Decentralized credit score protocol Maple reported that not one of the platform customers’ positions have been liquidated throughout the Feb. 2 value crashes, leading to no unhealthy debt.
It additionally reported that customers deposited $10 million to bolster their margins over the interval to keep away from liquidation occasions. Over $10 billion was liquidated in a single day, as Ethereum (ETH) briefly dropped into the low $2,000 value space and main cryptocurrencies skilled declines starting from 10% to 30%.
Maple is a decentralized credit score protocol through which customers deposit belongings right into a pool that acts as a credit score line for establishments. Based on rwa.xyz knowledge, Maple managed $2.5 billion in loans as of Feb. 7.
The report highlighted that Maple’s Blue Chip and Excessive Yield Secured Lending merchandise remained absolutely overcollateralized throughout this volatility, attributing this to margin calls issued earlier than collateral ranges turned vital.
The Excessive Yield Secured pool noticed $2 million in inflows throughout the huge liquidations on Feb. 2.
Maple’s Blue Chip Secured lending pool solely accepts Bitcoin (BTC) and ETH as collateral, held by certified custodians. In the meantime, the Excessive Yield Secured pool achieves increased returns by underwriting loans backed by particular digital belongings and reinvesting the collateral in staking or secured lending.
Syrup is a pool that mixes each methods to spice up yields, consequently presenting extra dangers. The pool issued margin calls to 35% of its loans, which led to $5 million in new deposits.
Debtors posted a further $7.4 million in collateral and repaid $7.4 million in loans, strengthening Maple’s mortgage e book stability.
As of Feb. 6, collateralization ranges throughout swimming pools averaged 165%.
The report additionally highlighted that yield choices obtainable in DeFi protocols have been withdrawn whereas their vaults continued to ship two-digit annual returns.
Aave processes $210 million in liquidations
Aave additionally operated as supposed throughout the giant liquidations on Feb. 2. Based on Chaos Labs knowledge, the cash market efficiently processed $210 million in liquidations whereas sustaining zero extra unhealthy debt.
Chaos Labs highlighted that Aave’s liquidation mechanisms ensured that positions have been settled effectively. Most liquidations occurred on the Ethereum important occasion, minimizing losses to the protocol.
Regardless of the size of the liquidations, Aave’s current unhealthy debt decreased by 2.7% because of the declining worth of debt belongings.
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