The current crypto market Dump has had a big impact on the bitcoin industry. A number of platforms are in risk of failing due to liquidity constraints on a number of them.
Even crypto mining firms are having difficulties, as seen by the recent sale of 3,000 BTC by Canadian company Bitfarms in an attempt to enhance liquidity.
After Celsius, Maple Finance is facing Liquidity issues. Company said in the report that “There may be situations when there is not enough cash in pools.”
Since lenders may continue to take funds notwithstanding Maple Finance’s expectation that when loans mature, they will have more cash to work with, lenders can continue to withdraw funds from their pools.
It was also mentioned that there would be no impact on lenders’ ability to get incentives in the form of Maple Tokens (MPL).
Orthogonal Trading, a cryptocurrency hedging firm, has told Babel Finance that the Orthogonal USD Coin pool on Maple has acknowledged a loan of $10 million.
Withdrawals have been halted and Babel’s debt repayment plan has been made public. The delegates of the pool will begin granting loans after all withdrawal requests have been met.
The temporary loss protection mechanism incorporated in Bancor’s Decentralized Finance (DeFi) protocol has also been deactivated as a consequence of the poor market circumstances. This was a key feature that set the platform apart.
MakerDAO has temporarily stopped accepting DAI deposits for the same reason. If claims are correct, Three Arrows Capital is reportedly already insolvent.
For firms to recover from the recent dip in the market and prevent more harm, it will require some time and inventive thinking.
This isn’t a new phenomenon in the cryptocurrency market, but the rapid growth of the industry over the last few years has made it more noticeable.
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