Maple and Aave Remained Stable During Feb. 2 Market Crash, Processed Over $400M in Liquidations

Decentralized credit protocol Maple reported that none of the platform users’ positions were liquidated during the Feb. 2 price crashes, resulting in no bad debt.

Decentralized credit protocol Maple Finance has reported that none of its users were liquidated during the Feb. 2 crypto market crash.

The protocol reported on Feb. 6 that its users reacted to the price crashes and market liquidations by depositing $10 million to bolster their margins and avert liquidation events.

On Feb. 2, over $10 billion in crypto was liquidated as Ethereum (ETH) briefly dropped into the low $2,000 price range and major cryptocurrencies experienced declines ranging from 10% to 30%.

What is Maple Finance?

Maple Finance is a decentralized credit protocol where users can deposit assets into a pool that functions as a credit line for institutions. According to data from rwa.xyz, Maple had $2.5 billion in loans under management as of Feb. 7.

The protocol’s Blue Chip and High Yield Secured Lending products remained fully overcollateralized during the market volatility, which the report attributed to margin calls being issued before collateral levels became critical.

During the large liquidations on Feb. 2, the High Yield Secured pool saw $2 million in inflows.

Maple’s Blue Chip Secured lending pool accepts only Bitcoin (BTC) and ETH as collateral, which is held by qualified custodians. The High Yield Secured pool achieves higher returns by underwriting loans backed by specific digital assets and reinvesting the collateral in staking or secured lending.

Syrup is a pool that combines both strategies to boost yields, consequently presenting more risks. The pool issued margin calls to 35% of its loans, which led to $5 million in new deposits.

Overall, borrowers posted an additional $7.4 million in collateral and repaid $7.4 million in loans, strengthening the stability of Maple’s loan book. As of Feb. 6, collateralization levels across pools averaged 165%.

The report also highlighted that yield options available in DeFi protocols were withdrawn while their vaults continued to deliver two-digit annual returns.