Nexus Mutual Is Pulling Out Of Maple’s wETH Pool And Expecting $3 Million Loss

Nexus Mutual is currently seeking to divest from Maple’s wETH pool and expects a $3 million loss due to exposure to Orthogonal Trading’s $36 million default on Maple Finance.

According to The Block, Nexus Mutual said in a statement that it plans to withdraw funds from the Maple Finance M11 Credit wETH team. The company has already started the available withdrawal process, with a required waiting period of 10 days, and hopes to recover most of the funds deployed on Maple.

“We have initiated the process to withdraw available funds. There is a mandatory 10-day waiting period. We expect to recover the majority of the capital deployed into Maple,”

Nexus told The Block

When things settle down, Nexus could lose around $3 million on its investment in Maple Finance. Since Nexus was deployed to the wETH team, the loss could have been minimized.

80% of Maple’s funds in the USDC pool are exhausted. Nexus Mutual said: “In light of allegations of financial misstatement and very disappointed with Orthogonal Trading.

“We are extremely disappointed with Orthogonal Trading, given the allegations of financial misrepresentation. Due to this, Nexus Mutual expects a loss of 2461 ETH (15.8% of our investment in Maple) on the Orthogonal loans. We support M11 Credit and Maple in pursuing the appropriate legal action to maximize recovery,”

Earlier, yesterday it was reported that Orthogonal Trading had defaulted on 8 loans totaling $36 million to Maple Finance. Trading says it is defaulting because more money is stuck on FTX.

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