Maple Finance ($MPL) and the Future of DeFi
Is CeDeFi the Next Big Thing in Crypto?
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They were considered geniuses of their time.
At the peak of their success, they were considered untouchable, and the riches they made led to much attention (and jealousy) from other investors in the space. But the market is a tempestuous mistress: it giveth and it taketh. When the tide rolled back, they were revealed for what they were: over-leveraged speculators who flew too close to the sun.
If you are a “crypto native”, you would be forgiven for thinking that the above is referring to Three Arrows Capital - the multi-billion dollar crypto hedge fund whose appetite for leverage led to bankruptcies and hundreds of millions lost from multiple lending desks, as well as a broader market implosion.
But those who remember the infamous LTCM saga will tell you it’s the same story, told over and over again in the history of financial markets: the story of greed, leverage and the systemic risks they cause in opaque markets.
Given the recent events, discussions are now surfacing about whether DeFi is the answer to an opaque credit market rife with moral hazard. The poster child for this discussion is Maple Finance: the largest under-collateralized lending protocol in DeFi facilitating institutional lending.
As a follow-up to our interview with Maple co-founder Sidney Powell (available on YouTube, Spotify and Apple), we will examine Maple Finance’s performance, market opportunity as well as the utility of $MPL, its native token below.
(As a disclaimer, Jason has a small exposure to $MPL from providing liquidity on the platform as a lender).
Contents:
Maple Finance Team
How Maple Works
Competitive Landscape
$MPL Tokenomics
Interactive $MPL Model
Risks to Maple Finance
Catalysts and Roadmap