Firm Pushes Maple Finance to Stop Lending to Alameda's Borrower Pool
The firm pushed Maple Finance to stop lending to Alameda's dedicated borrower pool earlier this year.
Orthogonal Credit's decision to close Alameda Research's dedicated borrower pool on Maple Finance in the second quarter of this year was based on the identification of "key weaknesses" in the due diligence process. This move highlights the importance of thoroughness in due diligence in order to avoid potential pitfalls.
Twitter's decision to conduct due diligence earlier this year was a smart move, as it allowed the company to identify a number of key weaknesses. declining asset quality and unclear capital policy were two of the main reasons for this decision. By addressing these issues head-on, Twitter can continue to grow and prosper in the years to come.
It is clear that the assessment led the firm to push Maple Finance to halt Alameda loans in May. This is after issuing $288 million in loans in a pool dedicated to Alameda during November 2021 and May 2022. It is evident that the firm is not happy with the performance of the loans in Alameda and has decided to take action.
We believe that the company's decision to sever its institutional lending relationship was a necessary part of proactive risk management. This decision was not taken lightly, but we believe it was the right decision for the company.
Further, we actively pushed to close the Alameda dedicated borrower pool on @maplefinance during 2Q22. Exposure to FTX is limited across our borrowers in USDC01. (2/x)
— Orthogonal Credit (@OrthoCredit) November 9, 2022
Looking forward, Powell is optimistic about the future of DeFi and believes that Maple will continue to play a leading role in the space. "I think DeFi is here to stay," he said. "It's become a vital part of the crypto ecosystem and I don't see that changing anytime soon.
We are pleased to see that the majority of our counterparties actually front-ran and took swift action over the weekend to cut exposure by proactively withdrawing assets from FTX. This shows that they are committed to protecting their clients' interests and ensuring that the markets function smoothly.
The Scope Protocol's analysis of Alameda's on-chain status paints a picture of a healthy and robust ecosystem with $310 million worth of Ethereum positions and assets, and $200 million on Solana (excluding low liquidity assets). This indicates that users are actively using and trading on both chains, and that there is significant interest and activity in both ecosystems. This is positive news for both chains, and for the cryptocurrency industry as a whole.
This is probably the most detailed analysis of #Alameda's on-chain status:
— 0xScope (@ScopeProtocol) November 9, 2022
We pull a total of 643 #Alameda's addresses data on different chains.
Right now, they have $310M in EVM positions and assets, $200M on Solana (excluding low liquidity assets)
A breakdown:
The company's decision to invest in a variety of Ethereum Virtual Machines (EVM) chains reflects its belief in the long-term potential of the technology. By diversifying its holdings, the company is hedging its bets and positioning itself to profit from the continued growth of the EVM ecosystem. With millions of dollars invested in leading projects like Arbitrum, Aurora, Avalanche, and BNB Chain, the company is well positioned to capitalize on the continued development of this exciting technology.
I believe that the acquisition of FTX by Binance is a positive development for the cryptocurrency industry. This move will bring more legitimacy to the space and help to attract more mainstream investors. The increased competition will also be beneficial for users, as it will help to drive down fees and improve the quality of service.
