Zinger Key Points
- Maple Finance eyes expansion to Solana and Base, leveraging strong user bases while tackling liquidity fragmentation challenges.
- Powell sees crypto-backed mortgages as a key real-world use case showcasing DeFi's future value for everyday users.
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Maple Finance MPL/USD CEO Sid Powell on Monday highlighted Bitcoin BTC/USD yield products and AI as key areas of innovation for the future of DeFi lending.
In an interview with Benzinga, Powell emphasized that the current market lacks robust Bitcoin yield offerings, viewing it as a significant opportunity.
He also identified AI as a powerful tool to improve DeFi user experience and operational efficiency, along with a focus on cross-chain solutions to address liquidity fragmentation.
Powell described Maple Finance’s “Lend + Long” product, which offers investors a way to earn treasury yields while capturing BTC price appreciation without downside risk.
By depositing into Maple's High Yield Secured Pool, users generate yield, with a portion allocated to BTC call options.
He explained that "what we’re trying to do is give you a product where you can get some of the upside of the market without wearing the risk that Bitcoin drops 10%."
This structured approach lets investors participate in BTC gains while maintaining a stable yield, unlocking a new category of on-chain structured finance products for institutions.
Powell noted that this product structure is attracting interest from high-net-worth individuals, corporate treasuries, and on-chain asset managers because it saves the time and complexities of structuring their own trades.
Powell further acknowledged DeFi’s strength in transparency.
Also Read: Bitcoin, Ethereum, Solana Crash — Here’s Why China’s Low-Cost AI Model DeepSeek May Be To Blame
He pointed out the black-box issues with TradFi, noting “You didn’t know what was happening under the hood.”
He also mentioned the ease of using DeFi platforms was a strength. He highlighted pricing, unwrapped collateral, and smart contract risks as key areas for improvement.
When asked about how DeFi can improve transparency he responded by stating “I think what it does need to do is have the less fragmentation of collateral. So like assets on other chains, very hard to use around DeFi.”
When asked about his outlook on innovation, Powell expressed his excitement about the potential of Bitcoin yield products, stating, “In terms of general DeFi products and lending, I’m most interested at the moment in Bitcoin yield products. I think it’s a huge under address market. There’s no great products there at the moment."
He also highlighted AI’s potential for DeFi: “I think AI is going to be quite powerful for DeFi.” And finally he elaborated on cross-chain solutions, noting their main issue is “fragmenting liquidity.”
He noted they are keeping an eye on “Solana SOL/USD and Base as potential areas” to expand to.
Powell said that a combination of regulations, an oversupply of lending capital, and TradFi rate cuts will all play a role in making under-collateralized lending more viable in the near future.
He also spoke about his long-term vision for DeFi, citing crypto-backed mortgages as a viable real world use case, “I mean in everyday life you could see it, one of the big use case I’m keeping an eye on is crypto backed mortgages.”
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