Maple Finance's "Lend + Long": Earn Yield, Gain Bitcoin Exposure for Institutions
Maple Finance, a decentralized lending platform, is targeting institutional investors with a novel new product called "Lend + Long." This on-chain structured yield product offers a unique way to gain exposure to Bitcoin's potential upside while mitigating downside risk by using revenue generated from a high-yield lending pool to purchase Bitcoin call options.
Capturing Bitcoin's Upside Without the Volatility: How "Lend + Long" Works
"Institutional investors are looking for a way to capture Bitcoin's upside without the associated volatility," said Maple CEO Sid Powell in a statement. "Lend + Long" aims to do just that. The product leverages Maple's "High Yield Secured Pool," which accepts a broader range of cryptocurrencies as collateral, including some riskier altcoins, thus offering lenders higher interest rates.
The yield generated from this pool is then used to purchase Bitcoin call options. This strategy allows investors to benefit from potential Bitcoin price increases without directly owning the underlying asset. All loans within the high-yield pool are overcollateralized, meaning borrowers must provide collateral exceeding the loan amount, adding a layer of security for lenders. For those seeking a more conservative approach, Maple also offers a "Blue Chip Secured" pool, which only accepts Bitcoin and Ether as collateral.
Maple's Evolution: From Lending Pools to a Diversified Platform
Launched in 2021, Maple Finance has approximately $110 million in total value locked (TVL) across its platform. The company initially focused on connecting lenders and borrowers through pools managed by third-party credit firms. However, it has since expanded its offerings, launching Maple Direct in 2023 to underwrite and issue over-collateralized loans in USDC and USDT directly to crypto businesses. Maple has also ventured into the realm of tokenized Treasuries.
SYRUP and Buybacks: Expanding the Maple Ecosystem
More recently, in 2024, Maple introduced the SYRUP token for its retail-focused platform, Syrup.Fi. The team is even considering using protocol revenues for monthly buybacks of SYRUP, which would then be distributed as rewards to stakers.