Maple Finance’s M11 Pool Investors Can Expect Full Debt Repayment

After missing at least two loan repayments, market maker Auros has reached a resolution with creditor M11 to make liquidity providers on Maple whole


Source: Shutterstock / WindAwake, modified by Blockworks


Embattled crypto market-making firm Auros Global has reached a resolution with its primary creditor to fully repay its debt following hardship brought about by FTX’s collapse last year.

The firm’s liquidity woes were one factor leading DeFi credit platform Maple Finance to rethink how it will handle bad loans going forward.

M11 Credit, the credit solutions arm of blockchain investment company M11 Group, said in a statement Wednesday, that Auros intends to make its liquidity providers on Maple Finance whole “over time.”

Around 55% of Auros’ debt pertaining to both the M11 Credit Permissioned USDC and M11 Credit wETH pools on Maple has been paid back, while a further 40% of the outstanding debt has been reissued for a maximum of nine months.

Roughly 5% of the outstanding debt has been reissued for a maximum of 90 days at 0% interest as a short-term facility, the statement reads.

“The above outcome is the result of months of productive discussions with Auros,” M11 said.
“The M11 Credit team were in constant communication and negotiations with Auros and other creditors as they worked to strengthen their balance sheet.”

Auros missed two of its loan repayments to M11 on Nov. 10 due to funds being trapped on FTX’s platform, which sapped liquidity and forced the company into provisional liquidation. 

The “light touch” liquidation, implemented on Nov. 24, allowed the firm to restructure its debt under the supervision of a court-approved advisory firm.

In a bid to shield the interest of all liquidity providers in the affected M11 Credit Pools, M11 took measures a month later to preemptively impair all of Auros’ loans and reduce the market maker’s exposure to Maple.

The credit solutions arm also said it was “unfortunate” the same outcome had not been reached with defunct digital asset trading firm Orthogonal Trading, which also entered into provision liquidation following November’s market woes. 

M11 Credit is currently engaged in the recovery of $36 million in unpaid debt on Maple from the trading firm. Auros and M11 did not immediately respond to requests for comment.

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