Maple is an institutional capital marketplace built on Ethereum, which has had $57M in total liquidity deposited since its launch in May. MPL token holders will now be able to Stake their tokens to Maple's lending pools to earn yield and MPL rewards.
Maple allows reputable crypto institutions to borrow undercollateralized from lending pools funded by the crypto ecosystem. Borrowers undergo a comprehensive diligence process with Pool Delegates prior to their loans being funded. Pool Delegates are funds and industry professionals with credit experience who oversee the lending pools on Maple. Maple's two Pool Delegates are Orthogonal Trading and Maven 11 Capital. Lenders can deposit USDC and earn USDC yield plus MPL tokens via Liquidity Mining.
Introducing Maple Staking
Staking Pool Cover provides a subordinated reserve of capital for each lending pool to be used to recoup credit losses. Stakers earn one-tenth of the interest payments of the lending pool they stake. To participate, MPL holders deposit a 50-50 split of MPL and USDC to the MPL:USDC Balancer Pool in exchange for Balancer Pool Tokens (BPTs). These tokens must then be staked to either the Orthogonal Trading pool or the Maven 11 pool on Maple to begin collecting USDC yield and MPL tokens.
In the event of default, borrower collateral is liquidated via AMM. If there is collateral shortfall after liquidation, the stakers in the pool will be liquidated on a pro rata basis in order to cover the remaining pool losses. To align Pool Delegate incentives with those of lenders and stakers, they are required to stake in any lending pool they create. Note that borrowers sign a Master Loan Agreement (NY law) during onboarding, therefore defaults are enforceable in court or via AAA.
How to participate in Staking
Starting July 22, both lending pools on Maple will be available for public staking. Stakers will begin earning their allocation of USDC yield and additional MPL token rewards. The USDC yield will be one-tenth of the interest in the lending pool staked. The staking period is set to 180 days and subject to a 10 day cool down period. There will be no cap to participation and therefore returns are subject to total volume staked in each pool.
Steps to Participate
1. Deposit both MPL and USDC to the MPL:USDC 50:50 Balancer Pool in exchange for Balancer Pool Tokens (BPTs).
IMPORTANT: While the best method is to deposit a combination of both MPL and USDC, there is an option to deposit only one asset. The difference between the two methods is price slippage as for the same dollar amount, you get a better value (more BPT on deposit, fewer required to withdraw) by doing multi-asset provision rather than single-asset. That is because single-asset always requires an implicit swap which impacts the pool's pricing.
2. Head to the Maple webapp and browse the two available lending pools. Once you have made your selection on which pool(s) you'd like to stake, click into the Pool Dashboard, connect your wallet, and scroll to the "Your Staking" section.
3. Click "Deposit" and specify how many BPTs you'd like to stake. Please note this transaction requires ETH for gas payment.
4. Once you have confirmed your staking, you will have Pool Cover Tokens (PCTs) which represent your share of the staking reserve. At this point, you will begin earning USDC yield. To earn MPL rewards, you must stake your PCTs in the MPL Rewards (Stakers) section. This requires an additional transaction to complete.