Cryptocurrencies have grown by leaps and bounds in the past few years, regardless of their value or reputations. A reliable and secure platform is needed to earn a decent savings interest rate of Bitcoin and other popular cryptocurrencies. Celsius Network is a crypto lending and borrowing platform known for paying out high yields on stablecoin deposits. Recently, it announced that it committed $30 million in wrapped Ether (wETH) to Maple Finance’s liquidity pool.
Maple Finance is a corporate debt marketplace that allows institutional borrowers to form the liquidity pools funded by the DeFi ecosystem. Market makers like Wintermute and Amber receive liquidity from Maple Finance. From this link-up, Celsius Network will get exposure to the yield generated by such firms for its large capital pools.
Maple Finance’s CEO and co-founder, Sid Powell, said in an interview, “The interesting angle is that Celsius is using DeFi to run its lending infrastructure. It’s a big move forward where you have a CeFi lender acknowledging that they need to be in DeFi and turning to Maple to run their infrastructure.”
While the Celsius Network liquidity pool is starting at $30 million, Maple Finance CEO believes it can be worth $500 million to $1 billion in 12 months. In November, Maple Finance also launched a pool for Almeda Research, which gave institutions exposure to Alameda’s yields in the form of a loan. The pool started at $25 million and has grown to $100 million since then.
After BlockFi’s $100 million penalty payment, Celsius Network might be next on the list of US Securities and Exchange Commission (SEC). The regulatory body is still investigating whether the yield-bearing products offered by the company should be registered as securities. Before you invest in any crypto lending platform, we highly recommend exploring and comparing all the best available options.