The information presented below is based on Maple’s performance for the period ending 30th September 2022. All figures are shown in USD and based upon wETH closing price of $1,329.15 on 9/30.

Outperforming in a Challenging Market

Whist the quarter had its challenges, activities on Maple regained momentum mid-way when deposits picked up and delegates resumed lending to borrowers with operations uncorrelated to the market and where Maple pools are their preferred or main capital source. At the same time, pools became increasingly attractive to lenders as the average APY increased to +9% from +7% the previous quarter, and delegates’ credit-underwriting standards were proven with 99% of all funds lent returned.

Q3 saw $262 million loans originated, the launch of 2 new pools, publicly listed trading firms onboarded and the largest single deposit made to date. Market conditions including the pull back from CeFi lenders, move towards overcollateralized lending, and the Ethereum merge created favorable lending conditions for Delegates, and once withdrawals were fulfilled loans were repriced higher between 11-13% vs. 8-9% USDC average since May 2021.

The platform performed as as expected over the quarter. The smart contracts processed the first liquidation and fulfilled heightened withdrawal requests as cash became available from loan repayments. These scenarios highlighted opportunities to improve our product and business model, and with the upgrade to Maple 2.0 in Q4 customers can expect pool cover to be overhauled and see withdrawals scheduled and prorated.

Comparative strength through the downturn is attributable to the Maple team and Delegates who provided round-the-clock customer support and acted diligently and transparently throughout. Maple is positioned to lead the transformation of capital markets and be the go-to venue for on-chain institutional lending by upholding these values.

For more information on how risks are mitigated, market-outlook and partnership opportunities please reach out to the team. Delegates report on pool performance each month accessible via the WebApp on Ethereum and Solana.

Attracting New Capital

This quarter the platform originated $262 million in loan volume across 35 new loans, down from $414 million loans from 40 deals in Q2. Much of the volume came from mid-quarter onwards when withdrawal requests subsided enabling new loans from all pools. New deposits also increased from this time with notable deposits in August. Nexus Mutual and UXD Protocol deposited $30 million and $7 million respectively and M11 Credit attracted $40M of fresh institutional capital to their pool at launch - growing to $54M by the end of the quarter.

Maple closed the quarter with $340 million in total active liquidity, a decrease from last quarter, but expected and positive in the context of total active liquidity across Institutional DeFi protocols which totals just $963 million*.

*Note: The Institutional DeFi protocols included in the comparison are Goldfinch, TrueFi, dAMM, Clearpool, Ribbon Lend and Centrifuge on Ethereum and Credix on Solana.

Pool Performance

MAPLE ETHEREUM

M11 Credit USDC Pool (Permissioned)

In August, M11 Credit launched a third pool on Maple exclusive to institutional investors. The M11 Credit USDC Pool opened with $40 million and grew to issue $54 million in loans by the end of the quarter. Flow Traders, a leading publicly traded market maker onboarded to borrow on-chain for the first time, and DV Trading, a prominent TradFi proprietary trading shop with an established crypto arm has tapped credit lines too.

Interest paid to Lenders in Q3: $312 thousand

Read an update on Pool performance from the M11 Credit team.

M11 Credit USDC Pool (Public)

The M11 Credit USDC Pool has issued $547 million in loans to date with $80 million in Q3.

Interest paid to Lenders in Q3: $3.2 million

Read an update on Pool performance from the M11 Credit team.

M11 Credit wETH Pool

The M11 Credit wETH Pool has issued $58 million in loans to date with $30 million in Q3.

Interest paid to Lenders in Q3: $277 thousand

Read an update on Pool performance from the M11 Credit team.

Orthogonal Trading USDC Pool

The Orthogonal USDC Pool has issued $559 million in loans to date with $41 million in Q3.

Interest paid to Lenders in Q3: $2.9 million

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

Read an update on Pool performance from the Orthogonal team.

MAPLE SOLANA

Credora

The Credora USDC Pool has issued $94 million in loans to date with $55 million in Q3.

Interest paid to Lenders in Q3: $1 million

Read an update on Pool performance from the Credora team.

*Closed Pools - Celsius, Genesis, single-borrower pool to Alameda Research.

Revenue

In August, we updated how revenue is received and moved from taking a ‘Loan Establishment’ fee at the origination of a loan, to taking an ongoing ‘Platform Fee’, where borrowers now pay fees periodically throughout the repayment cycle of their loan. The model emulates SaaS recurring revenue models and provides more predictable cash flows and ultimately a more sustainable business model for Maple.

The majority of loan originations were in September, and October’s revenues already exceed Q3 totals at ~$207k from Ethereum Platform Fees alone. Token Terminal charts this here.

*The Platform Fee remains 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.

Expenses broken down

We trimmed expenses whilst growing the team this quarter, nevertheless a loss was incurred due to subdued loan volumes and the move to a recurring revenue model.

The commercial, product and engineering teams are now fully equipped and ramping up. Three key commercial hires were made to reach new geographies, tap into traditional private credit markets and to set a new benchmark for customer service in the space. The product and engineering teams expanded with smart contract developers and product managers joining to collaborate on building a secure architecture and intuitive experience for all current and future users of the platform. Dive into our H2 Roadmap for more detail.

The team took the opportunity to meet current and potential customers in New York and Singapore in September. Many new connections were made by sponsoring and exhibiting at DAS NYC and attending Token 2049. Whilst marketing costs constitute a large part of expenses, investment in building a known and trusted brand is expected to have a strong return overtime.

The remainder of the expenses for the quarter are in line with expectations and budgets and fitting for a protocol of our size and ambition.

OUR Q4 FOCUS:

• Maple 2.0 — Maple 2.0 is a fundamental overhaul of the current smart contract infrastructure on Ethereum that will support iterative development to meet commercial and growth strategies. Customers can expect an overhaul of pool cover, see withdrawal requests be scheduled and prorated and interest automatically compound. The contracts are being audited and the WebApp is coming to life.

• New Pools — Icebreaker will ship the first loans to mining firms in November. We are preparing to a provide a credit facility to FinTech firms and pursue opportunities in other potential borrower verticals with high calibre credit professionals as Pool Delegates.

• Market Consolidation - With stability returning to the market we are focussed on highlighting outperformance during the recent crash. The comparisons to other large lenders in the space are clear and the value proposition and competitive risk-adjusted returns should attract more new lenders and see the return of early participants. The commercial team is dedicated to spreading this opportunity.

ONWARDS

Debt capital markets can be be transparent, fair and efficient. Whilst we have a long way to go to bring them on-chain, the last 3-6 months have proven the strength of Maple’s model to provide an all-in-one solution for credit experts to run efficient lending businesses by combining best-in-class compliance and due diligence with transparent and frictionless lending enabled by smart contracts and blockchain technology. We’re energized by what’s next.

Get in touch with the Maple team.

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