Maple Finance says lenders may have to wait for repayments from borrowers

Lending platform Maple Finance has become the latest company to face liquidity problems.

The platform published a update on its website in an article titled “Liquidity Management for Lenders and Borrowers”, saying, “There may be instances where there is not enough liquidity in the pools.”

Liquidity issues began this week, although Maple Finance says that as loans mature over the coming weeks, an increase in available capital in the pools due to borrower repayments will allow lenders to proceed. to withdrawals.

He also said that the ability of lenders to earn interest and rewards from the Maple Token (MPL) would not be affected.

Once all withdrawal requests have been processed, delegates in the pool will resume issuing loans. Orthogonal Trading, a cryptocurrency hedge fund, has recognized that there is a $10 million loan to Babel Finance from the Orthogonal USD coin pool on Maple.

Babel halted withdrawals and issued a debt repayment agreement.

The crypto world has come under severe pressure with the recent stock market crash. Many platforms are facing liquidity pressures, pushing many of them to the brink of survival. Even mining companies are struggling, with Canadian firm Bitfarms selling 3,000 BTC to improve liquidity.

Decentralized Finance Protocol (DeFi) Bancor also suspended impermanent loss protection, citing hostile market conditions. It was one of the main features of the platform.

MakerDAO suspended DAI repositories, citing the same reason. And rumor has it that Three Arrows Capital is facing insolvency.

It will take time and a new strategy for companies to recompose and manage the market downturn without further damage.

Such developments are part of the crypto market, although the strong growth in recent years has certainly magnified the setbacks.

Disclaimer

All information contained on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at their own risk.

Comments are closed.