Research Summary
The report discusses MetaStreet, a liquid credit platform that has facilitated nearly $100 million in loans. The platform is expanding beyond NFTs to include any digital and real-world assets. It is backed by prominent entities in the crypto space and is forming partnerships with key industry figures. MetaStreet has launched an airdrop points campaign with significant day 1 boosts and benefits.
Key Takeaways
MetaStreet’s Expansion Beyond NFTs
- Platform Diversification: MetaStreet, initially gaining traction as a leading lender for NFTs, is expanding its services to include any digital and real-world assets that find Product-Market Fit (PMF) on-chain. This move positions MetaStreet as a comprehensive provider of on-chain credit for illiquid assets.
MetaStreet’s Airdrop Points Campaign
- Early User Incentives: MetaStreet has launched an airdrop points campaign, offering significant day 1 boosts and benefits. The campaign, which will end in three months or less, rewards early action. Users can earn up to +300% in extra points on the first day, with bonuses decreasing each day.
MetaStreet’s Innovative Lending Mechanism
- Automatic Tranche Maker: MetaStreet uses an innovative “Automatic Tranche Maker” to organize capital in a pool based on depositors’ risk/return profiles. This mechanism allows riskier credit providers looking for yield to take advantage of the “risky” part of the capital stack, while low-risk providers can have their lower rate protected by a lower loan-to-value.
MetaStreet’s Improvements on Existing Lending Protocols
- Protocol Enhancements: MetaStreet improves on existing lending protocols by removing the dependency on a centralized price oracle for loan-to-value limits, replacing a fixed, governance-driven interest rate model with a dynamic, deposit-driven one, and allowing users to instantiate a lending pool for any collection permissionlessly.
MetaStreet’s Future Prospects
- Market Positioning: As the DeFi space grows, MetaStreet is well-positioned to handle any tokenized illiquid asset on-chain. The platform’s permissionless nature allows anyone to create lending pools for ERC404s on MetaStreet, making it one of the first movers in the 404 lending space.
Actionable Insights
- Explore MetaStreet’s Airdrop Points Campaign: Interested parties may want to consider participating in MetaStreet’s airdrop points campaign, which offers significant day 1 boosts and benefits. Early action is rewarded, and users can earn up to +300% in extra points on the first day.
- Understand MetaStreet’s Lending Mechanism: It may be beneficial to understand MetaStreet’s innovative “Automatic Tranche Maker” and how it organizes capital based on depositors’ risk/return profiles. This understanding could help in making informed decisions about participating in the platform.
- Research the Potential of ERC404s: Given MetaStreet’s positioning as one of the first movers in the 404 lending space, it may be worthwhile to research the potential of ERC404s and how they could impact the DeFi space.
