This quarter we also have a visual report, accessible here, it’s an easy read and the same information is featured.

The information presented below is based on Maple’s performance for the period ending 30th of June 2022. All figures are shown in USD and based upon wETH price of 7/18.

Strength in a downturn

Crypto markets have seen a significant contraction of activity and total value locked in Q2. The industry shrank by 67% this quarter while Maple’s Total Active Liquidity contracted by only 12%. The platform remains resilient through difficult market conditions attributable to the transparency and operations of our smart contract infrastructure.

Maple Pools have provided a stable source of yield with Lenders earning over $17M in interest throughout Q2 with an average APY of 7.82% excluding MPL rewards. Since Maple’s launch in May 2021, 23% of Lenders have increased their lending position by an average of 3.76x on their initial deposit. The Pools continue to attract new Lenders with the total number of Lenders increasing 25% throughout the quarter. These data points indicate the value of providing capital to well capitalised businesses with strong cash flows that are not correlated to market conditions, that Lenders are confident in entrusting Pool Delegates with their capital and the growing awareness of opportunities with Maple.

On the borrow side, we witnessed an increased appetite for capital from the 41 borrowers onboarded across the platform. These favourable lending conditions and opportunities for Maple are heightened because lending supply has contracted from CeFi lenders, and capital remains to be inaccessible from TradFi sources from the current crypto-native borrower set. Looking ahead to Q3, our focus is to continue stabilizing the protocol and return to growing deposit volume so to issue loans to premium crypto institutions. Moreover, we will begin expanding into new borrower verticals to diversify our exposure to the crypto industry.

Generating revenue through market contraction

This quarter the platform originated $414M in loan volume across 40 new loans, down from $618M loans across 56 new deals in Q1. Despite the reduction in month on month volume, the platform continued to gain momentum throughout Q2 with total loans issued to date coming to over $1.5 billion.

Maple closed the quarter with $755 million in Total Active Liquidity, a decrease from last quarter, but outperformed relative to broader market contraction of 67% in DeFi total active liquidity and significant pullbacks and disruptions in CeFi.

The objective in Q3 is to get back to growth mode and reach $1 billion in Total Active Liquidity by the end of the quarter. In order to achieve this we will focus on returning the existing pools to net positive lending capital growth and launch new pools with existing Delegates, as well as new pools with new Delegates and in new borrower verticals.

Pool Performance

Maple Ethereum

Maven 11 USDC Pool

The Maven 11 USDC Pool has issued $468 million in loans to date with $99 million in Q2.

Interest paid to Lenders in Q2: $5.6 million

Net losses: 0

Read an update on Pool performance from the Maven 11 team.

Maven 11 wETH Pool

The Maven 11 wETH Pool has issued $27.3 million in loans to date with $11.6 million in Q2.

Interest paid to Lenders in Q2: $257 thousand

Net losses: 0

Read an update on Pool performance from the Maven 11 team.

Orthogonal Trading USDC Pool

The Orthogonal USDC Pool has issued $518 million in loans to date with $73 million in Q2.

Interest paid to Lenders in Q2: $7.1 million

Net losses: 0

Note: A loss of $7,852,146 USDC was recognized on 2nd July, constituting around 4% of assets at the time.

Read more on the performance of the Pool and future opportunities from the Orthogonal Team here.

The Orthogonal USDC pool for Alameda Research

The Orthogonal pool for Alameda Research has issued $288 million in loans to date with $89 million issued in Q2.

Interest paid to Lenders during Q2: $2.7 million

Net losses: 0

Read more on the performance of the Pool and future opportunities from the Orthogonal Team here.

Celsius wETH Pool

The Celsius wETH Pool has issued $21.7 million in loans to date with $5.1 million in Q2. **Interest paid: **Celsius lend capital from its own balance sheet, $175 thousand in interest has been paid to Celsius in Q2.

Net losses: 0

More information on Celsius as a Lender, not a Borrower on Maple can be found here.

Maple Solana

Genesis Trading

The Genesis Trading USDC Pool has issued $75 million in loans to date all in Q2.

Genesis Trading lend capital from its own balance sheet.

Interest paid to Genesis during Q2: $614 thousand.

Net losses: 0

X-Margin

The X-Margin USDC Pool has issued $38.9 million in loans to date all in Q2.

Interest paid to Lenders during Q2: $507 thousand

Net losses: 0

Revenue Breakdown

The business model of Maple is simple, the more loans issued, the more revenue flows to the Maple Treasury. Revenue for the protocol is received through Loan Establishment Fees that are paid by Borrowers at 0.99% annualized. Two thirds, or 66bps, is paid to the Maple Treasury and one third, or 33bps, is paid to the Pool Delegate that originates the loan.

The launch of Maple Solana in April has contributed $119,590 of USDC revenue to the Maple Treasury in just 2 months. X-Margin and Genesis opened pools that have issued $113 million in loans to the existing borrower set and the Maple team plans to grow loan originations over the year by adding unique features to cater to broader market sets. Dive into our H2 Roadmap for more detail.

For further details on how Maple Treasury generates revenue check out this 15 minute overview video recorded recently with Token Terminal.

Expenses breakdown

Here is a breakdown of Q2 2022 expenses, with an outline of budget vs. actual expenditure. Cash flows were negative in Q2 due to subdued loan volume and continued investment in the development of the team and business operations. Overall, expenses were 5% over budget with the major variance due to recruitment and marketing costs.

The majority of Maple’s cost base is our people with 75% of total expenses being attributed to team salaries and recruiting costs. In Q2, the team grew by 9 people and key hires were made to lead sales and operations. While these expenses are significant, they are imperative for the continued development of the platform and our long term growth.

We also grew the product delivery engine by hiring several engineers, a data analyst and a Product Manager. The team will continue to develop and enhance our product offering and build an intuitive, scalable capital-market infrastructure to achieve our long term vision. Dive into our H2 Roadmap for more detail.

The new Maple brand and website marks an important milestone in Maple’s journey. Updated 1 year after Maple’s commercial launch, the brand reflects our maturity and differentiated product. The new website serves as a one-stop-stop and will continue to build out over time, and seamlessly funnels leads and information into the team.

Spotlight on xMPL

On May 30th, we launched xMPL - the opportunity to stake MPL to earn a share of protocol revenues and vote on key decisions. We bootstrapped the launch with 20,000 MPL, distributed over the first 3 months. Within 1 month 38% of circulating MPL supply had been staked, 6600 MPL was issued to Stakers, each enjoying an average APY of 3.76% on their otherwise idle MPL holdings. Going forward Maple will use 50% of monthly revenues to buy MPL back from the open market and issue to xMPL holders.

Closing Out Q2 2022

The second quarter of 2022 has been eventful. While market fluctuations have caused some shift to manage short term pressures, our focus remains steadfast to get back into growth mode; execute on growing existing and new markets, build new product features and bring efficient, on-chain capital markets to the world.

Some major initiatives and goals for the next quarter include:

• Maple 2.0 — A fundamental overhaul of the current smart contract infrastructure that will correct current flaws and enable scalability of the platform. The first version of the protocol enabled Maple to grow from from zero to $1.5 billion, Maple 2.0 will allow scaling into the 10s of billions and beyond.

• $1BN in active liquidity — delegates will grow the lending balance in Maple’s existing pools and Maple will launch new pools to enable greater loan volumes on the platform.

• Expand borrower verticals — we plan to launch Maple’s first crypto mining pool and pursue opportunities in other borrower verticals.

• New and unique features for Maple Solana — introduce open-term loans; loans without a predefined end-date that can be called by the Borrower or Pool Delegate when required.

The combination of initiatives, team and technology provides the right ingredients for Maple to continue scaling through any market conditions. If you have any questions feel free to reach out to us on Discord or Telegram.

Read Q2 2022 Treasury report in visual form here.

For full transparency, here are the Maple wallet addresses:

Maple Treasury (collects fee revenue for the protocol) — 0xa9466EaBd096449d650D5AEB0dD3dA6F52FD0B19

Maple DAO (holds balance sheet and governor of protocol) — 0xd6d4Bcde6c816F17889f1Dd3000aF0261B03a196