Maple Finance, a Web3 lending platform, has unveiled the launch of its direct lending program, aimed at replacing the services previously offered by now-defunct lenders such as Celsius and BlockFi.
The platform’s development team shared a fact sheet on June 28, highlighting their intention to roll out the first lending pool in July.
Maple Finance serves as a blockchain institutional capital marketplace, facilitating loans for Web3 businesses seeking funds for product launches and expansions.
Previously, the platform relied on credit professionals known as “pool delegates” to provide capital for these loans.
Notably, Celsius utilized Maple to establish a Wrapped Ether (WETH) lending pool in February 2022.
However, during the bear market of 2022, several prominent Web3 lenders faced bankruptcy. Celsius ceased operations in July, followed by BlockFi in November, and Genesis in January.
In response, Maple Finance’s team announced on June 28 that they would step into the role of a lender on the platform in certain cases.
Leveraging their credit underwriting expertise, they will source capital from institutional allocators to support creditworthy borrowers.
This means that individuals who are unable to secure loans from other providers may have the opportunity to obtain them through Maple’s new program, Maple Direct.
According to the team, this program is necessary due to the exit of major Web3 lenders from the space, with traditional lenders lacking the required focus and expertise to underwrite for innovative Web3 technology firms.
The first direct lending pool will focus on infrastructure, asset management, and liquidity providers. Capital allocators, including Crypto Funds, DAOs, VCs, HNWI, Yield Aggregators, and Family Offices, have been invited to participate in the program and earn yield on their investments.
The announcement emphasized that Maple will continue expanding its existing services, indicating that Maple Direct will not replace the current platform, which features competing lenders.
In the past, Maple Finance faced challenges due to the bankruptcies of FTX and Alameda Research in November.
One borrower, Aurus Global, experienced payment issues as a result, and Maple severed ties with Orthogonal Trading over perceived misrepresentations.
However, the platform quickly rebounded, releasing version 2.0 of its software in December.
With its direct lending program, Maple Finance aims to fill the void left by the collapse of major Web3 lenders and provide creditworthy borrowers with the necessary capital for their projects.
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