Crypto loan Maple Finance recently warns of insufficient cash” in the middle of market turbulence

Crypto loan Maple Finance recently warns of insufficient cash” in the middle of market turbulence

Maple Finance is the latest in the area of crypto loan allocation, which is exposed to liquidity pressure, said the crypto loan platform on Tuesday.

"There can be cases in which there is not enough cash in the pools", the company wrote in a Note Tuesday.

Maple Finance lenders must wait for the repayments of the borrowers, the company said.

"If the loans are due in the coming weeks, the repayments of the borrower will increase the available capital in the pools, which can then be withdrawn by the lenders," says the message. "Lendingers will continue to earn interest and MPL [Maple token] rewards during this time."

delegates, who manage the liquidity pools on Maple, plan to serve all payments in the "coming weeks", similar to how the lender handled payments around the time of the collapse of Terra USD in May, said a spokesman for Maple Finance.

"Due to the protocol, cash can only be withdrawn if it is available - we have not frozen withdrawal," said the spokesman. "Cash continues to flash out of deposits and repayments, so it should compensate for in the near future.

Maple Finance's credit pools and activities are open to the public, the company shared with Note . According to the current status, Maple Finance has awarded more than borrowed. The company report just over $ 1.5 billion on loans and about $ 929 million.

The message comes while investors continue to speculate about the future of Babel Finance after the crypto loan has disclosed liquidity pressure and stopped withdrawal after others have fallen apart in this area, including Celsius and Three Arrows Capital.

Orthogonal Trading, a cryptocurrency hedge fund, has recognized that there is a 10-million dollar-daLhen from orthogonal USD on the coin pool on los.

"Orthogonal has been in daily contact with Babel management since Babel has set up the payouts and focuses on protecting the interests of the lenders," said Maple Finance in A Twitter Tuesday.

The warning of Maple comes because the members of the cryptocurrency industry are annoyed about potential infection risks that will only increase if the liquidity pressure continues and the lenders try to avoid runs.

"There is no simple solution, but more robust liquidity is a good starting point for crypto institutions that are under stress," said Timo Lehes, co-founder of the blockchain infrastructure company Swarms. "The US Federal Reserve will carry out its youngest banking test this week, which is a timely memory that this liquidity can only be organized with a kind of supervision."

The situation underlines the need for a stronger regulatory supervision of the industry, added Lehes.

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The contribution Crypto Lender Maple Finance last warns of "Inadequate Cash" in the middle of market turbulence is not a financial advice.