Syrup Finance and the replacement of MPL with the new SYRUP token are both happening at the same time in Maple.
Syrup, a new DeFi protocol, enables users to permissionlessly lend USDC to institutions. Maple Finance, an uncollateralized lending protocol for institutional participants, announced.
Users may earn interest on the platform by depositing USDC and receiving syrupUSDC liquidity provider (LP) tokens, according to Maple, who spoke with The Defiant. The biggest crypto institutions were able to get loans using the USDC placed into the platform.
“[Syrup] will unleash yield prospects that don’t exist, and assist to democratize institutional private lending,” Joe Flanagan, co-founder of Maple Finance, told The Defiant. “The scope of the DeFi service is expanding.”
On the other hand, DefiLlama reports that Maple Finance has $45 million in TVL at the moment. Since reaching a high in May 2022, the number of users who have borrowed $100 million from the protocol has dropped significantly, falling by 80%.
Nevertheless, after hitting rock bottom in early 2023, the protocol has been seeing a rebound in TVL and loan activity.
In an effort to entice consumers, Syrup will provide an early adopter points program. By adding USDC to the protocol early on, users will earn “Drips” as a reward.
According to Flanagan, the first users of the protocol will be the recipients of an impending airdrop. In order to promote “growth incentives,” he said, the Maple community just decided to add one million tokens, or 10%, to the overall supply.
Maple aims to achieve a yearly return of up to 15% for users who lock their stablecoins for up to six months.
Additionally, Flanagan brought up the fact that the new SYRUP coin is launching today and will replace Maple’s MPL token. SYRUP will allow MPL holders to switch to it at no cost. SYRUP’s inflation rate for the first three years will be 5% each year.
Syrup will center on Real World Assets (RWAs), a storyline that is currently popular in the crypto sector. As more and more RWAs join the blockchain, our goal is to become the premier platform for highly liquid assets.
After an initial enrollment period of two weeks, Syrup will provide an early access window of four to six weeks.
Also Read: The Mt. Gox Bitcoin Exchange transfers $9.6B
