Maple is proud to announce a new lending pool will launch on July 7 with Maven 11 Capital as the Pool Delegate. Pool Delegates play a central role in Maple's institutional capital marketplace credit assessing and agreeing terms with borrowers.
The partnership with Maven 11 Capital is tremendously exciting because they are a blockchain and crypto assets investment team with over 10 years experience in traditional finance. Maven 11 are showing their commitment to the role with the addition of an advisor with a banking and credit background to their team. Below, Balder Bomans, Managing Partner at Maven 11, shares his insights on what excites them most about becoming part of the Maple ecosystem.
Maven 11 Capital
What was the "aha" moment which spurred Maven 11 to participate as a Pool Delegate for Maple Finance’s new lending pool?
As a fund we firmly believe in working alongside our founders instead of just providing capital. Being part of an ecosystem is the next step for investors that want to remain relevant in our industry. We do this on a case by case basis, because every ecosystem has different needs and our value-add can vary greatly depending on the stage of the venture. For Maple, the best way to become part of the ecosystem for us was by becoming a pool delegate.
Our team has experience in TradFi, I myself have traded equities/derivatives for over 8 years, so that puts us in a great position to take on this role. We understand the pain points for more institutionalized lenders and what they require to become active in DeFi; this is the void we aim to fill with Maple and our focus is on tailoring our pool these needs. As an indication of how committed we are to the pool delegate role, we have hired an external advisor with an extensive track record in the credit space to assist us with our pool delegate efforts.
We met the Maple Finance team over a year ago, and have been very impressed by their ideas around tackling unsecured lending and their speed of execution.
What do you hope to achieve through participation in the Maple Finance lending pool?
I hope to be able to help bootstrap Maple Finance to well over the 1 billion TVL mark. This would mean providing significant interest rate opportunities for lenders and providing borrowers with a means to meet their capital needs. As a result we would help DeFi as a whole grow and increase adoption. Apart from just volume and TVL metrics we also hope to onboard various new parties into the DeFi space. Examples of this can be lenders on the institutional side or borrowers that have not yet touched DeFi because they were unable to get a competitive offer from current solutions. Another personal goal of mine is to get a DAO to lend into our Maple Pool because it feels so native to the space.
What do you see as the biggest challenge to companies in the crypto space accessing institutional capital?
There are some bumps in the road for access to institutional capital. First, some institutional capital is not aware of the inner workings of our industry. This can make it difficult to do proper risk assessment. Second, compliance remains a bit of a hurdle for some institutions accessing the space. This is not an issue when deploying capital into Maple though. Third, is the fact that education remains key. The rise of stablecoins and the fact that they enable DeFi exposure without the volatility of other crypto assets is not yet widely known across institutions. The more education that takes place, the more that capital will become available for industry participants. This is very important as the high rates in DeFi are not only a reflection of risk, but also due to a shortage of available liquidity. Finally, we see that the collateralization requirements are high across the board. This is because reputation and off-chain data are difficult to leverage into a more accurate risk assessment.
How do you hope to use Maple Finance to expand the digital economy through credit creation?
I believe there is a lot of room for improvement in terms of capital efficiency in the lending space, especially for institutional capital. In most DeFi protocols you're unable to utilize your reputation or TradFi data points in order to get a more accurate credit risk assessment. Maple has pioneered a model where pool delegates review this and offer a better rate to borrowers.
Anything else you'd like to share?
We are aiming to open up our pool towards the wider DeFi community and invite all users that want to participate in the Maple ecosystem to join. Furthermore, we are definitely looking into assets other than USDC to use in a separate pool, so feel free to let us know what asset you would like to see added next.
Lending Pool Launching Soon
On July 7th, the second lending pool on Maple will be established with Maven 11 as the Pool Delegate. This pool will start at $22M and will continue to scale to meet borrower demand. On that day, institutional partners will begin funding the pool before whitelisted community members get access on July 9th. The remainder of the lending pool will open for public funding on July 10th. Participants will earn USDC yield and MPL rewards for lending USDC.