Earn 46% on Maple Finance by DefiDad

Before we get started, a reminder that this is not a recommendation or endorsement to buy any tokens mentioned in this tutorial.

One of the holy grails of DeFi is believed to be undercollateralized lending. The most adopted DeFi applications to date, have been money markets which require borrowers to collateralize assets worth more than the total value they wish to borrow. With over $25B across the estimated $81B TVL in DeFi according to DeFi Pulse, protocols like Compound and Aave have grown to be giants of liquidity, given their permissionless, trustless applications for lending and borrowing capital. 

However, in modern lending markets, creditors such as banks will assess borrower creditworthiness by using credit checks and other due diligence, allowing such banks and other lenders to make loans to those who promise to pay back over time with interest, without requiring more collateral upfront.

In DeFi, there is no law other than code to assure lenders they will be paid back on time. For this reason, DeFi money market protocols were designed the last few years to require more collateral be deposited upfront and if the LTV (loan-to-value) ratio is not maintained, smart contracts will liquidate the deposited collateral and use it to pay back lenders. 

Maple Finance--Undercollateralized Loans for Institutional Borrowers

In the last year, an institutional capital marketplace built on Ethereum was launched called Maple Finance. Maple Finance expands the DeFi economy by providing undercollateralized lending for institutional borrowers and fixed-income opportunities for lenders. 

One of the benefits is Maple offers borrowers decentralized, transparent and efficient financing all on-chain. For lenders, Maple is a sustainable yield source with pools of crypto’s premium institutional

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