Orthogonal Default event

Event · PageRank 0.0000

Overview

In early December 2022 credit trading firm Orthogonal Trading defaulted on roughly $36 million of loans across eight positions on the DeFi lending protocol Maple Finance — about $31 million in the M11 USDC pool and $5 million in an M11 WETH pool. Maple said Orthogonal had misrepresented its financial position and had been operating while effectively insolvent, largely because of funds trapped on the bankrupt FTX exchange. The default affected roughly 30% of Maple's active loans at the time; Maple severed ties with Orthogonal, which entered provisional liquidation later that month.

Relations

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Frequently asked questions

How much did Orthogonal Trading default on?

About $36 million across eight loans on Maple Finance — roughly $31 million in the M11 USDC pool and $5 million in an M11 WETH pool.

What caused the default?

Orthogonal had significant funds trapped on FTX after its bankruptcy; Maple said the firm misrepresented its financial position and was trading while effectively insolvent.

How big was the impact on Maple?

The defaulted loans represented around 30% of all active loans on the protocol, and Maple ended its relationship with Orthogonal as a pool delegate and borrower.