Quick take:
- MetaStreet is launching the closed beta of PowerSweep, an NFT leverage trading platform.
- All funds raised will go towards product development, marketing and hiring.
- The company is also building a platform for NFT lending stats.
MetaStreet, a decentralized interest rate protocol, has raised $10 million in its latest round of funding as the startup prepares to launch its latest product, PowerSweep.
This round featured participation from existing investors including Dragonfly Capital, Nascent and Ethereal Ventures, as well as new investors including Fintech Collective, DCG, TheLAO, Focus Labs, Mirana Ventures, Metaversal, Opensea Ventures, Ledgerprime, Meta4, and Flying Falcon.
Founded in 2021 by David Choi, Conor Moore, and Ivan Sergeev, MetaStreet is a permissionless NFT financialization platform. The company raised $3 in a seed round and $11 million in DAO liquidity in February. With the additional fresh injection of capital, MetaStreet has raised a total of $24 million this year.
The company plans to utilize this funding round to support product and feature development.
MetaStreet is building infrastructure that provides capital for NFT-backed lending and a suite of products that includes a new NFT leverage trading platform called PowerSweep. The platform is built on top of MetaStreet Vaults in partnership with the opensource NFT marketplace aggregator Reservoir Protocol.
Now in closed beta, PowerSweep aims to increase the purchasing power and flexibility of NFT traders by allowing users to buy and sell NFTs on margin (via Reservoir) as well as extend their debt every 30 days without any risk of liquidation.
“The integration with MetaStreet basically allows users to make a transaction but do it with leverage instead of all their own capital,” Conor Moore, co-founder of Metastreet, explained to Blockworks. “It’s focused on borrowers and the origination side of the equation.”
Its first product, Vault, allows users to deposit crypto to earn yield from diversified portfolios of NFT-backed notes.
“Once we released the MetaStreet Vault in June, we immediately began exploring what could be built on top of this infrastructure that could further improve user experience and attract new entrants into the industry. PowerSweep is the first in a long line of products we have planned in the pursuit of a singular mission: to rapidly universalize trust, credit and ownership in the Metaverse.” said David Choi, co-founder and CEO of MetaStreet.
MetaStreet has facilitated around $40 million of lending volume so far and was the facilitator of an 8.3 million DAI stablecoin loan backed by CryptoPunks issued to 0x650d in April and an 8 million DAI loan issued to an anonymous borrower who collateralised their collection of 101 CryptoPunks at an APR of 10% and a 30-day duration. These are two of the largest NFT-backed loans in the space.
The company said in a tweet that it will be wrapping up testing in the coming days before opening up PowerSweep to the public. MetaStreet is also building The Flock, a platform that provides NFT stats, insights, and deep dives into the space.
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