Maple Finance, a blockchain-based lending protocol, has launched its latest cash management pool that invests in one-month U.S. Treasury bills. The new pool offers investors an annual yield of 3.2% on stablecoin deposits, with the current one-month Treasury bill rate standing at around 3.7% minus the 0.5% management fee. The pool functions as a special purpose vehicle (SPV) that collects stablecoins from investors and lends them to Room40 Capital, a crypto hedge fund, to invest in Treasury bills. This pool allows accredited investors, crypto firms, and decentralized autonomous organization (DAO) treasuries to earn a yield on idle stablecoins with low risk, given that short-term U.S. Treasurys are considered among the safest investments.
According to Sid Powell, CEO and Co-Founder of Maple Finance, the pool lets stablecoin holders focus on their core business activities while Maple Finance takes care of the technicalities. Powell said, “The access to banking and deposit services for startups has narrowed so the importance of having this service onchain cannot be overstated. We’re really proud to bring this to market at the perfect time with partners that share the same commitments.”
Maple Finance has assured investors that there is no lockup period required for deposits before withdrawal, making the pool ideal for cash management in stablecoins. The entirety of pool assets are held within a distinct SPV that is under the custody of a regulated prime broker. Furthermore, lenders are granted complete recourse overall assets. The onboarding process is quick, taking only 10-15 minutes to complete, with interest accruing immediately upon deposit and no lock-up period. Lenders can see the borrower’s portfolio stored with a regulated broker in real-time and can view interest statements at any time.
Currently, Maple Finance operates on the Ethereum and Solana blockchains, originating approximately $1.9 billion in loans since its inception. However, due to their status as securities, derivatives based on U.S. Treasury bills cannot be sold to U.S. investors unless first registered with the Securities and Exchange Commission or exempted from registration requirements.
The new pool is expected to attract a wide range of investors, including those who are looking for a low-risk investment option that offers a higher yield than traditional savings accounts. The ability to earn interest on idle stablecoins will also be attractive to those who are looking to maximize their returns while minimizing their risk. With the launch of this new pool, Maple Finance is positioning itself as a leader in the blockchain-based lending space, providing investors with innovative and secure investment options.
Overall, the launch of Maple Finance’s Treasury Bill Pool is a significant development in the world of blockchain-based lending. The pool offers investors a low-risk investment option with a higher yield than traditional savings accounts, making it an attractive option for those looking to maximize their returns. The fact that there is no lockup period required for deposits before withdrawal is also a major selling point, as it allows investors to have more flexibility with their funds. With the success of this new pool, Maple Finance is likely to continue to be a major player in the blockchain-based lending space.