BoC’s Unique Selling Proposition III: A Comparison with Maple.
BoC vs Maple: Service Offerings Compared.
BoC currently offers yield generation for cryptocurrencies, including stablecoins and Ethereum. In addition to personal banking, payment solutions, and institutional services, BoC has plans to offer a range of other services in the future. Ultimately, The goal of BoC is to become the first community owned, decentralised neobank.
Maple is a capital network which provides the technology to enable credit experts run lending businesses and connects lenders and borrowers in the institutional market.
BoC vs Maple: Risk Minimisation.
Traditionally, lenders typically assess the creditworthiness of borrowers through a process called underwriting to minimise the risk of default. On-chain lending protocols like Aave which require borrowers to provide collateral that is worth more than the loan amount as a way to reduce the risk of default.
As a facilitator of under-collaterised lending, Maple is subject to the risk of default. However, BoC aggregates decentralised finance (DeFi) platforms which over-collaterised lending, therefore eliminating the risk of default.
BoC vs Maple: Yield Generation.
BoC generates yield through several sources, including fees for facilitating liquidity on automated market makers (AMMs), interests on borrowed funds, rewards for holding governance tokens, and rewards for staking. While, Maple generates yield for business operations by charging borrowers who lend money from the pool.
Maple offers two yield generating opportunities to users, through lending assets and staking. Lenders can gain interest on crypto-assets lent to pools available on the platform. As holders of Maple’s token (MPL), delegates share a portion of fees and receive staking rewards.
On the other hand, BoC enable users gain interests on crypto through yield optimisation from a number of DeFi protocols, which include automated market makers, lending protocols and others, on various blockchain networks.
While BoC’s and Maple’s main methods of generating yield differ slightly, the interest rates can be compared. In comparing interest rates between BoC and Maple, the most interest offered on BoC is 11%, while the highest APY available to lenders on Maple is 6.19%.
BoC vs Maple: Asset Withdrawal.
Maple limits funds withdrawal to ‘withdrawal cycles’, which are limited periods where withdrawal requests can be made. Additionally, these cycles vary depending on the pool that funds are deposited into. Contrary to this, with BoC instant withdrawal of funds by user is possible.
BoC vs Maple: Summary.
Although both BoC and Maple enable interest generation on crypto-assets, the methods utlised to generate yield for users vary. While Maple is primarily a lending pool aggregator, BoC aggregates and optimises yield from a number of DeFi protocols, including lending protocols and automated market makers.
For additional info on BoC mechanism, governance, user handbook, roadmap and more, please refer to the BoC Documentation.
