• M11 Credit has resumed crypto lending on the decentralized credit marketplace Maple Finance.
• The new lending pool will have an expected annual yield of 10.75% in the stablecoin USD coin (USDC) with a 60-day duration.
• Liquidity pools managed by M11 Credit suffered $36 million of defaults following FTX’s bankruptcy in November last year.
M11 Credit Restarts Crypto Lending
Blockchain-based financing firm M11 Credit has resumed crypto lending on the decentralized credit marketplace Maple Finance, offering an expected annual yield of 10.75% in the stablecoin USD coin (USDC). The pool parameters include single borrower exposure and a duration of 60 days, with liquidity on demand afterwards.
Enhanced Underwriting Framework
M11 has implemented an enhanced underwriting process and credit policy, as well as real-time monitoring tools for both on and off-chain assets. The firm has also appointed a new Head of Credit to oversee its lending business after the FTX fallout.
Selection Criteria for Borrowers
The new liquidity pool will only be available to selected clients such as premier low-latency trading firms with market-neutral strategies that have a strong and established track record of borrowing from M11 Credit pools.
FTX Bankruptcy Aftermath
Following FTX’s bankruptcy in November last year, several loans saw missed payments and were restructured, resulting in $36 million worth of defaults across M11’s liquidity pools. Orthogonal Trading was accused of misleading M11 and Maple Finance by misrepresenting how much it had lost in the collapse, leading to losses up to 80% for investors in affected pools.
M11 Credit has resumed crypto lending services on Maple Finance with improved risk management framework and credit policy to ensure secure borrowing experiences for users going forward.