Lending platform Maple Finance has become the latest crypto company to face liquidity-related issues.
The platform posted an update on its website in a post titled “Managing Liquidity For Lenders And Borrowers”, saying: “There is insufficient cash in pools”.
It is known that liquidity problems on the DeFi platform began to appear this week. Although Maple Finance said that as the loans mature in the coming weeks, an increase in available capital in funds repaid by borrowers will allow lenders to withdraw funds.
The company also said that the ability of lenders to earn interest and rewards of Maple tokens (MPL) will not be affected.
After all withdrawal requests are processed, team representatives will begin to issue loans again. Orthogonal Trading, a crypto hedge fund, has admitted that there is a $10 million loan to Babel Finance from the Orthogonal USD Coin team on Maple.
Accordingly, Babel halted withdrawals and entered into a repayment agreement.
The crypto world has been under severe pressure with the recent market crash. Many platforms are facing a liquidity crisis, pushing these companies to the brink of bankruptcy. Even cryptocurrency miners are struggling. Accordingly, Canadian Bitcoin miner Bitfarms had to sell 3,000 BTC to improve liquidity for the company.
It will take time and energy for industry players to reshape themselves and weather the market downturn without further damage.
However, the above developments will always be a part of the crypto market, although the rapid growth of the past few years has certainly contributed to the failure of these companies.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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