- Existing investors Dragonfly Capital, Nascent and Ethereal Ventures participated
- The increase will be used to develop MetaStreet’s products
MetaStreet, a metaverse-oriented decentralized interest rate protocol, has raised another round of venture capital funding as the startup readies its latest product.
The $10 million capital raise — ahead of the launch of what MetaStreet dubs “PowerSweep” — brings the company’s one-year funding to $24 million.
The round has received participation from existing investors from Dragonfly Capital, Nascent, and Ethereal Ventures. New investors include Fintech Collective, DCG, TheLAO, Focus Labs, Mirana Ventures, Metaversal, OpenSea Ventures, Ledgerprime, Meta4 and Flying Falcon.
In an exclusive interview with Blockworks, Conor Moore, co-founder of MetaStreet, said that all capital raised will go towards product development, marketing and hiring.
“We used to focus only on the capital deposit side of the equation, and now we’re expanding our offering to help solve problems directly for borrowers,” Moore said.
MetaStreet operates as a provider of capital and is the architect of the infrastructure needed to automate the underwriting and execution of fixed rate loans secured by NFT.
Its latest product, PowerSweep, aims to increase the buying power of NFT traders by allowing them to buy and sell NFTs on margin via Reservoir, a Web3 native NFT order book protocol.
“Integration with MetaStreet essentially allows users to make a trade but do so with leverage instead of all their own capital,” Moore said. “It’s focused on the borrowers and the origin side of the equation.”
Moore said the next iteration of their product would be to improve scale and efficiency on the borrower side.
MetaStreet has facilitated about $40 million in loan volume to date, according to Moore. In fact, the protocol has facilitated two of the largest NFT-backed loans at 8.3 million DAI and 8 million DAI respectively.
After launching his vault product, Moore says that at any given time, there are approximately a few million dollars in users’ vaults.
“We are fortunate to be deeply entrenched in NFT finance at such a formative time in the metaverse lifecycle,” Moore said. “This is one of those unique moments in the growth of an industry where everyone here today is just focused on bringing new users into space, a blue ocean of opportunity.”
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