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What is Maple (MPL)?

Maple is a network that facilitates lending businesses on blockchain">blockchain technology. Its team comprises of former bankers and credit investment professionals who aim to enhance the traditional capital markets. Maple connects institutional lenders and borrowers and provides the infrastructure for credit experts to operate on-chain. Maple combines industry-standard compliance and due diligence with the transparent and frictionless lending enabled by smart contracts and blockchain technology. It is a gateway to growth for financial institutions, pool delegates, and companies seeking capital on-chain. The network was founded in 2019 and is built with both traditional financial institutions and decentralized finance leaders.

How does Maple (MPL) Work?

Maple is a platform that allows borrowers to receive transparent and efficient financing on-chain through cryptocurrency transactions. Lenders can benefit from a sustainable source of income by lending to a diversified pool of crypto institutions. Pool representatives ensure that due diligence is done and further terms are negotiated with borrowers. Maple offers scalability, allowing users to access funds efficiently, and as borrowers build their track records and expand their businesses, loan opportunities also increase. Sustainability is another key feature, leading to DeFi yields from a profitable and stable pool of accredited borrowers, while mitigating default risk through protective capital reserves. Lastly, security is ensured through third-party audits and smart contract insurance.

What is the MPL Token?

The protocol is run by the Maple Token (MPL), which allows token holders to participate in governance, share in fee revenues, and stake insurance to Liquidity Pools. By depositing capital into Liquidity Pools, users can access fixed-income yield opportunities on Maple, which are managed by experienced investors known as Pool Delegates.

The Maple protocol is on its way to becoming fully decentralized, with MPL holders taking on the responsibility of governance. MPL holders have the power to vote on proposed changes to the protocol, such as adjusting fees, minting or burning MPL tokens, and making other changes at the protocol level. Cryptocurrency burning refers to the process of sending a portion of tokens to a wallet without a private key, resulting in the tokens being lost forever. Token burning is typically done to reduce availability and increase market value. MPL holders who do not wish to participate in governance themselves can delegate their voting rights. Additionally, MPL holders can vote on how fees already charged to the Treasury should be used.