Framework joins Polychain Capital in providing key funding to accelerate growth of the Maple protocol ahead of its launch on mainnet
Maple Finance, a decentralized finance (DeFi) protocol that caters to borrowers and lenders at both corporate and institutional levels, announced a $1.4 million investment from leading DeFi venture capital fund, Framework Ventures, and premier digital asset investment fund, Polychain Capital.
The joint investment plays a critical role in enabling Maple to develop sophisticated financial products for institutions in the DeFi industry, which until now has focused primarily on retail and typically requires collateral levels as high as 150 percent of borrowed funds. Maple’s first liquidity pool, set to go live in April, will certify Maple’s status as the foremost lending platform in the DeFi ecosystem for institutional players.
Using a mixture of smart contract technology, rigorous reputation vetting and blockchain’s added transparency and auditability, Maple will offer a smooth borrowing experience that combines the benefits of an OTC relationship and enables low loan-collateralization levels for strong counterparties. Moreover, to ensure that incentives are properly aligned, each of Maple’s planned liquidity pools will be overseen by a designated Pool Delegate. The architecture enables a “set and forget” investment opportunity for investors to provide liquidity to a diversified pool of DeFi’s premium institutions. Delegates are industry professionals who participate by liaising with corporate borrowers in their designated pools and which also stake their respective pools to ensure there are “skin in the game” incentives for aligning all involved parties.
“The launch of our first pool will be a significant moment for DeFi, enabling institutions, sophisticated investors and individuals to gain access to a stable, underlying yield that is generated from crypto-focused companies that are profitable and reputable,” said Sid Powell, co-founder and CEO of Maple Finance. “Another compelling facet of Maple is its unique system that combines the efficiency of decentralized protocols with the necessary human touch for bolstering confidence in the system.”
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The platform’s first liquidity pool will feature roughly $15 million in loans to top blue chip borrowers, including prominent market makers and trading funds. Governed by its MPL token, Maple offers a transparent record of performance that in turn fosters added confidence among participants.
“Maple’s innovation is a key component for widening the field for DeFi and providing a new way for big players to benefit from the industry,” said Michael Anderson, co-founder at Framework Ventures.” As more private borrow-lend activity moves to decentralized money-market protocols, Maple is paving the way, providing the most attractive opportunity for large institutional investors to date.”
