Is Maple A Good Investment?

tl;drMaple Finance is an institutional capital marketplace that uses blockchain technology to deliver its services. Maple aims to expand the digital economy by providing the opportunity to gain fixed income for lenders and undercollateralized lending for institutional borrowers. The Maple protocol provided one of the most capital-efficient options for institutional borrowing and fixed income lending in the DeFi world. Maple Token (MPL) is the native cryptocurrency of Maple, which allows token holders to use its services and take part in governance. Over the last five months, Maple's market capitalization rank followed an overall positive trend, reaching the rank of 571 by the time of writing this post with more than $66 million value. Moreover, our data shows that Maple's Twitter account saw a growth of 57% over the past five months, surpassing 7k followers by the time of writing this post.
Is Maple A Good Investment?
Is Maple A Good Investment?
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Introduction

Maple Finance is an institutional capital marketplace that uses blockchain technology to deliver its services. Maple aims to expand the digital economy by providing the opportunity to gain fixed income for lenders and undercollateralized lending for institutional borrowers. The Maple protocol provided one of the most capital-efficient options for institutional borrowing and fixed income lending in the DeFi world.

Maple Token (MPL) is the native cryptocurrency of Maple, which allows token holders to use its services and take part in governance. MPL uses the ERC-20 token standard for standard token behavior and the ERC-2222 token standard for profit distribution of USDC from the Maple Treasury.

How Does Maple Work

To understand Maple's function, we should consider four aspects:

1. Lending on Maple

As a lender, you should take four steps to gain interest in your investment. First, you need to deposit USDC to the Lending pool. Instead, you will receive Maple Pool Token (MPT), which you should deposit to MPL Rewards Contract. After doing so, you will be able to claim your share of interest and MPL rewards.

2. Staking on Maple

A stake locker contract is defined in Maple to protect lenders under default conditions. People can earn interest by adding value to the stake locker. The added value is under the risk of liquidation to protect the lenders. Therefore, stakers receive a percentage of the interest generated by pool borrowers.

To become a staker, there are a few steps that need to be taken. First, you need to deposit USDC and MPL to a pool called "MPL: USDC Pool." Instead, you receive Balancer Pool Tokens (BPTs). Then, by depositing BPTs to lending pools, you get Pool Cover Tokens (PCTs). Finally, you can deposit your PCTs to MPL Rewards Contract and claim your share of interest and MPL rewards.

3. Borrowing on Maple

Maple offers one of the most capital-efficient options in the DeFi world. The institutional borrowers who are accepted by the pool delegates should take some predefined steps prior to receiving their loans. You can find these steps on Maple's website.

4. Pool delegates on Maple

Pool delegates earn two kinds of fees in return to their effort to find approval by Maple governance to launch a pool contract, attract capital, and commit loans:

  1. Pool-specific share of the interest gained from borrowers
  2. Share of the establishment fee taken upon drawdown of each loan associated with their pool


Financial Analysis

Over the last five months, Maple's market capitalization rank followed an overall positive trend, reaching the rank of 571 by the time of writing this post with more than $66 million value. Its price also saw a similar trend over the same period, leading to the price of $23.78 on October 25, 2021. However, Maple's liquidity score is 22% below the market's average score, making it relatively challenging to sell it bear markets.

Gaining public attention is a critical factor in determining the success of any project. Our data shows that Maple's Twitter account saw a growth of 57% over the past five months, surpassing 7k followers by the time of writing this post. However, its popularity on Telegram decreased by 1% during the same period.

Although it is too soon to talk about Maple's Return On Investment (ROI), if you had invested in Maple a month ago, you could enjoy a 57% profit on your investment.

You are saying that Maple is the best cryptocurrency to invest in?

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