Update from Maple and Delegates regarding Alameda and FTX
There are no loans to Alameda from any of the pools on Maple and the exposure to FTX, FTT amongst active borrowers is limited. The top priority of Maple and Pool Delegates during periods of volatility is to protect Lender capital and continue to operate prudently, diligently and professionally. This article shares the strength of the loan book and provides further detail on status and actions taken, along with direct and indirect exposures to provide further comfort to Lenders.
No direct exposure
There are no loans to Alameda from any of the pools on Maple. All loans to Alameda were closed in September 2022. Delegates hold themselves to the highest credit standards in order to provide competitive risk-adjusted returns to Lenders, and these practices have returned 99% of all funds to Lenders across the protocol through a tumultuous 6 month period. These standards led Orthogonal to close its single-borrower pool and offboard Alameda as a borrower this summer; M11 Credit to offboard Alameda on 4 September; and Credora to offboard in August after just one loan.
Delegates pursue a conservative approach and only do business with strong, reputable borrowers. Pool Delegates have stringent criteria and insist that financials and company operations meet minimum standards. Delegates actively manage their loan books by receiving financials, using on-chain tools and reducing credit lines with firms that do not meet standards.
All loans are visible on the WebApp: https://app.maple.finance/
Delegates will continue proactive updates on Twitter: Orthogonal Credit: https://twitter.com/OrthoCredit/status/1590327661108559872?s=20&t=QdVfu-e40sc_HmfCtbDViA
M11 Credit: https://twitter.com/M11Credit/status/1590130069078388736?s=20&t=QdVfu-e40sc_HmfCtbDViA
Credora: https://twitter.com/credoraplatform/status/1590398470598582272?s=46&t=emBJfHi-evow3DDxk7_vig
Limited indirect exposure
Borrower exposure to FTX, FTT is limited.
There are 37 active loans totalling $227 million across Maple to borrowers Amber Group, Auros, DV Trading, Flow Traders, Folkvang, Nibbio, Portofino Technologies, Orthogonal Trading, Reliz Ltd, Symbolic Capital, Wincent and Wintermute.
In addition to current D/E ratios, AuM and exchange positions, Pool Delegates have visibility into borrowers’ current FTT holdings and hedged positions; use of FTT as collateral; and amount of assets held with FTX. Based on information provided to Delegates and use of on-chain tools, we believe borrowers have sufficient equity cushions to withstand funds being lost to FTX, continue profiting from volatile markets and ultimately service their loans on Maple as expected.
Delegates will continue active conversations with all counterparties on their asset composition and proactively keep customers up to date.
*USD value of the loans outstanding is based upon the wETH price as of 11/9 which is $1200.
Track record
Maple’s pools have issued $1.9 billion loans to date, and 99% of funds have returned to Lenders. Pool Delegates navigated LUNA/UST and the spring/summer volatility and the out performance across lending pools on Maple proves Delegates’ prudent risk-management, underwriting expertise and professionalism. As we build more transparent, efficient capital markets on-chain we will continue to promote accountability and high standards.
Related articles
Q1 2022 Maple Treasury Report
In the first quarter of 2022 Maple turned a profit for the first time, driven by increased loan volumes and revenue, exceeding the previous 3 quarters combined.
$1BN loans issued on Maple in just 10 months
Achieved in just 10 months, this is a key milestone for Maple, our partners, the DeFi industry and digital economy at large.
Bringing Maple Solana to Mainnet
In early April, Maple will be the first protocol to bring undercollateralized lending to the Solana ecosystem. That’s just the beginning. We plan to originate $1B in loans on Maple Solana by the end of 2022.
