Dapper Labs Backed Flowty Raises $4.5M to Allow Users to Borrow Against NBA Top Shot NFTs

NBA Top Shot whale who made $20 million from betting early on the NFT collection has raised $4.5 million for a P2P lending platform built on the Flow blockchain.
Image source: flowty.io

Quick take:

  • Flowty has raised $4.5 million in a funding round co-led by Greenfield One and Lattice Capital.
  • The peer-to-peer crypto lending platform was co-founded by NBA Top Shot adopter Michael Levy.
  • The startup will use the funds to accelerate platform development and expand the engineering and development team.

Flowty a peer-to-peer crypto lending platform built on the Flow blockchain has raised $4.5 million in a funding round co-led by co-led by crypto investment firms Greenfield One and Lattice Capital.

The company said it will use the funds to ramp up the development of its lending platform whilst also expanding the engineering and development team.

Levy’s new venture has since caught up the eye of the NBA Top Shot and the Flow blockchain developer Dapper Labs, which also invested in the startup’s first funding round. Users can get ex[pedited cash loans by borrowing against Top Shot “Moments”.

Commenting on the fundraising, Dapper Labs’ chief business officer Mik Naayem said: “We’ve always had this thesis around games being the gateway to people decentralizing their lives,” adding that the P2P decentralised lending app will play a crucial role in the ecosystem.

On the other hand, Flowty co-founder Michael Levy said in an interview that he sees Flowty as a technology platform that facilitates transactions between borrowed and lenders.

“Because it’s peer-to-peer, and because of how we set up our platform, we can provide our services to people without them needing to go through strict regulatory concepts,” he explained.

Levy thinks that his platform will particularly be very useful to people who are traditionally unbankable, or in regions that lack robust financial systems.

The app allows borrowers to list their Top Shot NFTs on Flowty, clearly stating their desired loan amount, rate and duration. On the other hand, lenders assess the most attractive offers to them and then release the funds. 

They earn yields from the asset until the borrower settles the loan. In the event of a defaulting borrower, the lender retains the asset.

Initially, Flowty loans were denominated in FUSD and tUSDT, but the platform has recently added new supported currencies including the Flow blockchain’s $FLOW token and the $USDC.

Levy said the goal of Flowty is to help in the financialization of NFTs.

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