Maple Finance, a crypto capital marketplace, has added support for the Solana blockchain and launched a £35.4 million fund to help the ecosystem flourish.
The DeFi platform provides access to undercollateralised loans for institutional borrowers from pool delegates. This is a one-of-a-kind DeFi primitive that allows specific parties to borrow crypto assets without needing to lend funds beforehand.
In a Monday blog post, the project announced that it has “originated over £0.94 billion in loans and currently count over £707 million in TVL to the platform.”
The fund was formed in collaboration with X-Margin, a decentralised finance (DeFi) lending platform, with funding from USD Coin (USDC) issuer Circle, CoinShares, and other undisclosed Solana-based businesses.
Maple Solana’s mission is to “bring Maple’s on-chain capital-market infrastructure to scale the Solana ecosystem” and handle the network’s finance needs.
Maple anticipates a surge in activity on Solana as a result of the shift, with Quinn Barry, the head of Maple Solana, stating:
Over the next three months, we expect to bring over £236 million of liquidity to Solana.
Barry tweeted that Maple plans to establish a permissioned pool by the end of 2022, allowing protocols, decentralised autonomous organisations (DAOs), and real-world borrowers to borrow funds.
On Maple Solana, X-Margin is the first pool delegate. The pool has £26.7 million in cash on hand, with no active loans and no interest-bearing deposits. The pool is expected to control £236 million by the end of 2022, according to X-Margin.
Maple’s platform may entice institutions because, like a few DeFi lenders, it complies with mandated Know Your Customer/Anti-Money Laundering (KYC/AML) criteria.
Celsius, for example, requires users to submit KYC information and, since February, has been pooling delegates on Maple’s Ethereum app. In January, Aave, a lending protocol, released its permissioned Aave Arc pool, which requires users to provide KYC information.