The DeFi platform Maple Finance introduced stricter loan specifications for borrowers in the platform, in order to limit all hidden counterparty risks after noting that the cryptocurrency market was broken in 2022.
CEO Sid Powell indicated that, according to the new regulations, the borrower must now sign a legal and regulatory agreement, including the financial accounts submitted for independent audit every year, the monthly report summarizing its financial data and the key points of its balance sheet.
In addition, the borrower also needs to apply for the registration of credit risk data information platform Credora, which provides real-time dynamics for the borrower and helps it to define the risk level accumulated by the borrower in various cryptocurrency trading centers.
Maple Leaf financial industry connects industry leaders with borrowers, and the bear market of stock market and the collapse of cryptocurrency price are also reflected on the platform. DeFi's value fell from 153 million dollars in June 2022 to the bottom of 22.5 million dollars.
In addition, the bankruptcy of Three Arrows Capital and the bankruptcy of Celsius Network, a data supporting credit company, promoted Maple Finance to introduce some new strict guidelines.
CEO Powell further added: "This view will be very strong for some intermediate borrowers with 3AC leverage ratio. However, improving the reporting regulations has improved the ability to monitor the borrower's health in a volatile industry."
In addition, he indicated that up to now, Maple Finance had already locked up 10 million dollars of the 1.8 billion dollars of contract breaking generated on this platform. Powell further responded that Red Maple did not give all the loans for Sanjian Asset.
At this stage, Maple Finance has already invested in a series of customers, including Genesis Trading, Alameda Research and Winter.