Meta4, through its over-the-counter lending vehicle Meta4 NFT Lending Fund, LP and various partnerships, is one of the largest liquidity providers in the NFT-Finance space.
NFT-Finance, as its name suggests, is the intersection of non-fungible tokens and decentralized finance. It allows holders of non-fungible tokens (which, theoretically, can be any singular item that is tokenized) to unlock value through p2p or p2pool credit markets. Meta4 Lending aims to earn revenue through various ETH strategies providing liquidity in these markets while also seeing returns from ETH increasing in price.
Highlights
- Meta4 Lending is a long ETH and digital assets fund that aims to see returns from increased prices of ETH and interest earned on collateralized loans on rare and valuable digital assets
- The loans we provide are short duration and over-collateralized by the digital assets by almost 2x
- Meta4 Lending aims to hedge risk through quantitative analysis, discretionary decision making based on expertise in the field, and tight operations
- Meta4 Lending has historically managed about $5M worth of loans on average on a monthly basis with the rolling loan amount exceeding over $29M currently
- Loans managed by Meta4 Lending have seen a total of about 334 ETH ($611K in present value) in interest payments resulting in an annualized return of about 20% solely from interest on utilized capital
- Since the start of Meta4’s loan endeavors in August of 2022, ETH has seen increase in price of 30%
Strategy
Due to challenges in valuing rare and 1/1 crypto-art, most platforms are geared towards “floor assets” to essentially make NFTs fungible. Additionally, there is generally a lack of liquidity in the market and thus difficult for many assets above a certain threshold to get funded. Thus, for high end collectors of NFTs, there are few options for them to unlock liquidity from their assets. This gap in the market presents a tremendous opportunity and is where our lending efforts are focused. Through our data-centric approach to valuation and risk-management, we are able to offer bespoke solutions to the sector.
Meta4 is seeking partners and investors to take further advantage of this opportunity. Interested in Borrowing/Lending against NFTs? Please fill out this form and we will get back to you as soon as we can.
Thanks!
