Publications

Maven 11 joins Maple Finance as a pool delegate

05 July 2021

Maven 11 Capital is proud to announce that we will become the second pool delegate in Maple Finance. Maple Finance is a decentralized corporate debt marketplace. In TradFi this market represents well over 10 trillion USD which Maple is aiming to revolutionize. In this blog we will argue why we are investing in Maple and why taking the pool delegate role is crucial for the protocol.

There are plenty of lending and borrowing protocols in the current DeFi ecosystem. However, most of these are less suitable for very capital intensive businesses due to their high collateralization requirements. Various other projects, some of which we are backing, aim to reduce collateralization for other markets (e.g. consumers). However, none of these have set out with corporate users as their target audience.

We are excited to partner with Maven11 as Maple’s second pool delegate. Institutional lending will be vitally important in expanding the digital economy and Maple Finance pool delegates will play a key role in achieving this vision. The Maven11 team brings a combination of exceptional expertise, a rock-solid reputation and deep relationships which positions their lending pool for success” - Sid Powell co-founder Maple

Maple did exactly that. They build a product that focuses on the needs of institutional borrowers. Their unique structure allows for undercollateralized lending because it involves pool delegates that review loan applications, essentially acting as “credit agents'' for their respective pool. In turn, these pools get funded by liquidity providers that can see the track record of the previous borrowers. We believe that this novel protocol design will also become very competitive with time, as more and more pools will start to coexist together and compete in terms of interest rates and creditworthiness of its borrowers.

We are keen to take on the role of a pool delegate to help to grow Maple. We think that investors, or VC funds within DeFi, should not just provide capital but more importantly, actively work to grow the protocols and communities they back. Therefore, the pool delegate role at Maple is a natural fit for us. Additionally, we, as a fund, may have lacked credit assessment experience, thus we have hired an additional advisor with traditional finance credit experience to help us in being the most diligent pool delegate out there.

There is major room for improvement in terms of capital efficiency in the lending space for institutional capital. We firmly believe in working alongside founders, borrowers and lenders, not just facilitating capital, but venturing into new ways of improving capital markets. As a Maple Finance pool delegate, we plan to open up our lending pool to the wider decentralized finance community to encourage all users to join the Maple ecosystem.” - Balder Bomans, Managing Partner Maven 11

Over the past months of working together, we have come to know the team behind Maple as one of the strongest teams in the space. Their execution has been spot on and we are proud to be backing them. We are looking forward to growing our pool, Maple Finance, and DeFi at large.