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Solana To Get Uncollateralized Borrowings Finally

Bitcoinist

Bitcoin News / Bitcoinist 139 Views

Institutional capital markets based on Maple Finance Blockchain Technologies have extended support to the Solana blockchain. It has utilised a $45 million fund that shall be used to encourage growth within the Solana (SOL) ecosystem.

The advancement fund launched by Maple Finance is in partnership with the DeFi X-Margin lending platform, with the capital provided by stablecoin USD Coin (USDC) issuer, asset manager digital CoinShares and other projects based on the Solana ecosystem.

Maple Finance provides under collateralized loans to institutional borrowers on Ethereum, with the new expansion Solana too will be able to receive these borrowings.

Through a blog post, Maple Finance stated that it has “originated over $1.2 billion in loans and currently count over $900 million in TVL to the platform.”

Maple Solana Is Now Live!

The biggest takeaway from the expansion is that uncollateralized borrowing can finally happen in the Solana ecosystem, which SOL previously did not have.

Maple Finance’s goal in this expansion is to address the financial needs of the network. It is primarily to “bring Maple’s on-chain capital-market infrastructure to scale the Solana ecosystem”.

Now that the Maple Solana has gone live, the $45 million funds are deployed with a vision to have a $300 million pool by the end of this year.

Sidney Powell, Co-founder and chief executive officer of Maple Finance stated,

Building the first multi-chain capital market solution has and will continue to attract high-quality lenders and borrowers, create unprecedented growth opportunities for innovators building on Solana, and enable the entire industry to thrive.

Maple had timed themselves three months as they expect $300 million of liquidity to SOL. The Head of Maple Solana Quinn Barry quoted,

We will soon welcome another credit-expert to the platform, and share more details on how liquidity protocols are already using Maple’s infrastructure as a launchpad onto Solana

Maple Finance is not only the first-ever multi-chain capital solution but also the first-ever platform that offers uncollateralized loans to SOL.

Related Reading | Decentralized Copy Trading Platform FNDZ To Bridge The Gap Of DeFi Mass Adoption

Maple Also Plans On Launching Liquidity Pools For DAO

In a recent tweet, Quinn Barry stated that Maple would launch a liquidity pool for DAO, alongside protocols and also ensure that DAOs and real-world entities could start borrowing funds by the end of this year itself.

Other plans include issuing the SYRUP governance token in 2022, this token is similar to the MPL token that exists on Ethereum.

X-Margin is the first pool delegate who shall be launching a lending business on SOL. X-Margin is tasked with the responsibility of assessing borrowers, credit scoring addition, issuing, underwriting along with managing interest and payments of these loans.

Maple’s platform at the moment complies with the Know Your Customer/Anti-Money Laundering (KYC/AML) standards, which makes it one of the DeFi lending protocols that adhere to the same. Other platforms such as Celsius and Aave Arc Pool require KYC documents.

Related Reading | Paxo Finance Aims to Bring Millions of Users to DeFi with Unique Under-Collateralized Loan Protocol

Solana
Solana just touched the $100 price mark on the four-hour chart. Image Source: SOL/USD on TradingView      
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