M11 Credit has announced the resumption of its crypto lending services on Maple Finance, a blockchain-based credit marketplace. Along with this, they have appointed a new head of credit and have upgraded the risk management and credit underwriting process. This announcement comes after the slump of the crypto exchange FTX in November, leading to a major default of $36 million and other loans missing payments from pools managed by M11 Credit.

Apparently, one of the largest borrowers of M11 pools, Orthogonal Trading allegedly misled M11 Credit and Maple by misrepresenting its financials and losses incurred by FTX. This resulted in investors incurring a loss of up to 80% on their deposits. In light of this incident, M11 Credit increased their team which is responsible for crypto lending and also beefed up their credit policy and underwriting protocols, including the implementation of real-time monitoring of both off-chain and on-chain assets.

The new USDC pool is a permissioned stablecoin pool where investors must undergo a KYC check to be able to lend funds. The first borrower of this pool is Flow Traders, who acquired a 3.5 million USDC loan with a 60-day term for 12.5% annualized interest rate. Furthermore, M11 Credit is also collecting funds for this pool to lend to a “highly reputable and creditworthy market-neutral trading firm” that has been verified after extensive vetting.

After the events of November, there have been signs of a turning point for crypto lending as the unstable market volatility and scarce lending have presented an opportunity for M11 Credit. They have anticipated that with the impending Ethereum Shanghai upgrade, ongoing regulatory pressures and persisting macro risks, there will be an elevation in market volatility that could prove beneficial for the demand of trading capital.



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