Genesis, one of the largest lending and trading companies in the bitcoin and altcoin market, is contributing $75 million to Maple’s Solana (SOL)-based lending platform, increasing its decentralized finance (DeFi) footprint.
$75 million contribution from Genesis to Bitcoin and altcoin firm
Genesis’ contribution to Maple Solana will make it the first centralized trading firm to serve as a pool delegate for its Solana-based platform. As we reported on Kriptokoin.com, Maple launched its platform on Solana earlier this year and also operates a lending platform on Ethereum. Trading firms Wintermute and Amber Group plan to borrow from the pool operated by GGC International Limited. Of course, $75 million represents a small fraction of Genesis’ total loan book, which was over $44 billion as of March 2022. Through its subsidiary Genesis Capital, the firm provides tens of billions of dollars worth of crypto loans per month.
However, the contribution to Maple is increasingly driven by decentralized finance for large crypto firms to trade and lend funds – and thus It reflects that you are heading – towards the Solana network. Genesis said that running part of the credit book through the Maple infrastructure translates into lower operating costs, replacing traditional software tools with on-chain capabilities.
Maple users don’t miss out on interest payments
Unlike Wall Street, the barriers to joining the Maple ecosystem are not so onerous, allowing any “sophisticated” insurer to build a pool. Borrowers on the platform go through a due diligence process overseen by pool delegates to reduce their credit risk. “We expect many of the major CeFi (central) players in crypto to use Maple’s infrastructure to develop their on-chain lending business over the next year,” said Sid Powell, founder of Maple.
Despite the volatility of the crypto market, with the price of Bitcoin dropping more than 30 percent this year, Maple claims none of its borrowers have missed interest payments since its inception in May 2021. Meanwhile, Maple’s MPL token has surged from $26.25 to $27.70 at the time of writing.
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