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.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the On the Margin newsletter.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Salt Lake City, UT

MON - TUES, OCT. 7 - 8, 2024

Blockworks and Bankless in collaboration with buidlbox are excited to announce the second installment of the Permissionless Hackathon – taking place October 7-8 in Salt Lake City, Utah. We’ve partnered with buidlbox to bring together the brightest minds in crypto for […]

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

Research Report Templates.png

Research

ZKPs enable efficient offchain transaction processing and validation, resulting in increased throughput and reduced fees. Solana's ZK Compression leverages ZKPs to minimize onchain storage costs, while Sui's zkLogin streamlines user onboarding by replacing complex key management with familiar OAuth credentials.

article-image

Plus, is Polymarket this cycle’s breakthrough mainstream app?

article-image

The crypto asset manager lowered its planned fee from 0.25% to 0.15%, undercutting its competitors

article-image

Plus, a look at planned ETH ETF fees and how they differ from their BTC counterparts

article-image

North Korea suspected in breach of Indian exchange’s multisig wallet

article-image

Plus, Sanctum’s CLOUD token has officially launched — but not without problems

article-image

It’s not yet clear whether Donald Trump is pumping bitcoin. But an unofficial memecoin is still seeing benefit.