Reputation-based lending will hit Decentralized Finance (DeFi) next month with the release of Maple Finance’s “Pool Delegates” loan suite.
The Australian startup is expected to launch its first sub-guaranteed loan market with stable rates in April. Maple Finance has closed a $ 1.4 million funding round led by Framework Ventures and Polychain Capital to help develop and launch pools, according to a press release shared with CoinDesk.
“In the long run, we see Maple as the traditional lending connector for broader crypto firms,” Framework Ventures co-founder Michael Anderson told CoinDesk in a post. “Lenders want access to businesses in the crypto space and borrowers want to work through a platform that understands their business model.”
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In short, Maple provides organized loans using asset pools native to the world of DeFi. The delegators of the pool determine the interest rates, the value of the loan and the terms of payment according to the profile of the borrower, just like in the traditional banking sector.
Each pool will have different criteria, with the first of these pools holding $ 15 million and denominated in USD coin (USDC) stablecoin which goes live next month. This is very different from other primitives in the $ 20 billion DeFi loan market, which often only offer oversized loan packages.
Maple said the first pool will be made up of “blue chip borrowers, including leading market makers and trading funds.” Trading company Folkvang and market maker Wintermute are two first potential clients, Maple added. Additional pools will be created in other stablecoins, wrapped bitcoin (WBTC) and ether.
“The launch of our first pool will be an important moment for DeFi, allowing institutions, sophisticated investors and individuals to access a stable underlying return generated by crypto-focused companies that are profitable and reputable,” said said Maple Finance. Founder Sid Powell said in a statement.
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