Introduction

As 2023 draws to a close, we reflect on a transformative year for Maple. In the wake of the tumultuous shifts within the crypto industry, our team has navigated these challenging times with resilience and foresight. This year was a testament to our adaptability and commitment to innovation, marked by the successful launches of Maple Cash and Maple Direct, and the significant expansion of our lending network. As we look back, we do so with a sense of pride in our accomplishments and a renewed sense of purpose for the future, ready to empower lending markets in 2024 and beyond.

Repositioning, Maple Cash and the Fundraise

After a thorough review of Maple’s business and the market conditions at the start of the year it was clear that a shift in direction was required. The technology that we built was exceptional but the lending products we offered were not suited to the market conditions. Lenders were shying away from risk and Maple’s Total Value Locked dropped to $15m. Our focus turned to yields sourced from Real World Assets to offer customers stability in a volatile market.

With our runway depleting and fundraising efforts initially falling on deaf ears, we zeroed in on Maple Cash. Maple Cash offered a straightforward proposition for startup treasuries and HNWIs to earn yield on stablecoins, sidestepping the traditional banking system's apprehensions about crypto. Backed by T-Bills and providing daily redemptions, it was a practical solution for customers that met their needs in the market environment and provided the backbone for Maple to re-establish itself.

Maple Cash's growth trajectory was clear by mid-year, giving us the momentum to secure additional funding and extend our operational runway. This period also saw our Real World Asset offerings, including AQRU’s Tax Receivables pool, expand to over $50 million. We were serving a growing, diverse clientele with differentiated yield offerings and superior technology.

We reimagined our loan process for Maple Cash, which was only possible with the introduction of Open Term Loans. The new loan structure provided flexibility to manage liquidity, utilization and interest accrual optimally. Since their launch, Open Term Loans have represented 90% of all loans issued and increased the average utilization of Maple pools to 98%. These meaningful improvements highlight Maple’s commitment to building exceptional products.

Launching Maple Direct

As we entered the second half of the year, Maple was in a much stronger position. We had successfully transformed our strategy, secured our future with a fundraise and reinvigorated our customer base with exciting opportunities. It was time to focus on growth again.

We decided that in order to drive growth on the platform we needed to control our destiny directly. A consistent problem we faced was onboarding new external Delegates. Maple already had the internal credit expertise and deep knowledge of crypto lending markets. So, we launched Maple Direct, Maple’s own lending business operating on top of the Maple platform. This new direction would enable us to capitalize on opportunities quickly, move with the ever changing market and create lending products that met our customers’ requirements.

Maple Direct debuted its first pool in September with Secured Digital Asset Lending. After months of building, structuring and pitching the team had created an innovative product with unparalleled risk adjusted yields. Combining the best of collateral protection with Qualified Custodians and the efficiency of our smart contracts, Maple Direct quickly made a name for itself as a reliable alternative to CeFi. The product maintained Maple values by offering transparency into loan performance and collateral security. We found that trust grows when you're not chasing it and the pool thrived, originating over $50 million in loans.

Multi-Chain Expansion

Maple had focused squarely on Ethereum, but as we navigated through 2023, we asked ourselves whether we should embrace broader opportunities. The numbers from other chains weren't completely compelling, yet the consistent murmurs of building on platforms like Base signaled an opportunity we couldn't overlook.

At a mid-year conference, an initial conversation with a customer to revisit Solana quickly became a chorus of requests. It was clear, to remain relevant and grow, we needed to consider expanding our ecosystem. Stability is comforting, but in a rapidly evolving market, comfort can lead to complacency.

Choosing the right chain wasn't about following the crowd; it needed to be a strategic decision as the opportunity cost was high. We expanded to Solana and Base, driven by a clear vision of what Maple could become. On Solana, we found a dynamic space where our solutions could meet real needs, from payments to a resurgent DeFi sector. Base opened doors to institutions, offering them a reliable entry point into DeFi, supported by Coinbase’s trusted product ecosystem. Our journey into multi-chain territories is just getting started and our products need to reach our institutional audience, wherever they may be.

Time to Grow Again

Throughout the second half of this year, Maple has more than doubled its Total Value Locked (TVL) and briefly hit $100m TVL again. The combination of Maple Cash, Maple Direct and our Multi-Chain expansion has seen 10 new pools launch with none of our active loans or TVL being contributed from products or pools that existed before the start of this year. Maple is a transformed platform for the better with a diverse set of offerings for capital allocators around the world. We are proud of this transformation and it was only possible thanks to the tireless efforts of the entire Maple team.

Conclusion

Confucius said “Our greatest glory is not in never falling, but in rising every time we fall.” Maple is a renewed business with a renewed energy and direction. Through determination and resilience, we have created a solid foundation this year that enables us to focus on two main things for 2024:

1. Diversity of lending opportunities - creating differentiated lending products that appeal to capital allocators and their risk/return requirements

2. Enabling access with innovative technology - expanding Maple’s network of capital allocators with seamless access and sophisticated experience

We will continue to embody a culture of ownership, relentless execution, and unwavering commitment to our customers as we build towards becoming the most reliable lender in the global financial system.

Here's to a 2024 of Maple transforming and empowering institutional lending markets.

Sid & Joe