Summary

1. Early access and growth. Opening up Syrup first early sign ups with access codes. Look out on socials and in the Telegram group as we might drop some codes there as well.
2. AMM liquidity. The first priority will be to build up initial AMM liquidity, allowing users to swap in and out of pools and opening up avenues to LP tokens as collateral and more.
3. Distribution and assets. syrupUSDC should be available in as many apps and protocols as possible to increase the ease of access for users. Additional assets will be launched as well, with especially USDT expected to follow shortly after launch.
4. Broader integrations and utility. Enable Syrup LP tokens as collateral, which unlocks other use cases such as lending, borrowing, looping, yield splitting and more!

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Introduction

Syrup brings real world yield to DeFi, generated by the Secured Lending engine of Maple. It brings sustainable and institutional yield and combines it with the flexibility and composability that makes DeFi so powerful.

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Phase (1): Early Access Launch and Fast Initial Growth

On June 25th Syrup will open up for early access registrants (if you haven't already - you can register on syrup.fi). Early participants will be rewarded for long-term participation in Syrup with more details about the mechanics of that being released in the Drips article later this week.

After a few weeks of early access (keep your eyes out for limited access codes!), Syrup will open up broadly for non-US permissionless capital. The focus will be on initial growth and getting to scale as soon as possible, which in turn will unlock all the exciting DeFi potential that Syrup brings.

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Phase (2): Deep AMM Liquidity

Post launch, the first priority will be to establish deep liquidity via secondary markets. While Maple’s Secured Lending pools have serviced withdrawals in <30 hours on average since inception, liquidity may ultimately depend on the duration of the underlying loan book.

Enabling deep liquidity via an AMM will allow users to get instant liquidity for syrupUSDC. Our first integration will be a syrupUSDC Balancer pool, with the syrupUSDC/sDAI pair that would allow for swapping on secondary markets. Liquidity providers will earn further boosts to their drips as well!

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Phase (3): Distribution and Additional Assets

syrupUSDC should be widely available across DeFi and web3 applications. Syrup will pursue partnerships and integrations with apps and protocols with large user bases that are looking for yield. For more strategic distribution partners we might use incentive mechanisms as well to increase the usage and growth of the Syrup protocol.

Out of the gate, Syrup is launching with support for USDC deposits - and targeting a yield of ~15% for lenders. While the goal will be to develop integrations for syrupUSDC through the broader DeFi ecosystem, the team also plans to expand Syrup with additional assets in the near future.

There are billions of dollars of other stable coins, primarily USDT, with few avenues to earn a strong risk adjusted yield, and we envision Syrup as a solution for this over time. From syrupUSDT to syrupETH, Syrup will be a place for DeFi native capital to earn a fantastic risk-adjusted yield on a variety of digital assets.

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Phase (4): Broader Integrations and Utility

We’re particularly excited about how Syrup pool tokens like syrupUSDC can be used throughout DeFi, in a similar way to Aave’s aTokens or Compound’s cTokens. Early and obvious candidates would be getting DAO approval to list syrupUSDC as eligible assets on lending protocols like Morpho and Aave. Holders of syrupUSDC could lend to these protocols for extra yield or as eligible collateral to borrow from. The latter would enable a looping strategy commonly seen in DeFi where users could reinvest proceeds back into Syrup. Yield bearing collateral is a very appealing aspect of fungible crypto assets and syrupUSDC will be no different.

Further down the road there are ideas for more exotic integrations for Syrup pool tokens. The team plans to create a Pendle pool for syrupUSDC where users could speculate on drips by buying YT (yield tokens) while PT (principal tokens) would offer the holder a strong and consistent yield that underpins the Maple Finance lending engine.

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Conclusion

Syrup is a big leap forward for Maple on its mission to bring transparency and performance to the world of digital asset lending. As we scale up Syrup we will unlock more and more distribution and use cases of the syrupUSDC and future LP tokens, bringing benefit to everyone.

We are excited to share this journey with all Syrup users and are looking forward to making institutional yield available for (almost) everyone!

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