Trade on chain
credit risk.
Long it if you trust the underwriting. Short it if you do not.
Curators underwrite billions in on chain credit.
They earn the fees. The depositors take the losses.
So nobody can price how good the underwriting is, until it breaks. We make the market that prices it.
Take a side on the underwriting.
A market on the credit itself. Go long if you trust the underwriting, short if you do not, and get paid if you call it right.
The underwriting holds.
Earn while the book stays clean. You cover the loss if it breaks.
The credit goes bad.
Paid the loss if one hits, many times your cost.
Already lending into these books? The short side doubles as a hedge on what you hold.
What you are trading.
The index is the Maple lending book, screened down to the loans worth covering. Every name above $10M, each paying a real spread over the risk free rate, value weighted by size so a big loan counts more than a small one. The tiny loans and the subsidized paper are dropped.
The long side sets the price.
The premium is set by how full the pool is. More capital staked makes cover cheaper, more cover bought makes it more expensive.
If you think the market has it wrong, take the other side.
How it works
Deposit to back the credit and go long, or buy cover to take the other side and go short.
How full the pool is sets the premium, and your rate locks when you buy.
A loss is read from the chain and pays out, in code.
A loss is read from the chain.
Cover pays on a real credit loss, read straight from the chain, not asserted. When one is read, it settles from the long side to the short side, in code.
- ✓ A borrower defaults
- ✓ Collateral falls short of the debt
- ✓ A liquidation gaps and recovers less than the loan
- ✕ A hack or exploit of the lending protocol itself
That is the venue breaking, not the credit going bad, so it does not pay out.
Fully funded.
Every payout is backed by real capital staked up front, and that capital earns the 3.63% risk free in treasuries the whole time it sits there, which is what keeps cover cheap. Nothing is lent twice, nothing is liquidated. When a loss is read from the chain, it settles in code.