M11 Credit, a financing company rooted in blockchain, has recommenced its cryptocurrency lending activities on the decentralized lending platform, Maple Finance.
M11 Credit shared the news about the service resumption in a tweet on Wednesday. Additionally, the firm mentioned they’ve enhanced their underwriting and oversight mechanisms.
The company revealed that the updated lending pool is anticipated to offer an annual yield of 10.75% using the stablecoin USD coin (USDC), with a term of 60 days.
In a more detailed exposition on a Maple Finance blog post, M11 Credit highlighted its advanced risk management structure and updated credit strategy for the lending service.
The blog post clarified that the new liquidity pool would cater exclusively to a handpicked clientele. M11 characterized these clients as “top-tier, low-latency trading entities boasting market-neutral tactics, which have consistently shown a commendable borrowing history from M11 Credit pools.”
Additionally, in the wake of the FTX bankruptcy, M11 announced the appointment of a new Head of Credit. This individual will be tasked with supervising the lending sector.
The blog emphasized, “The enlarged Pool Delegate team has instated a refined underwriting procedure and credit guideline, alongside the introduction of real-time surveillance mechanisms for both on-chain and off-chain assets.”
$36 million in defaults following FTX collapse
Last November, following FTX’s bankruptcy declaration, M11 Credit’s liquidity pools faced significant setbacks with defaults amounting to $36 million. Several of these loans experienced payment defaults and subsequently underwent restructuring.
Simultaneously, Orthogonal Trading, a prominent borrower from M11, came under scrutiny. They were alleged to have deceived both M11 and Maple Finance by misstating the extent of their losses in the FTX debacle. This purported misrepresentation reportedly resulted in losses as high as 80% for investors participating in the impacted M11 pools.