Crypto lending protocol, Maple Finance, has released another version of its smart contract architecture called Maple 2.0. The lending firm made this move just a week after the $36 million loan default on its lending pool.
Announcing this in a Twitter post, Maple stated that Maple 2.0 is a fundamental overhaul of its smart contract architecture. It also noted the contract’s modular and robust nature would enable Maple to bring capital markets on-chain.
With Maple 2.0, the firm hopes to reduce the risk associated with its services which arise from sector concentration. Most of the lending activity on Maple consists of crypto firms and market makers in the digital asset space. This led to Maple’s exposure to FTX contagion after its collapse and some skepticism after Orthogonal’s $36M loan default.
Maple stated the first version of the protocol facilitated its growth from zero to $2 billion in loan originations. However, Maple 2.0 will enable its scaling into tens of billion and beyond. The developments were based on experience, community feedback and user testing with long-term partners and users.
According to a statement by Maple,
“Maple 2.0 is a fundamental overhaul of the smart contract architecture that improves on current flaws and provides a flexible and strong base to scale. The contracts are modular, so iterative development of new features, loan structures and strategies can be more efficiently delivered.“
Some new features with the latest version include scheduled and prorated withdrawals, first loss capital overhaul, removal of lending capital lock-up and auto compounding interest. There is also the adoption of ERC-4626 standards for interoperability within DeFi, and improved data and dashboards.
Maple stated it now has an even stronger foundation to continue building its business. Its three strategic focus areas for 2023 are diversified lending opportunities, attracting new and reputable delegates and creating cutting-edge digital asset technology on Ethereum.
