Maple Decides to Retire Maple Solana to Reduce Operating Costs

Maple, an on-chain institutional lending platform, released its Q4 2022 treasury report on Wednesday, highlighting its reason for retiring Maple Solana. It also focused on the company’s revenue and expenses last year and the plans for the current year.

Wu Blockchain took to Twitter to share updated news on its Twitter handle.

Maple, an on-chain institutional lending platform, issued 87 million loans in the fourth quarter, far lower than the $262 million in the third quarter; in addition, it decided to retire Maple Solana to reduce operating costs. https://t.co/qsbHTIDdqD

— Wu Blockchain (@WuBlockchain) January 20, 2023

As per the report:

In Q4, we reduced planned operating expenses to increase our runway to 16 months in a zero revenue environment. Maple recalibrated its expense base by making the decision to retire Maple Solana, reducing headcount costs and refocusing department plans and budgets.

The company highlighted that its total liquidity decreased from $326M to $58M from Q3 to Q4, citing borrowers’ decreased appetite and lenders sitting on extra cash. With an uncertain macro situation and no income, Maple has also reduced its operating expenses to extend the runway to 16 months.

Since its inception in 2021, the company has garnered revenue of $5,031,463.75. In contrast, the expenses stand at $12,106,989, with the net loss amounting to $7,075,525. Most expenses were on legal, insurance, smart contract audits, and one-off costs.

The report states, “Whilst defaults in pools do not directly impact Maple, they do reduce the fees received by the Maple Treasury. The Maple Treasury receives revenue by way of a ‘Platform Fee’ paid monthly by borrowers until a loan matures, equal to 66 bps annualized. The majority of loan originations were recorded in October, ahead of the FTX collapse. Revenues in Nov-Dec increased from the previous quarter as the recurring Platform Fee model came into play, but remained suppressed when compared to the first half of the year.”

Maple has planned to focus on diversifying lending opportunities, attracting reputable delegates, and building cutting-edge technology on Ethereum while positioning itself to sail through the market conditions in 2023.

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