Maple Finance says the collapse of two of its biggest customers, US-based Celsius and Hong Kong-based Babel Finance, has sent shockwaves through the marketplace.
Melbourne-based crypto start-up Maple Finance has found itself at the centre of the crypto meltdown as two of its biggest customers, US-based Celsius and Hong Kong-based Babel Finance, face bankruptcy.
“We don’t replace the credit risk team, though,” Mr Powell said. “When you’re lending in a pool you’re taking credit risk from the borrowers, that’s what lenders need to consider.”Earlier this year, Celsius, which boasted $US12 billion assets under management, contacted Maple’s co-founders Mr Powell and Joe Flanagan asking if the company could run one of the pools and lend out $US50 million.
and, coupled with its $US200 million exposure to terra, a widely held stablecoin that collapsed earlier that month, the fund went into freefall. Celsius, which billed itself as a “safe deposit-taking institution”, was not immune, and was suddenly under pressure to start giving depositors their money back. The company failed to meet its own margin calls several times.On a Sunday afternoon, the Celsius team contacted Maple asking to get their $US50 million back.
Like Celsius, Babel was another centralised lending business, and one of Maple’s few borrowing customers that was not a market maker.
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