Maple Finance Brings TradFi to DeFi With Treasury Management Pool

Interested lenders must pass a 15-minute know-your-customer and anti-money laundering onboarding process

article-image

Nik Waller Productions/Shutterstock modified by Blockworks

share

Maple Finance, an on-chain lending and borrowing network, has announced the introduction of a treasury management solution designed specifically for DAO treasuries. 

Short-term Treasury yields have steadily increased over the past few years, currently sitting at roughly 5%. By contrast, DeFi yields have stayed relatively low, Maple Finance CEO Sid Powell told Blockworks in an interview.

The latest pool launched by Maple intends to ensure that deposited funds are sent to a special-purpose vehicle (SPV) which is only permitted to buy US Treasurys. 

“Funds are off-ramped through Coinbase Prime, it will purchase treasuries from a regulated broker and then pledge them as collateral,” Powell said. 

To certify that lender funds are secure, the platform places a tri-party agreement between the Maple Foundation, the borrower and the broker into effect. 

Should a borrower refuse to repay their loan, the Maple Foundation will contact the broker and declare the loan in default. By doing this, they gain access to the brokerage account and its T-bills so that it can send the money on-chain to repay the loan. 

“So if you’re depositor in the pool, you’ve got a loan paying you about 4% and if that borrower of the loan defaults, Maple can sell and repossess these treasuries from the broker, sell them and pay back your loan…so overall it makes for a relatively low-risk proposition,” Powell said.

Maple Finance said it will open the pool treasury to all non-US accredited investors. Those who wish to deposit loans must pass a 15-minute know-your-customer and anti-money laundering onboarding process. 

“We’re going to check: Are you a foundation, do you have articles of incorporation as a foundation, can you disclose your members or board or directors?” he confirmed.

Powell noted that there will also be stipulations on what SPVs can do with borrowed loans.

“We’re not going to buy 10-year T-bills because nobody wants a repeat of Silicon Valley Bank. Instead, we’re just going to buy one or two-month T-bills,” he said. 

Lenders will also be able to monitor any treasury holdings that are secured with a custodian in real time. The company acknowledged that next-day withdrawals will also be possible.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Tags

Upcoming Events

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Avail.jpg

Research

Data publishing costs have historically been a bottleneck for rollups, and as more rollups launch, interoperability will continue to be a major challenge. Avail presents a potential solution to rollup fragmentation through its three products: Avail DA, Nexus, and Fusion, which together aim to unify the web3 experience.

article-image

Short-term “sell the news” reactions could follow new BTC price peaks months from now, industry watchers say — but only if history repeats itself

article-image

While crypto fundraising remains well off its bull market highs, Q1 data shows capital is returning to the space

article-image

Billed as a better BRC-20 fungible token standard, Bitcoin Runes launches tomorrow

article-image

Bitcoin miners need to explore unconventional energy avenues or be buried by the financial realities created by this halving

article-image

BlackRock’s iShares Bitcoin Trust continues to see daily positive net flows, though its inflow total for a single day hit a new low Wednesday

article-image

Binance is making moves, from receiving a new license in Dubai to switching its SAFU fund to USDC