Aave partners with Maple Finance to connect stablecoin liquidity to the on-chain lending market

Decentralized lending protocol Aave has announced a new partnership with on-chain institutional credit platform Maple Finance to connect institutional capital and decentralized liquidity. Through this integration, Maple's yield-bearing stablecoins syrupUSDC and syrupUSDT will be officially listed on Aave's lending market.

On the 21st (local time), Cointelegraph reported that syrupUSDC will be added to Aave's core market, and syrupUSDT will be added to the Plasma instance. Both stablecoins are issued backed by Maple's on-chain institutional credit pools, which manage institutional capital on the scale of billions of dollars.

Maple said the partnership aims "to stabilize lending demand within Aave's markets and improve capital efficiency." Aave is a smart contract-based protocol that allows users to deposit cryptocurrency to earn yield or borrow against collateral.

With this partnership, Aave expects to diversify its asset collateral composition and maintain market liquidity more stably through inflows of institutional funds. However, it is still uncertain how much institutional capital will actually flow in through this integration.

Aave's current total value locked (TVL) is about $39 billion, and Maple Finance's TVL is about $2.78 billion.

This collaboration came less than a month after Aave announced the planned release of the V4 upgrade by the end of 2025. The new version will adopt a hub-and-spoke modular architecture, including liquidity sharing, strengthened risk management, and improvements to liquidation mechanisms.

Meanwhile, Maple Finance has been growing this year as it benefited from increased institutional participation in the DeFi market and the spread of real-world asset tokenization. According to Binance Research, total value locked in decentralized lending protocols increased by about 72% from January 2025 to early September.

On-chain data shows Maple Finance's TVL surged from $296.9 million on January 1, 2025 to $2.78 billion currently. In June, Maple expanded its stablecoin syrupUSD to the Solana blockchain and supplied $30 million of liquidity.

Maple Finance experienced lending defaults following the 2022 FTX collapse, but has since shifted to an institution-centered liquidity provision structure and has shown a rapid recovery.