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Protocol Actors
This page outlines all of the different actors in the Maple protocol and gives a short description of each of their roles.
Pool Delegates are users that manage Liquidity Pools on Maple. Each Pool has one Pool Delegate. They earn performance fees in return for evaluating potential borrowers and funding attractive Loans. Pool Delegates earn revenue from Establishment Fees (given as a percentage of drawdown amount) paid by Borrowers and Ongoing Fees (from a percentage of interest earned on Loans). In order to align incentives for the Pool Delegate, it is required that they stake a significant amount of BPTs in the StakeLocker before enabling external deposits from Liquidity Providers. This ensures that if a Loan defaults the Pool Delegate will incur a loss before Liquidity Providers.
Liquidity Providers add capital to the Pools to be used to fund Loans. Liquidity Providers are passive investors that want to earn yield on their capital by allowing the Pool Delegate to underwrite Borrowers and earn interest. Liquidity Providers earn revenue by claiming interest generated by the Pool.
Stakers are MPL holders that would like to support the protocol and earn a higher yield on their capital by accepting more risk. Stakers deposit BPTs in the StakeLocker as first loss reserve against Loan defaults. If a Loan defaults, BPTs are burned to cover the shortfall after liquidating the collateral of the borrower. In order to be compensated for this higher risk, Stakers are rewarded with a higher yield, which is a percentage of interest earned by the Liquidity Pool to which the BPTs are staked.
Borrowers are institutions that want to borrow capital from the Maple protocol. They do so by creating a Request for Loan that is reviewed and analyzed by Pool Delegates. After agreeing on terms, one or more Pool Delegates will fund the loan with funds available in their pool enabling the Borrower to draw down on these funds to commence the loan term. In order to drawdown on a Loan, the Borrower must transfer the required amount of capital to satisfy the specified collateralization ratio of the loan. The loan then commences and the Borrower begins making payments as per the agreed terms of the loan. If they fail to make payments on time, they will pay late fees during the grace period. If they fail to pay after the grace period has passed, their loan will be considered defaulted, their collateral will be liquidated and the default will be announced publicly.
The Governor is an account that will progress to be a token-governed DAO contract. Until then, it will be a multisig wallet. The Governor controls administrative functions in the protocol, such as managing MapleTreasury, defining global parameters, pausing functionality in the Loan Factory and Pool Factory, and deploying MplRewards contracts.
Each contract instance can have a set of administrators dedicated only to contract-instance protocol security/disaster management. They have ability to pause certain functionality of a contract, such as the creation of new Loans in the Loan Factory. These admins are set by the Governor (in the case of factories), the Pool Delegate (in the case of a Pool), and the Borrower (in the case of a Loan). They can, and are strongly encouraged to be, multisig wallets.
A Global Admin is an account that has the ability to call one function that can pause every function in the protocol. This is only to be used in the case of a drastic DeFi exploit, during which an action must be taken to stop the attack. This permission will eventually be revoked by the Governor once the protocol reaches a steady safe state. Until it is revoked, it will be a multisig wallet, and once it is revoked, it can never be re-enabled.