Cryptocurrency capital markets platform Maple Finance has extended support for the Solana blockchain and has deployed a $45 million fund to promote the growth of the ecosystem.
Maple Finance offers decentralized loans to institutions that borrow money on Ethereum (ETH) and now Solana (SOL). The project stated in an April 25 blog post that it has “originated over $1.2 billion in loans and is currently charging over $900 million in TVL to the platform.”
The Ecosystem Fund was launched in partnership with decentralized finance (DeFi) lending platform X-Margin, with funding provided by USD Coin (USDC) issuer Circle, an asset manager CoinShares digital currency and several unnamed projects derived from Solana.
Maple Finance’s goal for the Solana branch (Maple Solana) is to “bring Maple’s online capital markets infrastructure to scale the Solana ecosystem” and address the need for online financing.
Maple Finance hopes the move will immediately spur intense activity on Solana, with Maple Solana head Quinn Barry pointing out that:
“Over the next three months, we expect to bring over $300 million in liquidity to Solana. We will soon welcome another credit specialist to the platform and share more details on how liquidity protocols have used Maple’s infrastructure as a launch pad for Solana.”
Providing a further update the next day, Barry also tweeted that Maple intends to launch a permissioned and permissioned pool of protocols, decentralized autonomous organizations (DAOs), and world-wide entities real world loans by the end of 2022.
Maple Solana will also issue a SYRUP governance token in 2022, similar to Maple’s MPL governance token on Ethereum.
X-Margin serves as the first group delegate on Maple Solana. Pool currently has a total cash balance of $34 million, but there are no active loans and unprofitable deposits. By the end of 2022, X-Margin expects the team to control $300 million.
Institutions may find Maple’s platform attractive because it adheres to mandatory customer/anti-money laundering (KYC-AML) standards, like only some DeFi lending protocols.
Platforms like Celsius (CEL) require users to submit KYC information and have been a team representative on Maple’s Ethereum app since February. AAVE Lending Protocol (AAVE) has launched the Aave Arc allowed pool January, requires users to submit KYC information.