crypto strategy

Maple Finance prepares to return with a new cash pool of $100 million for tax claims with a yield of 10%

Blockchain-based credit market Maple Finance on Wednesday unveiled a new trade receivables liquidity pool, the protocol’s first step in a new strategy to bring traditional financial investments onto the blockchain.

New USDC The stablecoin pool will allow companies to receive cash advances with a discount on their tax refunds and funding programs such as Employee retention credit (ERC) of the Internal Revenue Service (IRS), the US federal tax administration.

Eligible businesses pledge their receivables as collateral for the loans, and investors in the liquidity pool will get a return once the IRS transfers the credit.

The target return of the cash pool is 10% annualized, with a minimum investment of USD 500,000 in USDC and a lock-up period of 45 days. The pool will be open to accredited investors such as institutional asset managers and decentralized autonomous organization (DAO) of the treasuries, which must comply with the know your customer (KYC) and anti-money laundering controls.

The pool can grow to $100 million and AQRU will consider lowering the barrier to entry once it reaches a certain size.

Maple provides blockchain-based technology to set up and maintain pools. London-based public company AQRU will manage the pool – the so-called pool delegate – overseeing candidate companies and managing the loan portfolio. The originator of the loan from the pool is Intero Capital Solutions, a finance company specializing in receivables financing, which will use funds borrowed from the pool to lend to qualified companies in its network.

The new pool says Maple is moving away from unsecured crypto lending to crypto trading firms, resulting in a $52 million bad debt on the protocol and up to 80% loss for some liquidity providers. These losses came after the dramatic collapse of FTX toppled some of the the biggest borrowers.

“Receivables financing is one of the oldest commercial financing products,” and AQRU hopes to gain a “first-mover advantage” by bringing this traditional investment strategy to crypto investors looking for conservative investments to earn a return, Phil Blows, managing director of AQRU, told CoinDesk in an interview.

In September, with the crypto winter weighing on the industry and raising capital becoming difficult, Maple launched a credit pool for struggling bitcoin miners. The pool has not yet taken out his first loan.

Last month, Maple unveiled a major overhaul of its protocol, ending most of its active loan pools.

Read more: Maple Finance’s $54M Acid Debt Shows the Risks of Collateralless Crypto Lending

Real-world assets in crypto

Maple co-founder and CEO Sidney Powell said the AQRU-managed pool is the first in a series of pools to come with return-generating strategies adopted from traditional finance. Maple will soon unveil pools that invest in US Treasuries and insurance refinancing, according to the protocol representative.

These new pools come as crypto and traditional capital markets are increasingly blended on decentralized finance (DeFi) platforms that tokenize real-world assets (RWA) on the blockchain.

Analysts have predicted that yield-generating RWAs such as government bonds and corporate credit will be one of the hottest trends in crypto this year.

Earlier this month, the DeFi protocol Ondo Finance tokenized funds announced for US Treasuries and high-yield corporate credit offered to institutional investors.

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