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News

Maple Finance Is Caught Up In A Liquidity Crisis

June 23, 2022 - Around 2 mins mins to read
Lending platform Maple Finance has become the latest crypto company to face liquidity-related issues.
Maple Finance Is Caught Up In A Liquidity Crisis

The platform posted an update on its website in a post titled “Managing Liquidity For Lenders And Borrowers”, saying: “There is insufficient cash in pools”.

It is known that liquidity problems on the DeFi platform began to appear this week. Although Maple Finance said that as the loans mature in the coming weeks, an increase in available capital in funds repaid by borrowers will allow lenders to withdraw funds.

The company also said that the ability of lenders to earn interest and rewards of Maple tokens (MPL) will not be affected.

After all withdrawal requests are processed, team representatives will begin to issue loans again. Orthogonal Trading, a crypto hedge fund, has admitted that there is a $10 million loan to Babel Finance from the Orthogonal USD Coin team on Maple.

Accordingly, Babel halted withdrawals and entered into a repayment agreement.

The crypto world has been under severe pressure with the recent market crash. Many platforms are facing a liquidity crisis, pushing these companies to the brink of bankruptcy. Even cryptocurrency miners are struggling. Accordingly, Canadian Bitcoin miner Bitfarms had to sell 3,000 BTC to improve liquidity for the company.

It will take time and energy for industry players to reshape themselves and weather the market downturn without further damage.

However, the above developments will always be a part of the crypto market, although the rapid growth of the past few years has certainly contributed to the failure of these companies.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

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Harold

CoinCu News

Babel Finance

Bitfarms

Maple Finance

Orthogonal Trading

USDC

Author

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.
News

Maple Finance Is Caught Up In A Liquidity Crisis

Lending platform Maple Finance has become the latest crypto company to face liquidity-related issues.
Maple Finance Is Caught Up In A Liquidity Crisis

The platform posted an update on its website in a post titled “Managing Liquidity For Lenders And Borrowers”, saying: “There is insufficient cash in pools”.

It is known that liquidity problems on the DeFi platform began to appear this week. Although Maple Finance said that as the loans mature in the coming weeks, an increase in available capital in funds repaid by borrowers will allow lenders to withdraw funds.

The company also said that the ability of lenders to earn interest and rewards of Maple tokens (MPL) will not be affected.

After all withdrawal requests are processed, team representatives will begin to issue loans again. Orthogonal Trading, a crypto hedge fund, has admitted that there is a $10 million loan to Babel Finance from the Orthogonal USD Coin team on Maple.

Accordingly, Babel halted withdrawals and entered into a repayment agreement.

The crypto world has been under severe pressure with the recent market crash. Many platforms are facing a liquidity crisis, pushing these companies to the brink of bankruptcy. Even cryptocurrency miners are struggling. Accordingly, Canadian Bitcoin miner Bitfarms had to sell 3,000 BTC to improve liquidity for the company.

It will take time and energy for industry players to reshape themselves and weather the market downturn without further damage.

However, the above developments will always be a part of the crypto market, although the rapid growth of the past few years has certainly contributed to the failure of these companies.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Harold

CoinCu News