What Is Maple (MPL)?
MPL is the native token of Maple, which is an institutional crypto-capital network. In essence, it allows users to lend or borrow capital. Make sure to take a look at the Maple price chart above to see the live MPL price.
The Maple network runs on Ethereum and Solana. With the help of Maple, credit experts can manage and develop their crypto lending businesses with ease, as well as connect funds from institutional and private lenders to blue-chip companies.
Users can lend their capital by depositing it into Liquidity Pools, this way becoming Liquidity Providers (LPs). Their pooled capital can then be used by real-world businesses. By lending their capital, LPs are able to generate passive income. The returns they receive depend on the sum of MPL rewards and interest rates.
Once LPs lend their capital, businesses can borrow it in a transparent manner. Besides, without worrying about liquidations or margin calls, users can borrow capital in an undercollateralized way by utilizing their reputations as leverage. Just note that Maple is available solely for institutional and corporate borrowers.
Each Liquidity Pool is overseen by a Pool Delegate. Pool Delegates are in charge of performing diligence, liquidating collateral, and negotiating loan conditions with borrowers. To assess the loan's terms, Pool Delegates consider a borrower's standing, experience, and past performance. To guarantee the quality of liquidity pool administration, Pool Delegates must go through a rigorous vetting process.
The Purpose of MPL Tokens
As mentioned before, the native coin of the Maple crypto project is MPL. Its primary goal is governance. Owners of Maple coins have the opportunity to influence decisions considering the further development of the Maple project.
Besides that, MPL tokens can be compounded by committing them to a smart contract. For doing that, MPL holders receive xMPL tokens. These tokens are beneficial for holders because Maple buys back MPL using establishment fees and transfers it to the owners of xMPL on a monthly basis.
The xMPL tokens can also be added as Pool Covers to any Lending Pool. This way they act as a reserve for Lending Pools in the case of defaults. Defaults occur when necessary interest or principal payments are not made in time.
The max supply of MPL tokens is 10 million. If you plan to buy Maple coins, note that the MPL price is liable to change. The main reason for that is the volatility of the overall crypto market, which has an effect on the Maple price, just like it has an effect on other crypto assets.
