Celsius joins Maple to lend to crypto-institutions
Becoming the first CeFi firm to leverage Maple’s infrastructure and run a lending business on DeFi rails.
We are excited to welcome Celsius as the first CeFi institution to launch a crypto-lending business on Maple Finance. Leveraging Maple’s DeFi infrastructure, Celsius enters institutional DeFi as a pool delegate, lending from a $30m pool of wrapped ETH. With a strategy to provide capital to fast-growing crypto institutions, the team plans to scale the number of borrowers and loans issued in the coming year.
As the first centralized pool delegate to join Maple, Celsius will issue and manage undercollateralized loans to borrowers based on their profitability, balance sheet strength and credit history. Wintermute and Amber will use the capital to fund business operations and growth as well as benefit from the efficiency of not needing to lock up much-needed capital to secure the loans.
“We are excited to use Maple’s DeFi rails to provide efficient access to capital for blue-chip crypto institutions. Maple’s lending infrastructure means we can move quickly and securely into the space. Celsius will draw on its deep experience in underwriting and look forward to welcoming new borrowers this year and beyond,” says Alex Mashinsky, CEO of Celsius.
The pool delegate model is unique to Maple Finance. The model enables businesses and credit funds to operate lending businesses on DeFi rails. Maple’s tooling and smart contract kit includes everything required to give CeFi players an edge in running a sophisticated global lending business, including loan origination, loan management and real-time performance reporting.
Undercollateralized lending in crypto is still comparatively small, and mainly offered on CeFi platforms, representing less than 1% of the outstanding debt market. As DeFi continues to grow, traditional and crypto CeFi lenders will need safe and reliable tooling to quickly enter the market, which Maple provides.
Celsius joins BlockTower, Orthogonal Trading and Maven 11 Capital as Pool Delegates on Maple.There is also a dedicated pool for Alameda Research, who is the sole borrower. This is the first wrapped ETH pool on the Maple platform (to date liquidity has been provided in USDC only) and it demonstrates Maple’s commitment to growing use cases on its platform to meet customer demand.
“We’re proud to welcome Celsius as the first CeFi pool delegate to Maple. Their reputation in the space and underwriting expertise provides a vote of confidence in trusting Maple’s platform to enable institutional DeFi lending. Together we’ll execute on an aligned mission to provide capital to profitable, growth areas which traditional institutions are not yet serving” says Sidney Powell, CEO and Co-Founder of Maple Finance.
2022 looks to be a year of significant growth for Maple Finance. Launched in May 2021 the protocol quickly found product-market fit and has originated over $803 million in loans, and has over $6746 million in TVL at the time of publication. Maple aims to achieve $5 billion in loan volume by the end of the year through expanding use cases to meet customer demand and entering new markets.
You can view the pool on the Maple WebApp here.
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About Maple Finance
Maple Finance is an institutional capital marketplace powered by blockchain technology. On a mission to redefine capital markets through digital assets, Maple expands the digital economy by providing undercollateralized lending for institutional borrowers and fixed-income opportunities for lenders. The economic potential of the future will be fulfilled by harnessing global capital and applying it to areas of greatest opportunity. For more information visit: www.maple.finance
Celsius helps over a million customers worldwide to find the path towards financial independence through a compounding yield service and instant low-cost loans accessible via a web and mobile app. Built on the belief that financial services should only do what is in the best interest of the customers and community, Celsius is a blockchain-based fee-free platform where membership provides access to curated financial services that are not available through traditional financial institutions. For additional information please visit www.celsius.network.