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Lenders at Maple Finance will have to wait, the platform is short on money
Maple Finance issued an announcement warning investors that there may not be enough cash in the platform’s pools
Cryptocurrency lending provider Maple Finance began having liquidity problems this week. Although the platform itself says that lenders will be able to withdraw money from the liquidity pools in the coming weeks: borrowers will pay back loans, thereby increasing available capital.
Maple Finance also says that lenders’ ability to receive interest and rewards in the form of Maple tokens (MPLs) will not be affected.
Once all withdrawal requests have been processed, pool delegates will begin issuing loans again. Cryptocurrency hedge fund Orthogonal Trading acknowledged that suspended payments and withdrawals Babel Finance received a $10 million loan from Coin Pool Orthogonal USD on Maple.
The recent market crash has greatly impacted participants in the crypto industry. Many platforms have had to deal with a liquidity crisis, which can be fatal for most of them. Even mining companies are struggling, and Canadian company Bitfarms recently sold 3,000 BTC due to lack of liquidity.
Bancor’s Decentralized Finance Protocol (DeFi) has also suspended its customer protection feature for non-permanent losses, citing unfavorable market conditions. This was one of the key features of the platform.
The MakerDAO platform suspended deposits in DAI, citing the same reason. And Three Arrows Capital is rumored to be facing bankruptcy.
Companies will need time and strategy revisions to readjust and cope with the cryptocrisis.
Such events are typical of the crypto market, although the significant growth seen over the past few years certainly exacerbated the collapse.
