Maple Finance: Complete overview of a hub for on-chain institutional lending

What is Maple?

Maple is an innovative lending platform that connects institutions with yield-bearing and structured opportunities by enabling capital to flow through secured, on-chain loan structures. Through both KYC-gated and permissionless front-ends, Maple supports institutional allocators and DeFi-native users seeking access to real yield with clear risk parameters.

Access to credit is a fundamental lever for financial institutions, businesses, and investors. As things are, traditional capital markets enable institutions to borrow to fund their growth, manage cash flow, or seize investment opportunities. However, these mechanisms are often costly, slow, and subject to numerous restrictions and regulations.

With the rise of decentralized finance, blockchain offers alternatives that are more efficient, transparent, and flexible than traditional credit markets. This is where the integration of solutions like Maple helps address the challenges faced in obtaining this kind of financing.

Here is a link to access the Maple platform

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Maple's Value Proposition

Simplified, Intermediary-Free Access

In the traditional financial system, obtaining a loan involves many intermediaries who assess risks, ensure compliance with regulations, etc. The duration and cost of this process constitute a natural barrier to obtaining such loans.

The use of blockchain facilitates procedures by preserving the assurance of borrowers' creditworthiness via over-collateralization, while enabling direct access to a pool of liquidity. This facilitates the matching of lenders and borrowers by removing geographical or financial barriers.

Unified Liquidity

By creating a single market for lending and borrowing that pools funds from lenders globally, Maple makes the market more liquid. This benefits both lenders, who can more easily access high-quality yield opportunities, and borrowers, who benefit from more favorable rates and faster availability.

Transparency

Thanks to blockchain technology, all transactions are publicly accessible, eliminating the opacity often present in traditional finance. Each lender can verify in real time the state of available funds for each loan, as well as the repayment deadlines.

This strengthens user trust and reduces the risk of mismanagement or fraud. The use of blockchain thus fosters a more equitable financial ecosystem, where every participant can make informed decisions without relying on an intermediary.

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Maple’s Technical Architecture

Liquidity Pools

The overall architecture of Maple resembles lending protocols like Aave or Morpho. There are several liquidity pools into which lenders can deposit funds, which are made available to borrowers who must maintain a sufficient margin and pay interest, otherwise they risk partial or total liquidation of their collateral.

However, while the overall infrastructure may appear similar, the way it works is very different. Unlike traditional lending platforms where interest rates vary according to supply and demand, Maple’s pool rates are less volatile and set by the Maple team, who assess the risk associated with each loan and define the cost of debt accordingly. For borrowers, this process ensures that interest rates won’t suddenly spike in case of high capital demand.

The various liquidity pools are structured according to a target yield for investors and based on the types of collateral accepted. This allows for different risk profiles.

For example, the Blue Chip Secured Lending pool only accepts BTC and ETH as collateral, with a current annual yield of around 7.5%. In contrast, the High Yield Secured Lending pool offers a yield above 11% because it accepts riskier collateral such as XRP, SOL, or POL. However, it is worth noting that loans made with more volatile collateral assets are significantly more overcollateralized to protect lenders and create a buffer in times of volatility.

Security Mechanisms

To ensure a secure environment for institutions as well as lenders, Maple has implemented several layers of security. Unlike other lending platforms that rely solely on over-collateralization, Maple adopts a hybrid solution that integrates compliance and risk analysis processes, similar to those used in traditional finance.

First, Maple enforces a Know Your Customer (KYC) process for both lenders and borrowers. This procedure ensures that only regulatory-compliant institutional actors can access the platform. Each entity must be pre-approved by the Maple team, reducing fraud risk and ensuring better transaction traceability. In case of default or dispute, this verification also enables legal action to be taken against the involved parties, further strengthening the protocol’s security and investor confidence.

Second, Maple subjects each borrower to a thorough credit assessment, playing a role similar to that of credit analysts in traditional finance. This ensures both seriousness and solvency. Before receiving funds, the borrower must also sign an agreement defining the contract terms: loan amount, interest rate, and repayment schedule.

Third, Maple provides for the liquidation of collateral if the borrower fails to repay the debt on time or to maintain a sufficient margin. In DeFi, such liquidation is typically triggered automatically when the collateral value drops below the loan amount plus a small premium. In Maple’s case, loans are continuously monitored by the team, which can issue margin calls to the borrower in case of risk. The borrower then has 24 hours to respond and adjust the loan. If they fail to do so, Maple may execute the liquidation by recovering the collateral assets, which are sold to repay the lenders—either via OTC deals or directly on decentralized or centralized exchanges, depending on available liquidity.

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Protocol Evolution

Limitations of v1

Maple Finance launched its first version in May 2021 with the ambition of revolutionizing institutional lending on the blockchain by offering access to credit without requiring extreme over-collateralization, unlike the traditional DeFi model.

The protocol operated through lending pools managed by delegates who selected borrowers and set the loan terms. These were structured into different tranches, allowing investors to choose their preferred risk and return levels. This approach was highly successful, quickly attracting several billion dollars in loans granted to crypto institutions.

However, while under-collateralization made capital more accessible, it also exposed the protocol to higher risk in the event of default. The 2022 bear market—particularly the $36 million default of Orthogonal Trading—exposed this vulnerability. It resulted in significant losses for lenders and called the viability of the initial model into question.

Improvements in v2

In response to this failure, the project team developed a second version released in late 2022 that introduced major improvements to the protocol’s security and flexibility. From now on, all loans must be overcollateralized and underwritten by Maple’s in-house credit arm, Maple Direct. Moreover, Maple offers a broader range of options for structuring loans, including amortizing loans, bullet loans, fixed-rate loans, and more.

In case of difficulty, borrowers now have refinancing options, allowing them to renegotiate their contracts without having to immediately repay the existing loan. Finally, this second version also introduces a new liquidation option via flash loans, reducing the risk of capital loss for liquidity providers in the pool.

SyrupUSDC

The Syrup protocol, launched in 2024 by the Maple team, marks another major evolution by making lending more accessible to DeFi users in eligible jurisdictions while strengthening protocol security. Unlike Maple’s traditional pools, which require identity verification to lend or borrow, Syrup allows non-institutional investors to participate in the credit market by depositing the USDC stablecoin, which are then automatically deployed into Maple pools . Those deposits allow users to mint SyrupUSDC, a high-yielding liquid dollar.

With this development, Maple also announced the transition from its MPL token to the new SYRUP token. By staking SYRUP, users can participate in project governance, receive token emissions, and benefit from a token buyback system funded by a portion of Maple’s revenue, which is used to purchase SYRUP and distribute it to stakers.

With SyrupUSDC, Maple expands its market by allowing small investors to contribute to its liquidity pools. This strategic decision has increased Maple’s popularity by offering more attractive rates than other lending platforms, resulting in strong TVL growth over the past twelve months which only accelerated in Q1 2025.

DeFi Integrations

The launch of SyrupUSDC not only improved the protocol’s liquidity but also broadened its scope within DeFi. The SyrupUSDC supply has exceeded $100M and continues to rise.

This liquidity enables not only the exchange of these tokens on secondary markets but also their integration into other protocols. For instance, syrupUSDC has been integrated into Pendle, allowing users to speculate on future yields or lock them in advance. Additionally, Ether.fi added syrupUSDC to its Neutral USD vault, generating diversified and attractive returns using stablecoins across multiple protocols. syrupUSDC has also found a home on Morpho, where it serves as a counterparty for borrowing. Lastly, SyrupUSDC received a $50M allocation from the Sky protocol. It can be scaled up to $100M in the near future.

The release of SyrupUSDC marked a major milestone for Maple, aiming to improve protocol liquidity, foster integrations, and make usage more accessible.

In parallel, Maple has established a partnership with Core Foundation to deploy a BTC Yield product. It allows institutional investors to earn yield on their BTC holdings. The assets are held by reputable custodians such as BitGo, Copper, or Hex Trust. Within this collaboration, Maple brings its expertise in developing yield strategies based on lending markets, with risk management tailored to institutions. Maple’s BTC product thus provides an institutional-grade solution for generating BTC yield on Bitcoin, while maintaining strong liquidity and security.

Some Metrics about Maple

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Maple’s SYRUP Token

General Overview

SYRUP is the new native token of the Maple ecosystem, replacing the old MPL token following Maple’s transition to a more flexible, community-oriented architecture. This new token is central to the protocol: it aligns participant incentives, strengthens governance, and allows for the distribution of value generated by protocol activity to its contributors.

The launch of SYRUP in November 2024 coincided with the release of the Syrup module, which enables non-institutional users to participate in the Maple ecosystem by depositing stablecoins. The migration from the MPL token took place via a 1 MPL = 100 SYRUP conversion, with no dilution for existing holders.

A Central Role in the Ecosystem

The SYRUP token is more than a governance tool — it is designed to capture the full value generated by Maple products, whether through traditional institutional pools or the Syrup application.

The SYRUP token fulfills three key roles:

• It is the main governance lever: key protocol decisions — the launch of new products, token distributions, treasury recapitalization, etc. — are made by SYRUP holders who have staked their tokens. Governance is carried out via the Snapshot platform, with proposals and votes open to all stSYRUP holders.
• It allows users to earn staking rewards, both through scheduled inflation and regular buybacks funded by protocol revenue.
• It aligns user and protocol interests: revenue generated from institutional loans directly benefits SYRUP stakers, making the token a productive asset aligned with the protocol’s growth.

Maple is one of the few DeFi protocols that implements a revenue-sharing mechanism with its users. A portion of management and service fees collected from operations on the protocol is used to buy back SYRUP on the market and redistribute it to stakers.

SYRUP Tokenomics

During the implementation of the MIP-010 governance proposal (the migration to the new token), approximately 1.15 billion SYRUP were issued. This includes the creation of 1 billion SYRUP at migration, emissions from the voted inflation plan (about 100 million tokens), and allocations scheduled through October 2024.

Following the inflation program approved by governance, the total SYRUP supply is projected to reach approximately 1.228 billion tokens by September 2026. This accounts for an annualized inflation of around 5% over three years.

The distribution respects the commitment not to dilute the existing community while ensuring a clear and transparent issuance mechanism backed by governance decisions.

Details on the SYRUP migration and the inflation plan can be found in Maple’s MIP-010 governance proposal.

Staking: Rewards and Governance

SYRUP staking is central to Maple’s value strategy. Users can deposit their SYRUP tokens into the staking contract in exchange for stSYRUP, a participation token that entitles them to several benefits:

• Staking rewards: stSYRUP holders receive rewards in the form of additional SYRUP, coming from both inflation (5%/year) and buybacks funded by protocol revenue.
• Governance: only stSYRUP holders can participate in governance votes, reinforcing long-term commitment to the protocol.
• Liquidity & flexibility: users can withdraw their staked SYRUP at any time, with no lock-up period. stSYRUP increases in relative value over time compared to SYRUP, reflecting the accumulation of rewards.

The staking contract is decentralized, non-custodial, and has no lock-up period. Users can withdraw their SYRUP at any time while retaining their accrued rewards. Governance is conducted via Snapshot, where each proposal is subject to a vote by the stSYRUP holding community.

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Final Thoughts and Maple's Future Vision

Maple has experienced impressive growth in recent months, with its TVL climbing to $800 million. This growth reflects the increasing demand for high-quality yields on digital assets , especially among accredited investors. The launch of SyrupUSDC, which democratizes access to institutional yields for retail investors, has also significantly expanded its user base, further strengthening Maple’s leadership in onchain asset management.

One of the most notable milestones in this adoption was the announcement from fund manager Bitwise — which oversees a $12 billion portfolio — choosing to allocate into Maple.. Another major step is Maple’s planned integration with the Convergence Chain, a project led by Ethena that aims to bridge traditional and decentralized finance.

Since the approval of Bitcoin ETFs in January 2024, traditional finance has shown growing interest in the blockchain world. This new era brings unprecedented investment opportunities, like Bitcoin, along with undeniable advantages in terms of security, transparency, and transaction speed. Blockchain is emerging as a superior financial technology that traditional finance is only just beginning to explore.

However, this finance 3.0 cannot rely on the same principles as traditional DeFi protocols — such as full openness and anonymity. It will inevitably need to incorporate regulatory requirements, including KYC procedures and financial analysis, as is already the case in the traditional financial system. This is where Maple stands out, leveraging the benefits of blockchain to offer an improved user experience, enhanced market liquidity, and broader access to financial services. Maple still maintains a strong connection to the traditional financial world by ensuring regulatory compliance and facilitating institutional access to the decentralized ecosystem.