As Maple prepares for its mainnet launch, we sat down to talk with the launch Pool Delegate, Orthogonal Trading. Managing Partner Joshua Green shared the team's criteria for selecting borrowers to fund and why they wanted to become a Pool Delegate on Maple. Maple offers a set-and-forget solution for Liquidity Providers - Pool Delegates like Orthogonal Trading complete the due diligence and agree terms with borrowers, and Liquidity Providers benefit by earning a stable yield and MPL rewards.
Pool Delegates play a crucial role in the Maple Protocol by managing liquidity pools. There is a single Pool Delegate for each Liquidity Pool. The Pool Delegate is responsible for negotiating loan terms with borrowers, performing diligence, and liquidating collateral in the event of a default. This gives Liquidity Providers peace of mind that their funds are in good hands. In order to align incentives with Liquidity Providers, Pool Delegates are also required to stake on Liquidity Pools that they manage to provide first-loss capital in case of default.
Liquidity Providers have full discretion over which Liquidity Pools they deposit funds into and may be inclined to select the Pools of experience fund managers. Most Pool Delegates will likely have substantial relevant experience in areas like asset management, assessing fixed income portfolios, and evaluating credit risk.
Orthogonal Trading will be the Pool Delegate for the initial $15M Liquidity Pool and will fund loans to an exclusive group of institutional borrowers. We asked Joshua to provide some insights on his role as Pool Delegate in the Maple ecosystem.
Tell me about yourself. How did you get into DeFi?
My background is a blend of traditional financial markets and crypto native experience. Prior to joining crypto full-time as Head of Trading for Digital Asset Capital Management in February 2018, I was a Macro Portfolio Manager in a proprietary trading role at a large Australian financial institution. After approximately 2 years at DACM, l left to set up Orthogonal Trading with my Partners who also have backgrounds trading derivatives at firms such as Morgan Stanley and Bluecrest Capital Management. I have been involved with DeFi since my time at DACM, where we seeded some of the well known DeFi protocols we use know and have been actively participating in it since the launch of Compound.
Orthogonal Trading is a multi-strategy cryptocurrency trading firm with a focus on quantitative strategies. We are particularly active in options trading as a top 10 volume participant on Deribit, DeFi markets and other forms of market neutral arbitrage and systematic strategies.
Why did you want to be a Pool Delegate on Maple?
We are a huge fan of what the team at Maple are building. As a trading firm - whose partners all have a background in traditional financial markets - we are very focused on maximizing our balance sheet usage. We think Maple Finance will be great help in this and are excited to be a Pool Delegate to support it in its early stages via our intellectual and monetary capital - we look forward to being a borrower down the line as well.
The market for fixed income opportunities in DeFi is already huge and we expect it to continue growing. This model demonstrates the opportunity for Pool Delegates to build real businesses on top of Maple. Maple is a platform for fund managers like Orthogonal to establish new funds and expand their business.
What are you looking for from Borrowers?
In this initial pool we feel it is critical that all goes smoothly. As such we are generally conservative in our borrowers, looking for household names that we either know personally or who have a top tier reputation in the crypto space. We want borrowers who are always at least partially liquid such that they are able to meet repayment obligations, communicative, and leverage a sensible amount.
Maple's inaugural borrower pool was oversubscribed at $15M and including top-tier institutions like Alameda Research, Framework Ventures, and Wintermute.
What communications do you plan to have with LPs? Updates in Discord group or announcements in Telegram?
We will try to walk the line between communicating too much and too little, we think Telegram is an appropriate method of communication with another back up method as well.
How do you see your involvement with Maple changing over the next year?
We are committed to this initial delegate role, however we expect that most other interactions with Maple will be from the borrowing side as we look to continue to grow our balance sheet.
Maple: On Mainnet Soon
We're incredibly excited that Maple will be live soon. Orthogonal Trading will be the first Pool Delegate at launch and we have a great pipeline of high-quality fund managers who are planning to launch their own Liquidity Pools on Maple in the coming months. If you want to keep up to date on Maple's progress and future Liquidity Pools, follow us on Twitter and join our Discord.
About Orthogonal Trading
Orthogonal Trading is a multi-strategy digital asset trading fund with a global presence across crypcurrency markets. Learn more about Orthogonal Trading by visiting their website and following them on Twitter.