Maple Finance, a DeFi lending platform, announced a major protocol update dubbed “Maple 2.0,” which includes upgrades to its withdrawal request process.

The update will introduce an option to schedule and prorate withdrawals and eliminate the lockup period on new deposits. Additionally, it will also include an updated protection mechanism called “first-loss capital” targeting lenders, which absorbs some losses from defaults. This mechanism enables pool delegates to provide funds that are denominated in the same asset as the credit pool for default protection. This is in contrast to the previous system which allowed any user to contribute by using any type of asset.

The protocol also announced that it would be discontinuing its lending services on the Solana blockchain in order to focus completely on Ethereum. The protocol, which accrued a total of USD 54 million in “troubled debt” in the last month, stated that these improvements would help to protect it against further loan defaults in the future.

Analyst QuickTake: Notably, this update comes just days after Maple cut ties with Orthogonal Trading , a crypto trading firm after the company defaulted on all four of its active loans worth USD 31 million on Maple's USDC stablecoin pool (close to 80% of the value of the entire pool).