Crypto lender Celsius has become the first centralized finance platform to leverage Maple Finance’s infrastructure and run a lending business using decentralized finance (DeFi), the Maple Finance said in a blog post on 24 February.
According to the announcement, Celsius has committed $30 million worth of wrapped Ethereum (wETH) to Maple Finance’s liquidity pools with the goal of providing capital to fast-growing crypto institutions. Celsius has now entered institutional DeFi as a pool delegate, and issue and manage undercollateralized loans to borrowers based on their profitability. The CEO of Celsius, Alex Mashinksy, said in a statement:
“We are excited to use Maple’s DeFi rails to provide efficient access to capital for blue-chip crypto institutions. Maple’s lending infrastructure means we can move quickly and securely into the space. Celsius will draw on its deep experience in underwriting and look forward to welcoming new borrowers this year and beyond.”
This will be the first wETH pool on Maple Finance — which has so far provided liquidity only in USDC — enabling investors to utilize the asset across different trading components. Celsius is also joining BlockTower, Orthiginal Trading, Maven 11 Capital, and Alameda Research as a Pool Delegates on Maple.
While Celsius’ pool is only starting at $30 million, it will not be surprising to see its value increase in the next few months. Alameda Research became the first to launch a pool in the form of a syndicated loan on Maple back in November, and since then has grown to over $100 million.