MetaLend, a Santa Monica, CA-based provider of a bank for digital economy, raised US$5M in Seed funding.
The round was led by Pantera Capital, with participation from Sky Mavis, Ancient8, and David Cho.
The company intends to use the funds to accelerate growth, expand operations and product development, bring on talent across all functions, and ramp up marketing efforts.
Led by Sudjeev Singh and Nikhil Bhardwaj, MetaLend is the bank of the new digital economy—currently enabling users in the GameFi sector to take out loans by using their NFTs as collateral.
The MetaLend protocol enables traders to use NFTs as collateral to take out loans, starting with a focus on the GameFi sector. MetaLend empowers NFT owners to continue to utilize their assets to generate yield while the assets are being used as collateral for the loans. After receiving an appraisal of their digital assets by MetaLend, traders are able to borrow up to 30% of the value of their NFT, with loans being disbursed in ETH. Based on these loans, liquidity is provided by lenders looking to earn interest, APY is set by utilization of the liquidity pool with an anticipated range of 5-10%.
With an initial focus on Axie Infinity, MetaLend works with game guilds and scholar programs that are looking for additional liquidity to grow their already profitable operations, and plans to expand to other games and use cases wherever NFTs are adopted. By providing over-collateralized loans against NFTs, MetaLend works directly with gaming guilds to support their capital needs and grow their businesses, as well as individual play-to-earn NFT owners looking to tap into day-to-day liquidity for daily life needs.
It is currently in closed beta and will be launching to the public in Q2 of this year.