Lending platform Maple Finance has become the latest firm to face liquidity problems.

The platform posted an update on its website in a post titled “Managing liquidity for lenders and borrowers,” saying: “There may be instances where there is insufficient cash in pools.”

Liquidity issues began this week, though Maple Finance says that as loans mature over the weeks to come, an increase in the available capital in the pools due to borrower repayments will allow lenders to go through with withdrawals. 

It also stated said lenders’ ability to earn interest and Maple token (MPL) rewards will not be affected.

Once all withdrawal requests are processed, pool delegates will begin to issue loans again. Orthogonal Trading, a cryptocurrency hedge fund, has acknowledged that there is a $10 million loan to Babel Finance from the Orthogonal USD Coin pool on Maple. 

Orthogonal acknowledges there is a $10M loan to Babel from the Orthogonal USDC pool on Maple.

Orthogonal has been in daily contact with Babel management since Babel halted withdrawals and is focused on protecting the interests of lenders.

Babel has halted withdrawals and released a debt repayment arrangement.

The crypto world has come under severe pressure with the recent market crash. Many platforms are facing liquidity pressures, pushing many to the brink of survival. Even mining companies are struggling, with Canadian firm Bitfarms selling 3000 BTC to improve liquidity.

Decentralized finance (DeFi) protocol Bancor has also suspended impermanent loss protection, citing hostile market conditions. This was one of the platform’s key features.

MakerDAO has paused DAI deposits, citing the same reason. And Three Arrows Capital is rumored to be facing insolvency.

It will take time and restrategizing for companies to recompose themselves and manage the market downturn without further damage. 

Such developments are part of the crypto market, though the great growth experienced in the past few years has certainly magnified the setbacks.

The post Maple Finance Says Lenders May Have to Wait for Borrower Repayments appeared first on BeInCrypto.

Similar to Notcoin - Blum - Airdrops In 2024

origin »

68 +