Decentralized Credit Protocol Maple It has been reported There were no bad debts as platform users positions were not settled during the price crash on February 2nd.
Users also reported that they deposited $10 million to strengthen their margins over the period to avoid liquidation events. Over $10 billion was liquidated in a day as Ethereum (ETH) temporarily fell into the $2,000 low-cost area, with major cryptocurrencies experiencing a 10% to 30% decline.
Maple is a decentralized credit protocol in which users deposit assets in a pool that acts as a credit line for an institution. According to RWA.xyz dataMaple managed a $2.5 billion loan as of February 7th.
The report states that maple blue chips and high yield protected loan products remained completely over-financed during this volatility, resulting from margin calls issued before collateral levels became important. I emphasized doing so.
During the massive liquidation on February 2nd, a high-yield protected pool saw $2 million inflows.
Maple's Blue Chip Secured Lending Pool accepts only Bitcoin (BTC) and ETH as collateral held by qualified custodians. Meanwhile, a high-yield protected pool will achieve higher returns by underwriting loans backed by specific digital assets and reinvesting collateral for staking or security loans.
Syrup is a pool that presents more risks as it combines both strategies to increase yields. Pool issued a margin call on 35% of the loan, bringing in a new deposit of $5 million.
The borrower posted an additional $7.4 million collateral and repaid the $7.4 million loan, enhancing the stability of Maple's loan book.
As of February 6th, the overall pool collateral level averaged 165%.
The report also highlighted that yield options available in the defi protocol have been withdrawn, and that the safe continues to provide double-digit annual revenue.
Aave handles $210 million liquidation
According to Chaos Labs, Aave is operating as intended during the major liquidation on February 2nd. dataMoney Market successfully handled the $210 million liquidation while maintaining additional bad debts.
Chaos Labs highlighted that the Aave liquidation mechanism ensured that the location was resolved efficiently. Most liquidation occurred on Ethereum Main instances, minimizing protocol loss.
Despite the size of the liquidation, Aave's existing non-performing loans fell 2.7% due to a decline in the value of its debt assets.
It is mentioned in this article
