Syrup is connected with digital asset platform Maple, but while Maple is aimed at institutional investors, Syrup allows retail users to earn yield and Drip points rewards through depositing either USDT or USDC stablecoins, with commitment-free deposits, while there are higher points rewards available on time-locked deposits.
Maple Finance has established a strong reputation as a digital asset lending platform aimed at institutional investors. That makes it a valuable platform for accredited investors, but for individual retail investors there is Syrup. This platform is powered by Maple, and allows anyone to earn from the yield generated through Maple’s lending services.
Maple itself utilizes a strict underwriting procedure and conducts careful collateral analysis, and also requires its borrowers to complete a KYC process, so there is a solid foundation in place that Syrup then links up with.
In this guide, we’ll take a look at the Syrup platform and the kinds of rewards that are on offer, and walk through how to make use of its services. For full details about the protocol, please check the official Syrup documents, and as always, be aware of the risks involved with DeFi, which include: smart contract vulnerabilities, stablecoin depegs, frontend attacks, and the possibility of systemic risks across DeFi and crypto.
Tokens and Rewards
Syrup operates on Ethereum, and to deposit and earn, you need to use stablecoins–either USDC or USDT. The platform has its own token, SYRUP, which is the governance token for the Maple DAO (the organization that governs both Maple and Syrup), and there are also platform rewards points called Drips which, once earned, will then later be convertible into SYRUP tokens.
Syrup Platform Details
By depositing to Syrup, you will be providing liquidity for collateralized lending in return for fixed yields. That means you need a good level of confidence in the platform itself, and a look at the core details shows that the ratio of loan collateralization right now stands at 174.2%, while SOL makes up the highest proportion of collateral currently held.
Also note that the Syrup protocol has a current TVL of around $247 million, reflecting its solid user growth.
How to Deposit and Earn on Syrup
Currently, you can earn 21.3% APY by depositing to Syrup. That’s made up of a weighted APY of 14.3%, along with an average Drips reward of 7%, although actually, a slightly higher reward can be gained from using USDC–you’ll get 13.5% from USDT, or 14.5% from USDC.
To lock in these rewards, you need to visit the app, connect your wallet–making sure that you’re holding USDT or USDC–and then click on the Lend button in the left-hand navigation bar, and make sure you’re then on the Deposit tab.
From here you can review all the details of the deposit, so you can check the APY, the TVL, and note also the Liquidity figure. This last part is currently showing two days, meaning that withdrawal processing will take this amount of time, although this period can potentially extend up to 30 days.
You can select USDT or USDC, enter the amount you want to deposit, and you’ll also need to choose from one of the three commit options. The default selection is no commit, which means you can withdraw at any time, but you won’t receive any extra bonus rewards….
