Partnered With:

MetaLend: Provide leverage tools for GameFi miners | Project Introduction

Read this article in 8 Minutes

MetaLend, an NFT lending project led by Pantera, innovatively proposes that NFT players after pledge can still use it in the game.

Written by: Ashley, Rhythm BlockBeats

Although the main direction of NFT is still social, with the rise of single product prices , the demand for financialization has increased, and NFT lending has also formed its own market. MetaLend, led by Pantera, is one of them.

MetaLend operation logic

Currently MetaLend mainly lends to Axie Infinity. The logic is the same as other NFT lending platforms. Borrowers use Axie as collateral to obtain ETH loans, and borrowers get their own NFT estimated prices through the NFT price evaluation system developed by MetaLend. MetaLend has a Vault account that stores users' collateral NFTs. Like DeFi, MetaLend will provide users with collateral certificates.

MetaLend still uses overcollateralization, the collateralization rate is 130%, that is, the borrower can lend 30% of the collateral assets, and Axie that exceeds the ratio will be liquidated. There is an NFT pricing tool in the platform, and users can get the NFT valuation and loan size by entering the address.

Taking Axie worth 10ETH as an example, players can get a loan of up to 3ETH. If the user fails to repay the loan in time, the asset will enter the liquidation market, and other users can purchase NFT at a 10% discount. This is also the protection mechanism of the platform itself.

When the price of mortgaged NFT assets fluctuates, especially when the value falls, the platform also has its own risk control measures.

When the borrowers get the loan, if the price of their mortgaged NFT drops, the corresponding maximum loan amount will also drop, and they need to make up for it This part of the price difference: the original loan amount - the current loan amount. When the borrower does not repay this part of the price difference to maintain the existing maximum loan amount, the platform will sell the NFT mortgaged by the borrower according to the agreement to repay their loan amount.

Unlike other NFT lending, borrowers can still use their Axie to play Axie Infinity (or rent out NFTs in the scholarship program) after collateralizing through MetaLend And get SLP, which is the biggest competitive advantage of this project.

MetaLend said that it will cooperate with the Axie Infinity game to obtain information interaction certification. After the borrower pledges the NFT, MetaLend will give the exclusive pledge certificate information, and the borrower can continue to use the pledged NFT in the game according to the certificate information.

MetaLend proposes the separation of the use right and ownership of NFT. The borrower owns the use right. After the mortgage, the ownership of the NFT is attributed to MetaLend, and then the mortgage ownership ends be returned to the borrower. In this way, borrowers can obtain maximum liquidity.

Like many later DeFi, MetaLend solves the capital efficiency of NFT. In order to expand the scale, bitcoin miners will mortgage bitcoins to borrow cash after digging out bitcoins, and buy mining machines again to expand the scale. Likewise, MetaLend is providing leverage tools for Gamefi players to scale up.

Revenue Model

Like DeFi, MetaLend belongs to peer-to-peer lending. Depositors deposit ETH into the pool. The specific annual deposit interest rate has not yet been announced. The project party said that it will be determined according to the liquidity of the ETH pool. % to 10%.

The platform will charge 15% of the interest paid by the borrower as income, which is also the only source of income for MetaLend.

Founding Team

Two founders of the team None of the members have entrepreneurial experience in the blockchain industry.

Co-founder Sudjeev Singh, once worked in the US "shared bicycle" Bird, responsible for product manager and user growth.

Another co-founder, Nikhil Bhardwaj, previously led a team of more than 600 engineers at Ring (acquired by Amazon).

Project progress

On April 21, MetaLend, an NFT lending agreement, announced the completion of US$5 million in financing. This round of financing was led by Pantera Capital, with participation from Collab+Currency, Ancient8, etc. . Funds from this round of financing will be used for product development, team expansion and marketing activities.

MetaLend stated that they will cooperate with the smart contract security agency OpenZeppelin to conduct a security audit, and expect to launch a lending solution based on the Polygon game within 2 to 3 months. The project party has not reached a cooperation with Axie Game for the time being. The founder told Rhythm BlockBeats that their second largest investor, collab+currency, is a member of the board of directors of Axie Infinity, and they look forward to reaching a cooperation with the official in the future.