Maple Finance records a loss of $7M at end of 2022

As it prepares to shut down its lending pools on Solana, Maple Finance reported a net loss of about $7 million at the end of the fourth quarter of 2022, as reported by Cryptoslate.

According to Cryptoslate, as a decentralised credit market for institutional borrowers and lenders, Maple Finance was introduced in May 2021. The lending protocol has provided business loans totaling more than $1.9 billion since it was established.

However, the prolonged bear market and FTX collapse’s knock-on effects have diminished borrowers’ interest in its loan offerings.

Cryptoslate further noted that the lending protocol reported in Maple’s Q4 2022 Treasury report that it originated about $87 million across 23 new loans, a 67% decrease from its record of $262 million in the third quarter. As a result, Maple ended the fourth quarter with $58 million in total active liquidity as opposed to $326 million at the start of the quarter.

According to the Q4 report, Maple has generated $5 million in revenue while spending $12.1 million in total expenses since its inception. As a result, by the end of 2022, the cryptocurrency lender had incurred a net loss of about $7 million.

(With insights from Cryptoslate)

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