The ripple effects of Celsius, Babel Finance, and 3AC’s liquidity crisis continue to shake up DeFi. Maple Finance announces they are halting withdrawals, while TrueFi, in a show of strength and stability during market turmoil, recovered an outstanding loan from 3AC.
Maple Finance is the latest of many crypto platforms to warn lenders that they are facing difficulties with liquidity.
“There may be instances where there is insufficient cash in pools,” the company writes in an official published on Tuesday, also stating on Twitter that “lenders may be unable to withdraw and must wait for borrowers' repayments and new deposits.”
It was not immediately clear what brought on the crisis, but a later hints at the most likely source of the liquidity problems. Orthogonal granted a $10 million loan to Babel Finance from its USDC pool on Maple, the statement adds “Celsius and 3AC do not borrow from Maple.”
As the broader DeFi ecosystem continues to face the fallout from Celsius, 3AC, and Babel Finance unraveling, other uncollateralized lending platforms are faring a lot better.
TrueFi, the original and leading on-chain credit platform, confirmed its strong standing in an official statement: TrueFi’s credit committee has been rigorous in keeping the protocol’s lending book healthy and maintains active conversations with borrowers regardless of market conditions.
The latest TPS/3AC loan was successfully repaid ahead of maturity on June 20, 2022, with no impact for lenders. Celsius and Babel are not active TrueFi borrowers, having repaid their last TrueFi loans in January of 2022 and December of 2021, respectively.
Today, TrueFi lenders have no direct exposure to any of these three institutions.
