Maple enables crypto native institutions to build sustainable businesses by accessing growth capital from the DeFi ecosystem. Many impressive businesses that have emerged in the crypto economy are highly profitable yet largely ignored by traditional finance. Maple's decentralized marketplace enables these institutions to take capital-efficient loans from Liquidity Pools. For the first time, the DeFi ecosystem will be able to support the top tier institutions in the space and participate in their long term success.
What is a Liquidity Provider?
Anyone can be a Liquidity Provider on Maple by depositing capital to a Liquidity Pool. This capital is used to fund loans to crypto institutions in exchange for yield. The capital denomination will vary depending on the Liquidity Pool- the first Liquidity Pool will require USDC to participate. As institutional loans on Maple are undercollateralized, Liquidity Providers bear credit risk should a borrower default on their loan. In the event of liquidation and collateral shortfall, the protocol will first liquidate staked tokens from the Pool Delegate and Stakers in order to cover the difference between the value of the collateral and the loan balance.
At launch, being a Liquidity Provider and participating in the Liquidity Mining program means depositing USDC on Maple to the Liquidity Pool for a six month lockup period. You do not need MPL to participate. As a Liquidity Provider in this pool, you will earn a yield of 10-12% USDC and earn additional MPL rewards. The additional MPL rewards are distributed as part of the Maple Liquidity Mining program.
What is Liquidity Mining?
The Maple Liquidity Mining program distributes MPL tokens to Liquidity Providers who participate in the launch pool. The Liquidity Providers are rewarded for being early users for depositing USDC on the platform to fund loans. The mining rewards rate will be 20k MPL distributed for each $1m funded in the pool with USDC deposits locked for 6 months. MPL rewards can be claimed via smart contract on a block-by-block basis.
What is Staking?
Stakers on Maple provide a reserve of first-loss capital to Liquidity Pools in exchange for yield. Pool Delegates and Maple Token Holders stake by first depositing a combination of MPL and stablecoins into the MPL:USDC Balancer Pool in exchange for Balancer Pool Tokens (BPT). Then they select which pools to stake their BPTs to begin collecting Ongoing Fees. To align Pool Delegate incentives with those of Liquidity Providers and Stakers, they are required to stake in any Liquidity Pool they create, as this requires them to take a riskier position in the event of any defaults.
In the event of a default, any outstanding amount owed after the collateral liquidation can be claimed from the reserve by redeeming staked BPTs on Balancer for stablecoin which is then distributed to the Liquidity Pool.
Framework Ventures and Polychain Capital will serve as Stakers providing the reserve for the first Liquidity Pool. The ability to Stake will become available to the broader DeFi community four to eight weeks after launch as more loans are funded.
What can I do with MPL tokens earned from Liquidity Mining?
MPL is the native Maple governance token. It enables holders to participate by Staking cover to Liquidity Pools for a portion of fees. MPL Holders are currently able to vote on governance proposals published on the Maple Discord. There are also Balancer and Uniswap pools available as secondary liquidity markets.
How to participate in Liquidity Mining
Before May 21
Prepare USDC in your Metamask wallet and ETH for gas payments. You will not need MPL tokens to participate in the Liquidity Mining program.
On May 21
Maple's first Liquidity Pool will open to the DeFi community to deposit USDC on May 21 at 5 pm EST. The total pool will be $17m in size with a portion allocated for broader DeFi participation. This pool will fund loans to an exclusive list of top crypto institutions including Alameda Research, Wintermute, and Amber Group. The Liquidity Pool will remain open for deposits until it reaches the $17m cap. Deposits will be locked for a six month period in order to fund consecutive tranches of institutional loans on Maple. There is no minimum deposit amount to participate.
Participants depositing USDC will receive USDC yield of 10-12% as a Liquidity Provider as well as additional MPL rewards. MPL will be mined at a rate of 20,000 MPL for every 1,000,000 in USDC deposited to the protocol for the 6 month epoch.
- Head to the Maple webapp
- Deposit USDC as a Liquidity Provider to earn Maple Pool Tokens (MPTs)
- To earn MPL rewards, you must deposit your MPTs to the Liquidity Mining contract
- You will be able to claim your USDC interest and mined MPL tokens from the webapp
This video guide to Liquidity Mining provides step by step instructions on how to use the Maple webapp.
By being a Liquidity Provider on Maple, you facilitate undercollateralized loans to a diversified pool of top crypto institutional players. This grants them access to growth capital required to expand their businesses at the rate demanded by the markets. As a Liquidity Provider, you'll have access to sustainable yield from a diversified portfolio of borrowers.
- Maple: A Sustainable Solution for Liquidity Providers
- Introducing MPL: Maple's Governance Token
- Maple FAQ Gitbook
- Github (includes audit reports)
- First cohort of Borrowers