Maple Finance Unveils New Investment Opportunity in U.S. Treasury Bonds
Maple Finance, a lending protocol, has announced plans to launch a new liquidity pool that invests in U.S. Treasury bonds.
Sidney Powell, the CEO of Maple Finance, revealed the plan during a community call on Tuesday. The liquidity pool will enable stablecoin holders outside of the U.S. and accredited investors to invest in U.S. Treasury bonds and earn a yield.
Later this year, a community vote will take place to discuss new tokenomics and utility for Maple Finance’s native token, MPL. Ahead of the call, the token’s value rose by 23%.
In December, Maple Finance terminated its relationship with one of its largest clients, Orthogonal Trading, after discovering that the firm had “misrepresented its financial position.”
Orthogonal Trading had outstanding loans worth $31 million on the M11 credit pool. However, the firm failed to repay the loans approximately four weeks before Maple Finance realized the firm was insolvent.
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In addition, Orthogonal Trading had claimed that its exposure to FTX was limited, which was not accurate.
As a result of FTX’s collapse, 80% of liquidity providers on the platform faced significant losses amounting to $36 million worth of credit defaults on M11. Nevertheless, M11 recently announced that it is operational again and raising funds for its KYC pool on Maple.
M11’s team anticipates that Ethereum’s Shanghai upgrade and increased regulatory pressure will provide market-neutral trading firms with opportunities. They believe financing options have become scarce for such firms as CeFi lenders can no longer provide cheap capital, and crypto banking issues limit on-ramp options, particularly for USDC, in recent weeks.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
