Maple Finance and Alameda Research have just launched a new lending pool for CoinShares, Abra, and Ascendex with loans from Alameda Research.
?CoinShares is the world’s first dollar-backed stablecoin built on the MakerDao protocol. ? Abra is a cryptocurrency wallet and exchange app for both bitcoin and ether.
? Ascendex is a tokenized U.S. dollar that doesn’t trade on any public exchanges.
A lending pool has been launched for CoinShares, Abra, and Ascendex by Maple Finance and Alameda Research, a DeFi project.
Alameda Research, founded in 2017 by FTX’s Sam Bankman-Fried, will use the new lending vehicle, built by blockchain capital marketplace Maple Finance, to lend crypto to accredited non-U.S. institutions around the world.
Readers who are unfamiliar with syndicated loans should know that they are loans provided by several lenders, coordinated by a bank.Since crypto is a decentralized space, there is no “middleman,” as readers will know.
Since Alameda Research is the sole borrower in the pool, the trading firm will benefit from its profile, and as more lenders throw their hats into the ring, it will be able to get more competitive pricing in the future.
Over the next year, Alameda plans to increase this figure by $1 billion to support its new platform.
In contrast to more traditional debt capital markets, DeFi allows Alameda to expand this figure by borrowing more on-chain at any time without having to deal with months of bureaucracy for one-off transactions.
CoinShares, Abra, and AscendEX are some of the first lenders contributing.
Institutional Investors Have a New Way to Invest in Crypto with MakerDAO’s Latest Innovation – Maple Finance
With the launch of Maple Finance, institutional crypto investors now have access to undercollateralized lending. It rolled out its first $17 million pool, which included Alameda and CoinShares.
Maple Finance has an advantage over other lending protocols in that borrowers do not need to provide more than 100 percent of collateral to borrow an asset.
For MakerDAO, for instance, users must deposit $1.50 in Ethereum for every $1 borrowed, while with Maple Finance, terms between borrowers and “pool delegates” are determined by the amount of collateral and the creditworthiness of the firm.
Although nuanced, undercollateralized loans are a key component of DeFi infrastructure. And as the sector continues to pick up steam and attract more institutions, undercollateralized lending could play a key role in further growth.
Likewise, other blockchains with smart contract functionality, such as Solana, Avalanche, and Binance Smart Chain, have grown enormously in popularity.
Various projects on the Ethereum network, including mainstays such as Curve, MakerDAO, Aave, and Uniswap, are currently locked up for a total of $171.84 billion, according to DeFi Llama.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
