@maplefinance FOUNDERS' LETTER 2024 🥞
Six months ago, we set ourselves a formidable challenge: "It is Time to Grow Again." Our journey over these past months has been marked by execution, innovation, and an unwavering commitment to our long term vision. Seeing Maple’s growth has only motivated us further to continue this positive trajectory.
Late 2023 saw early product-market fit with the launch of Maple Direct and our new Secured Lending program. This early validation of Maple's new direction left us with a strong foundation. As outlined in our 2023 Letter, there were a few primary objectives heading into the new year:
1) Create differentiated lending products that deliver superior risk-adjusted interest yields;
2) Expand access to Maple Direct’s institutional-grade yields to the broader Maple community and DeFi ecosystem;
3) Revitalize Maple's token ecosystem.
During the first half of 2024, we saw meaningful progress on these three key objectives. TVL has grown more than 3x since the beginning of the year, recently crossing $300 million for the first time since late 2022. Active lenders have grown more than 120% since the start of the year, and importantly, lenders using multiple pools increased by 300%.
Expanding Maple Direct’s Secured Lending Offerings:
After launching Maple Direct’s inaugural Blue Chip Secured Pool in the back half of 2023, we came into 2024 with a focus on expanding and scaling the secured lending products. During the first half of the year, Maple brought multiple differentiated yield products to market, including our High Yield Secured Pool as well as Altcoin Lending. Our Blue Chip Secured Pool has also continued to grow, showing strong performance across changing market conditions.
High Yield Secured has been a notable success story. It has paid more than 18% net APY interest for lenders since since its inception in March. Growth has accompanied these strong interest rates, allowing the pool to scale to more than $30 million worth of deposits and become the fastest growing product in Maple’s history (though
@syrupfi may soon change that).
On the Altcoin Lending side, we have served lenders with new token-denominated lending products that have allowed them to retain asset exposure amidst the price action of the (almost) bull market, as well as earn interest in-kind in tokens. Most notably we have seen growth across the majors, offering lending opportunities for BTC, ETH, and SOL holders.
While we are excited about the potential of these new product lines, we are not overlooking the continued growth of Maple Direct’s first product. From the first $75,000 loan coming out of Blue Chip Secured last August, the pool has now grown to more than $30 million worth of loans outstanding. Overall, Maple Direct has now originated more than $300 million of loans, with all Maple pools averaging 96% utilization since the start of the year. Maple's infrastructure for managing these growing books has improved immensely with margin calls all being met on average in less than 4 hours.
Syrup Launch:
Maple returned to its DeFi roots with the complete scoping, development, and launch of Syrup—a new sister protocol built on top of the Maple smart contracts. Syrup enables broader access to the same secured lending engine that we have been building for four years, bringing institutional-grade yield products to the offshore DeFi community.
The development and launch of Syrup has been a testament to the team's ability to innovate rapidly. From ideation to launch in less than three months, Syrup represents a significant milestone in our mission to bridge institutional-grade lending with the wider DeFi ecosystem.
Key features of Syrup:
1) DeFi access to high-quality institutional yields. Fully collateralized lending backed by digital assets to top institutions;
2) Leveraging Maple's battle-tested infrastructure that has originated over $4 billion in loans;
3) An innovative rewards program, "Drips," for early users and fostering community engagement
Syrup saw initial success in its early access period, with TVL growing rapidly to $30 million as users recognized the value of accessing institutional-grade lending through DeFi. The full launch for non-US users took place last week, marking a significant expansion of our ecosystem's reach and impact.
Syrup Roadmap:
1) Deep integration throughout the DeFi ecosystem with other protocols and distribution partners;
2) Expanding supported assets to include USDT and other assets;
3) Enhancing the use of Syrup pool tokens (syrupUSDC) through their acceptance as eligible collateral on major lending protocols;
These initiatives will further solidify Syrup's position as a cornerstone yield protocol in DeFi.
Revitalizing Maple's Token Ecosystem:
A key objective for 2024 was to breathe new life into the Maple community and provide additional utility.
As part of the Syrup launch, "Drips" were introduced, an innovative points program designed to reward early adopters and active participants in the Syrup protocol.
Looking ahead to the second half of 2024, the token ecosystem will be enhanced in a couple of key ways:
- MPL to SYRUP Migration: plans for the migration are being finalized. This transition will streamline the token ecosystem, creating a unified token that represents the entire Maple-Syrup ecosystem. The migration will be designed to ensure a smooth transition for all MPL holders, with ample communication and support throughout the process.
- Staking: In Q4, staking for SYRUP tokens will be introduced by tokenholder vote. Token holders will be given an additional rewards mechanism.
- Community Engagement: Going forward, there will be a greater focus on community engagement. This will include regular AMAs, community calls / X Spaces, and increased transparency into the ecosystem roadmap. Tokenholders will be active participants in shaping the future of Maple and Syrup.
Conclusion:
As we reflect on the first half of 2024, we're incredibly proud of the progress made in expanding Maple's offerings and reach. The success of Maple Direct and the launch of Syrup have positioned Maple strongly coming into Q3.
As we continue scaling Maple and shepherding Syrup's integration into the broader DeFi ecosystem, we remain committed to Maple’s vision - empowering the digital asset economy with secure, innovative lending solutions.
We're grateful for the trust and support of our community, partners, and team members who have been instrumental in our success thus far.
- Sid and
@joe_defi 🥞