Title: Introduction: Maple Cash Management
Author: @Maple_Direct
Date: 2023-10-23
Executive Summary
Maple is excited to introduce the Cash Management Pool (MPLcashUSDC) to the Aave community. Since launching in May 2023, Maple’s Cash Management Pool has attracted >60M USDC in total deposits and generated >500k USDC in accrued interest for lenders. The Pool is permissioned and available to accredited investors who complete a KYC and AML onboarding process with Maple, with 50% of current lenders either DAOs or web3 corporate treasuries.
Backed by short-term US Treasury bills and overnight repos, the Pool targets a net APY of the current Secured Overnight Financing Rate as reported by the Federal Reserve Bank of New York, less fees and expenses totaling 0.5% annualized. At current rates, the spot net APY of MPLcashUSDC is approximately 4.8%.
Future Plan
In the coming weeks, Maple Finance plans on providing a formal proposal to the Aave community regarding use of this product. Alongside the other RWA treasury providers in the forum, our product can offer additional yield and further treasury diversification.
Why Maple?
Maple’s Cash Management pool is highly differentiated from competitors, including the following benefits:
- Direct Asset Security: Actively managed and directly backed by US Treasury bills held in a standalone SPV.
- Daily Liquidity: Withdrawal function offering daily liquidity on US banking days, automated through smart contracts to ensure limited reliance on third parties.
- Short Duration: Weighted average maturity of the Pool’s assets is capped at 30 days – this restriction materially mitigates interest rate risk and ensures reliable access to daily liquidity for lenders.
- Yield Efficiency: Upon a new deposit, an LP token (MPLcashUSDC) is atomically transferred to the lender’s wallet and yield starts accruing immediately. Lenders continue earning interest up until the moment their LP tokens are redeemed from the pool for USDC. Fees and expenses total 0.5% annualized and there are no upfront subscription or redemption costs.
- On-Chain, Verifiable Position: Maple’s smart contract infrastructure has been built out over the last 3 years and one of the major benefits it provides is a constant, verifiable Net Asset Value (NAV) for lenders. Using the ERC-4626 standard each lender can verify the value of their holdings directly on-chain and the yield that they have earned to date. Importantly, this value is generated block by block through the smart contracts and is not subject to any manual manipulation or input.
- Regulated Counterparties: Custodial risks are minimized by partnering with established and regulated counterparties. The Pool’s prime broker is StoneX, a SEC and FINRA regulated broker dealer. BNP Paribas, the fifth-largest global custodian with over $10 trillion in assets under custody, is the underlying custodian for the StoneX account.
- Fully Ringfenced: As with all pools on Maple, the Cash Management Pool represents a distinct smart contract and Lenders are ringfenced from credit risk in other pools on the Maple platform. Lender deposits in the Pool are held in a non-custodial smart contract and Maple never takes possession.
Additional Information
Additional information covering the Cash Management Pool, including lending, withdrawing, and risks is detailed on GitBook as well as the other materials linked below.
If you are looking to learn more about the Cash Management Pool, please reach out to capital.markets@maple.finance.
Disclaimer
The data, statements and information presented in this post are for informational purposes only, and do not constitute financial or investment advice. This post does not constitute advice for any purpose whatsoever. The financial statements presented have not undergone a audit from a third-party professional accounting firm. As such, there may exist errors or inaccuracies that materially misstate the financial statements. We are not responsible for any financial losses or adverse outcomes that may result from making financial or investment decisions based on the data presented in this post. Further, by viewing this post you agree that the statements in this report do not constitute a representation, warranty or guaranty regarding any matter, and you are not relying thereon, and will not make any financial or investment decision based on the statements, but will conduct your own due diligence. You hereby release, waive and relinquish any and all claims, causes of action and disputes against Protocol Pool Operations Pty Ltd, Maple Labs Pty Ltd, Maple DAO or its contributors, and the creators of this post.
The forward-looking statements in this proposal are subject to numerous assumptions, risks and uncertainties which are subject to change over time. There are many risk factors, including those relating to blockchain technology generally; the development of decentralization; the uncertain regulatory environment; and Maple specifically, that could cause actual results or developments anticipated by us not to be realized or, even if substantially realized, to fail to achieve the benefits that could be expected therefrom. We reserve the right to modify our plans and intentions without prior public notice.