Cryptocurrency
Series of Defaults for Maple Finance
By KaChinging  •  December 24, 2022
For context, Maple Finance is a protocol that provides undercollateralized lending/borrowing. Very much similar to the now bankrupt Celsius/Hodlnaut, perhaps better in some ways since more info is available for on-chain sleuths. Octagonal Trading (see update) and Auros both got rekt by FTX and had defaulted on their loans in Maple Finance's M11 USDC and wETH credit pools. Resulting in losses amounting to roughly US$50mil for its lenders. As "compensation", affected lenders will be airdropped $MPL which is the governance token of Maple Finance. Hmm, $MPL appears to be on its way to becoming a stable coin. So the question here is, would you still park your money in Maple Finance? Is it worth risking 100% capital loss for 6%+ annual yield? Well, definitely not me. But that $1.8b locked in Maple Finance disagrees. Disclaimer: The information listed here is accurate at the point of writing. I am not ...
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By KaChinging
Engineer, 90s Baby, Newbie Investor, INTP, Sandwich Generation, Live to Work not Work to Live, Singaporean KaChinging is about a young working adult venturing into the unfamiliar world of investing to alleviate the burdens of living expenses, reduce reliance on monthly salary and hopefully achieve financial independence.
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