Credora-Maple USDC Pool Update
- Announcing the expansion of the Credora (formerly X-Margin) Maple Pool on Solana
- Pool Capacity has been increased to $80m due to strong demand with expected yields of 9-12%
- The creditworthiness of the borrowers in the Credora Maple Pool was monitored in real-time during the market downturn and reaffirmed quickly
- Demand for credit has increased given the pull-back in lending from major institutions, driving an increase in rates
Better Risk Management is Needed in Crypto
The demise of Terra Luna, Celsius, 3 Arrows Capital, Babel, Voyager, and BlockFi, among others, drained capital from the crypto ecosystem and highlighted the importance of counterparty credit risk. Furthermore, demand for credit has increased given the pull-back in lending from major institutions, driving an increase in rates. We can see a general reduction in liquidity and capital deployment across the ecosystem, evident in DeFi value locked.
Bringing Transparency to Crypto Credit
Maple’s on-chain infrastructure brings real-time transparency into the loans, and Credora’s technology brings real-time transparency into the risk of those loans. This level of risk management and openness is unparalleled in DeFi or CeFi, creating a compelling risk-to-reward opportunity.
Transparency through Volatile Markets
During the recent market downturn, Credora’s real-time risk monitoring performed as intended and we were able to track borrowers’ assets through the market volatility.
These insights added transparency and provided a foundation for healthy conversations with the borrowers, confirming their creditworthiness and ability to meet obligations for interest payments and future principal repayments. Real-time data and risk management allowed Credora and Maple to communicate the pool’s health to the lenders and broader community. Lenders and borrowers benefit from the added transparency building a foundation of trust and allowing them to maintain their loans.
Demand for Transparent Credit is Growing
Creditworthy borrowers still have demand for liquidity, but greater transparency and evidence of creditworthiness is increasingly a requirement. Credora’s Maple USDC pool assesses counterparty risk through a systematic credit evaluation of the borrowers before they enter the pool, and for the duration of any loan to them. The initial pool loans of $40M have mostly come to term,and we have begun refinancing the loans at the higher cost of capital in the market. The pool cap of $40M increased to $80M as demand for transparent risk-managed yields increased. The pool provides lenders an opportunity to seamlessly deploy capital across diversified high quality borrowers.
The Credora Pool on Maple is the first open credit pool on Maple Solana, and drives one of the most impressive and sustainable risk-adjusted returns. The pool is expected to materially increase its prior yield to 9–12% across a more diversified and actively risk-managed set of borrowers. Comparative rates in the Solana ecosystem are outlined below:
A New Chapter in Crypto Credit Markets
To date, Credora has facilitated $750m+ in uncollateralized loans across 70+ borrowers & lenders with clients and can help well-capitalized, risk-managed borrowers borrow in a transparent and secure way. The technology performs real-time, privacy-preserving risk computations, creating a foundation for lending confidently across the crypto ecosystem by being a neutral arbitrator of risk. The architecture seamlessly ingests data from most large CeFi exchanges (Credora coverage currently accounts for 85% of CeFi volumes) while covering DeFi and staking activity from 14 EVM compatible chains and Solana.
Credora’s technology will help lay the foundation for a standardized and secure method of credit evaluation to help guide the future of credit and regulation in crypto.
We’re committed to bringing sustainable, transparent, and scalable yields to DeFi. Our collaboration with Maple is a big part of making that happen.
Pool Terms and How to Onboard
If you’re an institutional borrower that wants a more capital-efficient borrowing source, please reach out via this form. If you are interested in seeing the Credora platform in action, please reach out to our team below to schedule a demo.