Maple Finance Nearly Imploded, but Sid Powell Wants to Bring Back Its Billion Dollar-Plus Glory

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Last year’s crypto crash wiped out Maple Finance’s TVL as borrowers crumbled and lenders fled. In an interview with CoinDesk, the protocol’s co-founder and CEO lays out his plan for growth in an era of heightened risk management.

“The focus was on maximizing returns rather than capping downside risks," Maple co-founder and CEO Sid Powell said in an interview from the sidelines of Korea Blockchain Week, where he highlighted the need for a shift in perspective. “Risk consciousness was a secondary thought. Everyone was chasing the high returns, not thinking about the potential pitfalls.”

Orthogonal, which defaulted on $36 million in loans in the aftermath of FTX. The fallout with Orthogonal underscored the vulnerabilities in the DeFi space and the need for more stringent risk management practices. He further highlighted the importance of branching out into uncorrelated sectors, ensuring that Maple Finance would not be solely reliant on the volatile crypto market.$100 million liquidity pool for trade receivables"Lending to a portfolio of small businesses, such as successful software companies, is not impacted by Bitcoin's price fluctuations, introducing uncorrelated sources of credit into the DeFi space, which is beneficial,” he said.that sometimes now surpasses DeFi yield.

 

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