Quick take:
- The round was led by Variant and Fintech Collective.
- NiftyApes aims to bring value to borrowers by having lenders compete to offer the best terms throughout the life of the loan.
- Borrowers can lock their NFTs into NiftyApes and accept loan offers of their choice.
NiftyApes, a lending protocol that allows loans for any NFT or collection, today Mutant and fintech collectives.
Other investors include Robot Ventures, Polygon, Coinbase Ventures, The LAO, FlamingoDAO, Ryan Sean Adams, David Hoffman, Eric Conner, Anthony Sassano, Cyrus Younessi, DC Investor, James Young, James Duncan, Nadav Hollander, and Brendan Forster. , and founders. Super Rare and Rare.
The funds will be used to grow a team of 7 people and continue to expand as the company is actively hiring.
NiftyApes offers active lending auctions for every theoretical asset or collection in existence. As the traditional bond market prioritizes returns to capital holders while forgoing returns to lenders and exposure to better terms for borrowers, NiftyApe is instead entitlement to the interest earned on each loan. Applying its methods to lenders, not borrowers, by facilitating an ongoing auction of
Once a loan application is executed, the lender does not own the loan, but rather the right to interest payments and collateral in the event of default on the loan. They have the right of interest and default as long as they offer the best terms for their borrowers.
Always-on auctions deliver value to borrowers by ensuring that lenders compete to offer the borrower the best terms throughout the life of the loan. Borrowers can refinance their chosen loan offer as many times as they like.
For example, if a lender sets the terms of a loan below market, other lenders will refinance the loan with better terms. Setting terms too high above the market can cause lenders to overvalue assets and incur losses. As a loan’s ratio-to-value (LTV) value increases, lenders compete to offer better terms for entitlement to interest payments and exposure to the underlying collateral.
Lenders deposit capital to earn yield and make offers on existing assets or NFT collections. A successful offer will receive interest and default rights on the asset, and the borrower will lock her NFTs into her NiftyApes for immediate liquidity.
Another NFT-backed lending platform, MetaStreet, recently raised $10 million for product development. DeFi lending platform and peer-to-peer marketplace, Arcade, went live In April, users were able to get loans with NFTs as collateral.
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