MetaStreet is a liquidity scaling protocol for NFT credit markets started in 2021 in Ethereum and now is launching on Blast.
MetaStreet structures high yield sources into a tradable asset. Structuring is accomplished through MetaStreet v2: Automatic Tranche Maker ("ATM"), a permissionless lending protocol that automatically organizes capital into a pool based on the risk and return (rate) profiles of depositors. The ability to trade assets is enabled by the Liquid Credit Token ("LCT"), a liquid, composite ERC-20 representing each lender's position in the pool.
The main goals of The ATM are to improve three shortcomings of existing lending protocols:
- Oracleless: Eliminate reliance on a centralized pricing oracle to determine loan-to-price ratio limits.
- Dynamic Interest Rate Model: Replace the fixed, management-driven interest rate model with a dynamic, deposit-driven model.
- Permissionless: Allow users to create a loan pool for any NFT collection without any permissions.
The main advantages of LCT are:
- Long-term borrowing capability: lenders who historically have not wanted their capital to be illiquid now have access to secondary liquidity at any point during the term of the loan.
- Price support/stabilization: by deepening lending markets (i.e., more deposits from the DeFi community) and encouraging loans with higher LTVs (higher yields), which will reduce selling pressure on holders.
- Yield maximization: LCTs are fully composite tokens that can be used in all aspects of DeFi, including trading, LP delivery, leverage in Vaults, etc.
