Unsecured institutional lending protocol Maple Finance has updated its protocol to version 2, aiming to open its lending platform to a wider range of institutional borrowers, including those from outside the crypto industry.

The focus of the Maple Finance 2.0 version update is to diversify borrowers and improve risk management parameters. The team hopes to reduce service-related risks caused by industry concentration through the Maple 2.0 upgrade. Maple introduces a new, more straightforward default process. If a borrower fails to comply with the terms of the agreement, the Pool trustee will be able to declare an early default, making the loan immediately repayable. If it is not repaid within the grace period, the trustee can liquidate the loan, and all lenders in the Pool will realize losses immediately while continuing to work to recover the loan. Another improvement is that Maple will allow lenders to deposit and withdraw funds on the platform at any time without waiting for the existing 30-day fund lock period to end. (The Block)

According to previous reports, investment institution Orthogonal Trading defaulted on eight loans on the crypto lending protocol Maple Finance, totaling $36 million, accounting for about 30% of Maple Finance's active loans. Its defaulted loans came from the M11 USDC pool (about $31 million in loans) and the M11 WETH pool ($5 million in loans) operated by M11 Credit, and other lending liquidity pools were not affected. Maple Finance has revoked Orthogonal Trading's borrowing rights and said it expects to recover $2.5 million to reduce losses. M11 Credit is considering taking legal action against Orthogonal Trading to recover the loan.