FTX-Alameda casualty Maple Finance launches institutional lending

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Maple Finance introduces Syrup, a new DeFi protocol for secured institutional lending, following the FTX-Alameda crisis. Learn more about its impact and community reactions.

On May 28, Maple Finance, an institutional lending platform in the decentralized finance space, launched Syrup, a new protocol aimed at providing institutional yield to the DeFi community., Maple Finance will use fully collateralized loans to “the largest” crypto institutions to source the generated yield — a move some community members consider with skepticism in light of the FTX-Alameda debacle.

Maple Finance experienced loan defaults due to exposure to entities connected with FTX, such as Orthogonal Trading, which defaulted on $36 million in loans. The loan default impacted Maple’s lending pools and resulted in significant losses for lenders on the platform.X community members expressed mixed reactions surrounding the launch of Syrup. Multiple users questioned the necessity of introducing a new token, while others expressed lingering distrust due to unresolved FTX-Alameda matters.

"Bit to unpack here. But the jist is, you are matching aml kycless lenders to onboarded borrowers and I guess..passing on the burden to the borrowers that it's a permissionless pool with no aml kycd lenders? And as you are a tech platform it's not on you." In the announcement, Maple Finance also introduced the SYRUP token, which allows holders to stake in and participate in the ecosystem.

Holders of Maple Finance’s native MPL token can migrate to SYRUP on a one-for-one basis with no additional dilution planned.“A new protocol powered by Maple has been introduced, but why do we need a new token and the migration of $MPL to this new token ? Why not simply use $MPL to power the new protocol?”Maple Finance will host a webinar on June 4 at 7 pm UTC to discuss the inner workings of the Syrup launch.

 

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