Crypto lender Maple Finance is also facing liquidity issues amid the ongoing liquidity crisis in the crypto market. Maple Finance on Wednesday revealed that Babel Finance has a loan of $10 million in the Orthogonal Trading liquidity pool on Maple.
In fact, Maple Finance has warned that the lending protocol may face liquidity issues in its pools due to more withdrawal requests. Lenders may not be able to withdraw funds and must wait for borrowers to repay the loan.
Meanwhile, Maple’s MPL token price has fallen nearly 50% in June, with the current price trading at $15.81.
Maple Finance’s Exposure to Celsius, Babel and 3AC
Maple Finance on June 22 said Orthogonal Trading, a delegate with liquidity pool on Maple, has offered a $10 million loan in USDC to Babel Finance from its liquidity pool on Maple. Moreover, Orthogonal has been in touch with Babel management since Babel stopped withdrawals due to liquidity pressure. Also, the team has promised to focus on protecting the interests of lenders.
Liquidity pools on Maple are facing a cash crunch due to liquidity pressure. The current lending balance in several pools is zero. Lenders generally deposit into a pool to earn interest in the pool’s liquidity asset. This interest is determined by the terms set by the pool delegate and borrowers. In return, lenders earn MPL rewards.
