Maple Protocol Overview V1.0.0

The Maple protocol offers the most capital efficient option for institutional borrowing and fixed income lending in decentralized finance.

High Level

Users can access reliable yield opportunities on Maple by depositing capital into Liquidity Pools. These Liquidity Pools are managed by experienced investors, known as Pool Delegates.

See our technical documentation here.

Institutional Borrowers can access transparent and efficient financing on-chain with Maple, leveraging their reputations to borrow under-collateralized without fear of liquidation and margin calls.

Pool Delegates conduct due diligence and agree on terms with Borrowers before funding loans from their designated Liquidity Pool.

Liquidity Providers earn a sustainable yield through diversified exposure to crypto's premium institutions and enjoy a set-and-forget solution as diligence is conducted by Pool Delegates.

Users

Liquidity Providers (LPs) - provide liquidity to a pool for the opportunity to earn a fixed interest (based on borrower terms) as well as any associated MPL mining rewards.

Pool Delegates - credible asset managers who launch and manage liquidity pools. They each develop their own investment strategy and underwriting process for determining creditworthy borrowers.

Borrowers - institutions looking for working capital. Borrowers include hedge funds, prop traders, market makers, exchanges, centralized lenders, crypto miners, and scale-ups.

Stakers - provide pool cover by staking tokens into pool stake locker contracts. These tokens will be first to be liquidated in a default. Stakers receive a percentage of the interest earned by the pool from borrowers.

Protocol Diagram Overview

Find the detailed smart contract architecture here.

Steps to Launch and Lend on Maple

  1. Maple Governance approves Pool Delegate

  2. Delegate creates profile and strategy

  3. Delegate deploys and initiates pool

  4. Delegate activates pool by staking pool cover minimum amount of MPL:USDC Balancer Pool Tokens (BPT)

  5. Stakers view delegate profile and add additional BPTs for pool cover to desirable pools

  6. Liquidity Providers (LPs) review delegate profile and add liquidity to desirable pools

  7. Borrower creates borrower profile and details loan terms

  8. Delegate views borrower requests and conducts private diligence on terms directly with borrower

  9. Once terms are agreed, borrower launches loan contract

  10. Delegate funds the loan contract with the pool liquidity

  11. Borrower draws down the loan and stakes collateral in one transaction. An Establishment Fee is taken from drawdown and sent to the delegate and Maple DAO Treasury

  12. Borrower pays interest according to the scheduled repayment cycle and pays principal with final repayment upon maturity

  13. Delegate claims interest on behalf of the pool throughout the loan term and claims principal with final repayment upon maturity

  14. Delegates, LPs, and Stakers can all claim available interest throughout the process

Protocol Parameters

Parameters associated with the Maple protocol include those that are pool specific (Pool Parameters), and those that affect the entire system (Global Parameters).

Pool Parameters

These parameters are determined by the Pool Delegate when first configuring and deploying the pool contract.

Static Parameters

These parameters define aspects that cannot be changed post pool deployment.

Liquidity Asset - denominated ERC20 token asset used for a pool to lend to borrowers and accept as interest.

Delegate Fee - percentage of interest generated by the pool that is allocated to delegate.

Staker Fee - this is the percentage of interest generated by the pool that is given to Stakers.

Flexible Parameters

These parameters can be changed post pool deployment.

Pool Capacity - total liquidity value a pool will accept. Once this value is reached, the pool has no more capacity for additional liquidity.

Liquidity Access - delegates determine whether the opportunity to provide liquidity in a pool is open privately to a select list of Ethereum addresses or open publicly to any address.

Staker Access - delegates determine whether the opportunity to stake cover for a pool is open privately to a select list of Ethereum addresses or open publicly to any address.

Lockup Period - this period determines the length of time liquidity in a pool must be locked prior to withdrawal by LPs or Stakers. The period can be decreased by the pool delegate, but not increased.

Global Parameters

The global parameters span a broad range of factors that contribute to the possibilities enabled by the Maple protocol. These parameters were first specified by the Maple core team and eventually will be determined via broader Maple governance.

Treasury Fee - fee sent to the Maple DAO Treasury from every loan drawn down from the protocol.

Delegate Fee - fee sent to the delegate from every loan drawn down in their specific pool.

Cooldown Period - the cooldown period is a period of time require to past after an LP or Staker initiates withdraw.