The metaverse is Unbanked Newsletter For a weekly level up on the NFT and on-chain frontier
Dear unbanked nations,
MetaStreet is a rising force in the NFT lending sector, offering easy-to-use features for newcomers and seasoned DeFi veterans alike.
In today’s post, we’ll take a look at how the project works and how you might consider a yield platform if you’re currently looking for ETH yield opportunities in the NFT space!
-WMP
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meta streetIt is known as automatic tranche maker (ATM) System is a “liquidity expansion” project that has carved out a niche in the NFT lending space.
In other words, it is a permissionless lending protocol that can create an on-chain lending pool centered around NFTs. These pools are distinguished by structuring capital based on the different risk and interest rate profiles of NFT depositors and then converting it into fixed-term loans for borrowers.
Based on the latest data, the Total Value Locked (TVL) for the new MetaStreet V2 released in June 2023 is: Approximately 15.26 million dollars And it promoted so much more. $58 million worth of loans Up to now.
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MetaStreet’s ATM system is an attempt to address some of the shortcomings of existing lending protocols.
For example, it is designed to operate without a centralized price oracle, eliminating dependencies and potential points of failure. Dynamic interest rate models are another key feature that replaces fixed, governance-driven interest rates with a more liquid, deposit-driven approach.
Additionally, the permissionless nature of the protocol allows users to set up lending pools for any NFT collection, which is naturally good for accessibility and flexibility.
Zooming in a bit, note that MetaStreet’s pools aggregate capital based on price, term, and rate tier before pooling all deposits together. This method ensures that lenders of all risk tolerances can participate, with low-risk lenders enjoying the security of insurance from high-risk lenders and the latter benefiting from leveraged returns to take on more risk.
If the borrower defaults, the protocol uses a 24-hour auction for the underlying NFT to absorb and mitigate the amount originally borrowed.
Borrowing is for advanced users of MetaStreet, but the project also offers: Meta Street Savings Service This makes lending to NFT-based pools (and earning money from doing so) simple.
If you’d like to explore this opportunity, here are the steps you need to get started:
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🏊 Explore the swimming pool: Visit MetaStreet Accumulation Page Find available pools. Each pool is associated with a specific collection of NFTs and has unique risk and reward parameters.
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🌊 Select pool: Choose a pool based on your preference for deposit tokens, annual percentage rate (APR), and other factors such as relevant NFT collection.
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🪙 Deposit Capital: Decide the amount to borrow and deposit it into the pool of your choice. you use the wallet One) After accepting the deposit token (e.g. Wrapped ETH (WETH)) 2) Confirm your final deposit and start the transaction.
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🤲 Start making money: Once cryptocurrency is deposited, you will start earning profits according to the performance and conditions of the pool. The “My Positions” tab allows you to track your earnings and other key statistics over time. full page.
Of course, there are potential risks here (such as the specter of market failure or smart contract vulnerabilities), so lending is not for the faint of heart. MetaStreet V2 architecture is I’ve already been thanked twice.However, if you still try the protocol, to be safe, initially deposit only as much as you can afford to lose.
MetaStreet is promising, but it also faces serious competition from major modern NFT lending protocols such as: Ben Dao (TVL $52 million), blur loan (TVL $51 million), Processed as JPEG (TVL $29 million), NFTfi.com (TVL $17 million) and arcade (TVL $13 million).
That said, this project has a potential ace. Unlike these competitors, they all support live native tokens (bend, blur, JPEG) or announced plans for one (ARCD, NFTFI), MetaStreet has not yet introduced a native token.
This leaves room for possible token launches, which could help increase traction and keep up with the higher TVLs and trading volumes of larger competitors.
Will it happen? That hasn’t been revealed yet. But regardless of the theoretical airdrop, MetaStreet’s innovative ATM system and user-friendly accumulation service make it a strong contender in the NFT lending space, if only by default. The protocol is also visible Ready to transition to multichain It will soon become much more accessible.
Pay attention to this emerging prospect at the intersection of DeFi and NFT!
William M. Feaster is the creator of metaverse — Bankless newsletter focused on the emergence of NFTs in the cryptocurrency economy. He also serves as a senior writer for the Bankless newsletter.
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It is not financial or tax advice. This newsletter is strictly educational and does not constitute investment advice, a solicitation to buy or sell any asset, or a solicitation to make any financial decisions. This newsletter does not constitute tax advice. Consult your accountant. Do your own research.
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