Maple Finance Announces the Launch of its Direct Lending Program

Maple Finance Announces the Launch of its Direct Lending Program
Table of Contents

Based on the tweet shared by the team at Maple Finance, it has come to light that the firm has launched its direct lending program for the masses. Crypto analysts believe that the launch of the new program would completely replace similar services offered by Celsius, BlockFi, and a number of other bankrupt lenders. Maple Finance highlighted that the lending pool would be made available at some time in July. The firm also stated that Web3 now has a specialist digital lender to meet the growing demand for direct lending with the launch of Maple Direct.

Maple Finance is widely used by Web3 businesses to obtain loans that allow them to easily finance either expansion or product launches. Previously, the firm resorted to the use of credit professionals, also called pool delegates, to provide capital for these loans. An example can be linked with Celsius using Maple Finance for the creation of a Wrapped Ether lending pool back in February 2022. However, the situation back then took a turn for the worst when some of the most prominent Web3 leaders went bankrupt.

Maple Finance Claims that the Program is a Breakthrough for Web3

Maple Finance Claims that the Program is a Breakthrough for Web3

As per the announcement, Maple Finance mentioned that it would fulfill the role of a lender on the platform if the situation demands it. At the same time, it would also provide capital from institutional allocators to creditworthy borrowers via its credit underwriting expertise. This suggests that anyone failing to obtain loans from other providers would be able to obtain them through Maple Direct.

The firm has continuously stated that the program had become necessary as several major Web3 lenders have walked out of the space. Similarly, the firm believes that traditional lenders lack the capability and the required expertise to underwrite innovative groups of Web3 firms. Maple Finance announced that it would continue to focus on the expansion of its existing services, suggesting that the firm would not replace the current platform that features competing lenders.

Lenders at Maple Finance had to suffer considerably as a result of bankruptcies filed by both Alameda and FTX. Aurus Global missed one of its major payments as a result of the event, and Maple Finance ended up cutting ties with Orthogonal Trading over alleged misrepresentations. However, the platform was quick to recover from these events and launched version 2.0 of its software in December. 


Follow us on Social Networks

Crypto Tutorials

Crypto Reviews