Syrup is a yield-generating protocol built on top of Maple’s institutional lending infrastructure. It offers access to fixed-rate, overcollateralized loans issued to institutional borrowers through Maple’s platform. It allows users to mint and trade synthetic tokens that track the price of real-world assets without requiring direct ownership of the underlying assets. ^[2]

Overview

Syrup is a decentralized finance (DeFi) protocol developed by Maple that provides access to institutional-grade yield for the DeFi ecosystem. It leverages Maple’s established lending infrastructure to offer permissionless entry into secured lending markets. Users can deposit USDC into the platform and receive SyrupUSDC LP tokens, which begin accruing yield immediately. The yield is generated through overcollateralized loans issued to crypto-native institutional borrowers, backed by liquid digital assets.

Built on Maple’s smart contract framework and supported by its credit underwriting system Syrup is structured to offer transparent and secure access to yield. As the protocol expands, it is expected to integrate with other DeFi platforms to support interoperability, allowing features such as collateralization and liquidity provision through SyrupUSDC across broader DeFi networks ^{[1] [2]}

Key Features

Drip Rewards

The Drip Rewards program is a mechanism within the Syrup protocol that distributes SYRUP tokens as incentives for participation and sustained engagement. The program operates on a monthly cycle, referred to as a "Season," during which users accumulate Drips—a unit representing eligibility for SYRUP rewards.Users earn Drips daily at a base rate of 1 Drip per 1 USDC deposited. This rate can be increased through specific activities, such as using integrated wallet partners or utilizing syrupUSDC across decentralized finance protocols. ^[6]

Staking

Syrup staking allows SYRUP token holders to earn rewards by participating in the economic activity of the Maple ecosystem. Stakers receive stSYRUP, a token that accrues SYRUP rewards over time. Rewards are funded through a combination of token inflation (scheduled at 5% annually) and buybacks using revenue generated from lending fees.

stSYRUP represents a non-custodial, decentralized staking position. Users can stake SYRUP to receive stSYRUP and may unstake at any time without a lock-up period. As rewards accumulate, the value of stSYRUP increases relative to SYRUP, though the number of stSYRUP tokens received per SYRUP decreases over time. ^{[7] [8]}

Tokenomics

Syrup Token ($SYRUP)

The SYRUP token's supply structure was defined through Maple governance proposals MIP-009 and MIP-010. Under these proposals, the total SYRUP token issuance reflects the conversion of existing MPL tokens at a fixed rate of 1 MPL to 100 SYRUP, ensuring no dilution for existing MPL holders. ^[5]

MPL to SYRUP Conversion

The transition from MPL to SYRUP was initiated following the Maple community’s approval of MIP-009 and MIP-010, which established the framework for token migration and future issuance. Under this arrangement, each MPL token can be converted into 100 SYRUP tokens. The total supply of SYRUP is projected to reach 1,228,740,800 by 2026, in line with the agreed inflation and issuance schedule detailed in MIP-009. ^{[3] [4]}

Risks and Challenges

Like any DeFi protocol, Syrup faces several risks and challenges:

Technical Risks

• [Smart contract](https://iq.wiki/wiki/smart-contract) vulnerabilities could lead to loss of funds
• Scaling limitations of the underlying blockchain
• Potential for governance attacks if token distribution becomes too concentrated ^[1]

Roadmap

The Syrup protocol has outlined several key milestones in its development roadmap:

• Expansion of supported synthetic assets to include more stocks, commodities, and indices
• Implementation of layer 2 scaling solutions to reduce gas costs and improve transaction throughput
• Enhanced governance mechanisms with delegated voting and proposal vetting
• Integration with additional DeFi protocols to increase utility and adoption ^[1]