The Maple Finance platform is a new way of lending where we can lend our assets to institutional and corporate clients. One of the good things about Maple is that you don’t have to put down a deposit and the deposit can be less than what is required. The native token of this protocol is the MPL digital currency, which is used to establish the platform and vote for protocol changes. Stay with us till the end of the article to learn more.
Introduction to Maple Finance
Maple Finance is a credit market based on Solana and the Ethereum blockchain. The Maple platform allows users of these two blockchain platforms to lend tokens to financial institutions and earn profits. Lending to institutional clients is a good way to make a profit from your assets, but on many traditional platforms the minimum capital required for this type of loan is very high and many customers do not have this amount of capital. The Maple Finance platform has no special restrictions and with this small capital you can borrow and make a profit.
How does the Maple Finance market work?
In decentralized credit markets such as Maple Finance, users can borrow more than the amount deposited on the platform, which improves the efficiency of these types of platforms. In other words, the user (as in other lending platforms) does not need to deposit a large guarantee on the platform. Also, recovered debt can be refinanced. Unlike Aave Arc, which is an authorized pool for institutional investors, in Maple Finance anyone can be a liquidity provider and earn a profit by lending their assets.
Users can contribute to the platform in various ways: lending, investing, borrowing or becoming an agent of the group. Lenders can deposit their capital in lending pools managed by institutional agents. In addition to the interest on the loan, users who lend the loan will receive the native Maple Finance (MLP) token.
Agents are intermediaries between lenders and borrowers. In addition to raising capital for themselves, they make the necessary capital available to selected borrowers through the underwriting process. Brokers determine loan terms and evaluate borrowers for credit, expertise and efficiency. If the parties agree on the collateral and interest amount, the loan is financed from the pool in question.
Depending on your creditworthiness, financial institutions may be able to provide low collateral loans that do not require a down payment or liquidity. Appraisal costs are also borne by the borrower, which may be a hedge fund, stock exchange or market maker. By putting MLP tokens into funds, depositors are offering their shares as insurance and protection against losses. If the loan is not repaid, these tokens will be voided. Instead, a portion of MPL’s loan fund rewards and tokens will be returned to depositors.
In order to become an agent and manage the loan protocol, one must be whitelisted. It must go through the Maple Finance management approval process to be whitelisted. After confirming the representative and creating a user account for him, the corresponding loan fund will be launched. An agent must have a minimum deposit in the group ($100,000). Other depositors can add additional funds to the fund if they wish.
Lenders and depositors check the information of agents and choose the desired place to provide liquid. After creating a profile and determining loan terms, borrowers submit their applications for review by Maple Finance representatives. If the pool agent agrees to the terms of the borrower, he will begin the process of investigation and evaluation. Once both parties agree to the terms, the borrower creates a loan contract and the agent guarantees the correct loan.
After receiving a loan, interest and loan collateral are paid by the borrower over time. Credit fees are also billed separately and sent to the agent and Maple DAO. This process will continue until the final payment and the end of the loan term.
What services does the Maple Finance platform offer?
Maple Finance has three main features: stacking, lending, and borrowing. You can leverage your holdings by investing in MPL tokens and providing liquidity to the lending pool.
Adhesion
During the deposit or deposit process, you will receive a reward when you save digital currency. Depositors help support blockchain transactions by investing their tokens, and in exchange for cooperation, depositors are paid a percentage of the blockchain currency.
Currently, Maple Finance can only invest MPL tokens. To access the betting section, select “Maple Finance XMPL” from the corner menu. When you deposit MPL tokens, you will receive xMPL tokens, which have a 1:1 relationship with the price of MPL.
The Maple Finance platform distributes MPL tokens proportionally to xMPL holders every month. Therefore, holding xMPL tokens is still useful. Additionally, with xMPL tokens, you can vote on important decisions about the Maple Finance platform, such as how to redeem and distribute revenue. Simply convert xMPL tokens to MPL tokens to release assets.
Borrow
On the Maple Finance platform, you can borrow cryptocurrency and pay it back later with little extra interest. In fact, you borrow the tokens stored in the pools, and by investing these tokens, you can earn enough profit to repay the loan. The minimum loan amount you can get at Maple is $1,000,000.
To get a loan from Maple Money, you need to provide your identity information like your name, Twitter account, Telegram account and email address on the platform. A representative of the pool from which you wish to borrow will review your application and perform the necessary checks (verification and anti-money laundering). If your application is approved, you determine the terms of the loan and the money will be deposited in the wallet connected to the platform. When the loan is paid off, you deposit the money back into the platform.
Borrow
Maple Finance has several loan pools where users can earn profits by lending their assets. Currently, only tokens can be borrowed from the Ethereum and Solana blockchains, mainly USDC and (wETH). To participate in a pool, you must have the corresponding token in your wallet.
To credit your assets, click on the desired pool and deposit tokens from your wallet into the pool. On the pool selection page, you can see a detailed performance report for each pool. These reports help you make better decisions. The interest rate of the pool varies depending on the token type and market conditions. Note that lenders like sponsors get monthly MPL bonus.
Financial Maple Map (Financial Maple)
Currently, Maple Finance has not provided a new roadmap for the end of 2023 and beyond. Below is the initial roadmap provided by Maple, all done:
Season 2 2021: Launch on the Ethereum network
Season 3 2021: Development of 2 public pools
Q4 2021: Issuance of the first consolidated DeFi loan
Q1 2022: Offer IBN and traditional financial institution loans to Maple Finance.
Period 2 2022: Solana network launch, xMPL token launch and mining solution launch.
Third quarter 2022: Introduction of one-way pool supply capacity and flexible pool settings.
Season 4 2022: Launching the second version of Maple and creating smart contract structures.
Q1 2023: Launch of commercial credit and product contracts
Q2 2023: Implementation of financial controls
What is an MPL token and what does it do?
MPL digital currency is a sovereign independent token launched on the Ethereum blockchain. MPL holders can stake their tokens on the Maple Finance platform or use them to vote on protocol changes (such as setting fees, burning new tokens or coins). The total supply of Maple tokens is 10 million and the circulating supply is 4.4 million.
The MPL token has three main roles: governance, providing liquidity to groups, and distributing network fees (collected in the Maple treasury).
The MPL token distribution model is as follows:
30% liquid removal
25% idea development and consultation
26% planting ideas
5% of general sales
14% in cash
The use of the MPL symbol is highly dependent on the Maple Financial Framework. The more users use the platform, the more MPL tokens will be needed to make management decisions or vote, which will increase the value of the token. If many users leave the Maple platform, the value of your token will obviously decrease as well.
The highest price of MPL Token so far is $68.2 (April 21, 1401) and the lowest price is $2.65 (January 11, 1401). Currently, the price of this token is $ 6.39 and its total market capitalization is more than 50 million dollars. The total supply of MPL tokens is exactly 10 million tokens and its circulating supply is around 8 million.
On which exchanges can the MPL token be traded?
MPL tokens are currently listed on Coinbase Central Exchange, Coinx, BingX, Gate, Gemini, Bitstamp and Balancer Decentralized Exchange. MPL is a token based on the ERC-20 standard, so it can be stored using a wallet that supports this standard. Metamask hardware wallet, Trustvolt, Atomic, Coinbase, Ledger and so on.
