The Dutch cryptocurrency investment company Maven 11, has launched its third loan pool on Maple Finance, giving borrowers access to liquidity amid the bear market.
The $30 million fund funded by institutional lenders will be used by trading companies including Wintermute, Auros and Flow Traders, among others, Maven 11 announced this week. The new fund is designed “specifically for institutions looking for performance opportunities,” the company said.
Maple, a decentralized finance credit platform, is filling the void left by the implosion of major centralized finance (CeFi) companies like Celsius. The liquidity restrictions caused by the collapse of Terra Luna and its subsequent repercussions have led borrowers to seek new credit opportunities within DeFi.
Since its launch in 2021, Maple Finance claims to have issued more than $1.5 billion in cumulative loans, with total deposits exceeding $635 million at press time. The protocol currently has more than $58 million in total value locked, or TVL, according to DeFi Llama. Much of the TVL comes from Ethereum, although Maple expanded to Solana in April of this year.
Maven 11 manages a successful risk arm, having raised $160 million in cumulative funding in 2021 to support promising projects in the DeFi and Web3 industries.
Some prominent names in the crypto industry believe that DeFi’s push for mass adoption will be favored by institutions. At the Blockchain Futurist conference in Toronto on Wednesday, Ripple Labs executive Boris Alergant stated that the DeFi sector has yet to create the next “big app” to appeal to the masses. Institutions will play an important role in offering exposure to DeFi services.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.