The decentralized interest rate protocol has raised $24 million in 2022 as it looks to expand its offering.
According to reports, the Metaverse-based decentralized interest rate protocol, MetaStreet, has completed another round of venture fundraising featuring new and existing investors. The company looks to expand its product offering and break new ground in the Metaverse, DeFi, and NFT markets. MetaStreet raised $10 million in capital to bring its total haul from funding for the year to $24 million as it announces plans to launch a new product, dubbed PowerSweep.
In this fresh round, the participants included existing investors Nascent, Ethereal Ventures, and Dragonfly Capital. New names like DCG, Fintech Collective, Focus Labs, Metaversal, Ledgerprime, Flying Falcon, OpenSea Ventures, Mirana Ventures, and Meta4 joined the fray to close the round at $10 million. MetaStreet’s position is certainly enviable, and the new investment will be injected into key areas as the project looks to reposition itself in the NFT loan market.
In an interview with the press, MetaStreet’s co-founder, Conor Moore, explained that the new funding would go towards marketing, hiring, and product development. According to Conor, the protocol focused on the capital deposit aspect of decentralized NFT loans in the past. With the new funding, it would look towards expanding its offerings to reach borrowers and solve their problems directly.
MetaStreet is a decentralized protocol that deals with fixed-interest NFT-backed loans. The metaverse startup functions as a capital provider, architecting the facilitation of these NFT loans and powering the infrastructure behind the underwriting, execution, and automation processes. MetaStreet powers NFT-backed loans on peer-to-peer NFT marketplaces, with fixed interest rates and a stipulated period as part of the contract.
With the funding, MetaStreet announced the launch of its latest product, PowerSweep, designed to help increase NFT traders’ purchasing power by facilitating the trading of non-fungible tokens on the NFT order book protocol, Reservoir. With PowerSweep, NFT traders can buy and sell their tokens on Reservoir.
MetaStreet’s integration with Reservoir via PowerSweep will help drive liquidity to borrowers, allowing users to transact with leverage instead of putting all their capital at risk in a single trade. According to Conor Moore, PowerSweep is focused on borrowers and the origination part of the whole equation, intended to scale the borrower side and improve efficiency.
MetaStreet has been the hand behind some of the largest NFT-backed loans in the metaverse space. In February 2022, the NFT lending protocol facilitated an 8.3 million DAI loan with a 10% APR and a 90-day duration on the NFTfi peer-to-peer marketplace. MetaStreet also powered another 8 million DAI NFT-backed loan on NFTfi at 10% APR for 30 days. The startup has facilitated over $40 million in metaverse-oriented loans all time.
MetaStreet has facilitated around $40 million of lending volume to date, according to Moore. The protocol was the facilitator of two of the largest NFT-backed loans at 8.3 million DAI and 8 million DAI, respectively. The new product already boasts a few million dollars in its vault and will focus on driving adoption and onboarding new users into DeFi in the Metaverse.