CDS Crypto News Maple Finance Suffers a $7M Loss of at the End of 2022
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Maple Finance Suffers a $7M Loss of at the End of 2022

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Maple Finance Suffers a $7M Loss of at the End of 2022

Maple Finance is a lending protocol that has offered more than $1.9 billion of corporate loans since it was launched in May 2021 as a decentralized credit market for institutional borrowers and lenders. However, the ripple effect of the prolonged bear market together with FTX collapse has affected borrowers’ appetite for its loan offering. At the end of 2022 Maple reported a net loss of about $7 million because of closing its lending pools on Solana.

The Reports of Maple Finance

Maple Finance

According to Maple’s Q4 2022 Treasury report, the lending protocol originated about $87 million across 23 new loans, which is down by 67% compared to its record of $262 million in the third quarter. Thereby, Maple closes the fourth quarter with total active liquidity of $58 million against $326 million in the beginning of the quarter. During the reporting period, Maple recorded revenues of $310,092, while its expenses were about $3.57 million.

Maple Finance records a loss of $7M at end of 2022

In addition, Maple suffered a loss of $151,933 from its M11 credit account as a result of the insolvency of Orthogonal Trading. As reported on December 5, Maple broke off its business relationship with Orthogonal Trading because the lending delegate was apparently insolvent, resulting in a projected loss of approximately $3 million. The Q4 report also showed that since Maple’s inception, its revenues were about $5 million, while its expenses stood at $12.1 million.

Thereby, Maple suffered a loss of roughly $7 million by the end of 2022. With a view to reducing operating costs, Maple stated that it will suspend all of Solana’s loan funds and reduce its quarterly expenses by approximately $2.4 million to $1.2 million. The lending protocol also appointed that it will work on increasing its runway with $6.1 million in its Treasury.

Source

www.cryptoslate.com

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The author is 28 year old student recently graduated from Celal Bayar University, Faculty of Medicine. Currently he works as a writer and translator for different platforms.

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