Coinspeaker Maple Finance Launches Syrup to Kickstart New Era in Institutional Lending
Maple Finance, a decentralized finance (DeFi) institution and lending platform, has launched a new protocol called Syrup. The new protocol, which was introduced on May 28, will focus on delivering institutional yield to the DeFi sector, marking a significant turnaround since Maple’s uneventful recent past which saw the platform plunged into financial crisis in the aftermath of FTX-Alameda collapse.
Maple’s Syrup Launches amid Criticism Over Yields Approach
Per the company’s press release, Syrup will provide users with permissionless access to institutional lending. That is, users who deposit Circle’s USD Coin (USDC) into the platform can acquire syrupUSDC liquidity pool (LP) tokens with which they may then earn yields.
The firm also noted that the yields will be sourced from fully collateralized loans extended to major crypto institutions. However, this approach has sparked scepticism from community members who still have a fresh memory of the defaults linked to the FTX-Alameda saga.
The introduction of Syrup follows Maple Finance’s decision to cut ties with Orthogonal Trading – an entity linked with FTX – in December 2022. Orthogonal Trading had defaulted on $36 million in loans at the time. This not only caused substantial losses for lenders but also negatively impacted the integrity of Maple’s lending pools.
Mixed Reactions Trail Launch
Meanwhile, the launch of Syrup has sparked mixed reactions from the DeFi community. While some users are hyped about the potential benefits, others are not as trusting. They remain extremely cautious due to the lingering FTX-Alameda issues.
As part of the latest announcement, Maple Finance also introduced the Syrup (SYRUP) token, which allows holders to stake in and participate in the ecosystem. According to the firm, the transition allows MPL holders to exchange their tokens for SYRUP on a one-to-one basis without dilution.
However, these sceptics see no justification for launching the new SYRUP token. They also do not see a need to migrate from Maple’s existing MPL token.
One community member clearly captured the widespread concern in an X statement:
“A new protocol powered by Maple has been introduced, but why do we need a new token and the migration of $MPL to this new token? Why not simply use $MPL to power the new protocol?”
In its defence, however, the associated protocol Syrup.fi has addressed the concerns. It says that SYRUP is “simply the name of the MPLv2 token”.
Maple Finance has scheduled a webinar on June 4 at 7:00 pm. UTC to discuss the details of the Syrup launch. The session is expected to address lingering questions and provide insights into the new protocol’s operational mechanics.
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Maple Finance Launches Syrup to Kickstart New Era in Institutional Lending