utilize X-Margin’s risk monitoring technology which offers the ability to follow changes in borrower’s asset positioning and wallet/exchange balances in real-time. And perhaps most importantly, each borrower enters into loan agreements with full legal recourse.
Capital availability is limited
The Maven 11 USDC and Orthogonal Trading pools are facing higher withdrawal requests than usual. Whilst lending appetite remains high and capital continues to flow into the pools from new deposits, interest and loan repayments, we anticipate instances where capital is not available to be withdrawn over the coming weeks.
We are monitoring withdrawal requests and sourcing new deposits with Delegates to resolve this problem and service all withdraw requests. In the instance where the withdrawal amount requested exceeds the amount of capital available in the pool, the withdraw request will not be processed at that time.
Withdrawing is first-come first-serve. If you don't manage to withdraw within the 48-hour withdraw window, you will need to activate a new 10-day cooldown timer.
After 90 days a withdraw request can be triggered, which activates a 10-day cooldown timer. When the timer passes, there is a 48 hour window to withdraw all or part of the position.
Interface terms of service can be found here: https://maplefinance.gitbook.io/maple/additional-links/interface-terms-of-use
Additional questions regarding withdrawals can be directed to the Maple core team - Martin and Charlotte.
In-app, if you are unable to withdraw, please message the team through the Intercom chat, and the Maple team will get back to you directly there.
We will continue to focus on growing capital available and sourcing the necessary liquidity for users of Maple.