Introduction

Maple Finance recently unveiled Syrup, a novel protocol within the decentralized finance (DeFi) domain, aimed at providing institutional yield to users without requiring permission. This initiative follows Maple Finance's encounter with challenges stemming from the FTX-Alameda collapse, leading to the termination of ties with Orthogonal Trading in December 2022.

The Syrup Protocol

Syrup offers users unrestricted access to secure institutional lending services. By depositing Circle USD (USDC) on the platform, users obtain syrupUSDC liquidity pool (LP) tokens, enabling them to earn yields.

According to Maple Finance's announcement, fully collateralized loans will be extended to major crypto institutions to acquire the generated yield. This move has raised skepticism within the community, particularly in the context of the FTX-Alameda crisis.

Community Response

Maple Finance faced loan defaults due to its association with entities linked to FTX, like Orthogonal Trading, which defaulted on significant loan amounts, resulting in losses for lenders on the platform.

Several community members expressed varied opinions regarding the launch of Syrup. Questions arose about the necessity of introducing a new token, while others harbored distrust due to unresolved matters related to FTX-Alameda.

One community member highlighted concerns regarding Maple Finance's approach in matching AML KYC-less lenders with onboarded borrowers, emphasizing that the burden appears to be shifted to borrowers in a permissionless pool scenario.

MPL Token Migration

Maple Finance also introduced the SYRUP token, enabling holders to stake and engage in the ecosystem. Holders of Maple Finance's native MPL token can seamlessly migrate to SYRUP on a one-to-one basis without facing additional dilution.

One user questioned the need for a new token and the migration of MPL, proposing the utilization of MPL to empower the new protocol instead.

However, Syrup.fi clarified that the MPLv2 token was merely a denomination choice and addressed migration concerns.

Maple Finance is set to host a webinar on June 4 at 7 pm UTC to delve into the intricacies of the Syrup launch.