Instead, it all lies in the hand of the lending pools to decide on granting the crypto loans or not. They would have to evaluate the borrower’s ability to repay based on his creditworthiness.<\/p>\n
Maple Finance Suffers Bad Debts Due To Risks of Uncollateralized Loans<\/h2>\n
However, the prevailing crisis in the crypto market has given a massive blow to Maple in terms of stress tests since its launch in 2021. The protocol has witnessed a cumulative $36 million of defaulted<\/a> loans and $18 million distressed in the past fortnight.<\/p>\n Maple’s bad debts represent about 66% of the total outstanding in its four active lending pools. Also, most of the vast borrowers have revealed losses due to their investments in the collapsed FTX exchange.<\/p>\n The outplaying events are creating negative waves for Maple<\/a>. Already, its native token, MPL, has plummeted to an all-time low as it lost 50% of its value. Most participants and analysts are trying to highlight the wrong footing with the DeFi lending platform.<\/p>\n They intend to x-ray the rules and operations of the protocol for a possible amendment that could sustain the project again.<\/p>\n The focus is on the risks associated with uncollateralized crypto lending. Also, a combination of fraudulent decisions and poor protocol design heightened the project’s condition.<\/p>\n Maple faces a severe crisis with its crypto credit formalities. The protocol grew its lending book to $900 million within a year. Its popularity spiked among market makers that seek liquidity for borrowing and crypto trading companies. However, its range of depositors comes from institutional and average retail investors that want huge yields.<\/p>\n We would like to provide an update regarding Auros, who today missed the principal payment on a loan of 2400 wETH which triggered a 5-day grace period as per the smart contracts. <\/p>\n 1\/5 \ud83e\uddf5<\/p>\n — M11 Credit (@M11Credit) November 30, 2022<\/a><\/p><\/blockquote>\n![\"Maple](\"https:\/\/uniquehot.com\/wp-content\/uploads\/2022\/12\/MPLUSDT_2022-12-13_16-23-07.png?resize=860%2C499\")
Shortfalls For Maple Lending Procedures<\/h2>\n
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