MetaStreet Closed Alpha Launch
0x66ce
May 31st, 2022

We are excited to announce today the closed alpha launch of the MetaStreet Collateral Vault, the first liquidity scaling solution for NFT credit markets by MetaStreet. The first vaults to be released will be the Avatar-DAI vault. Participation will be limited to Level 4 community members (Officers), and first vault will be capped at 200,000 DAI with a maximum of 5,000 DAI deposit limit per wallet. The goal is to get maximum distribution to our earliest community members, broaden our testing environment, and create a starting point where we can experiment and grow.

Quests: Over the next 3 days, we have a few challenges for our mainnet alpha launch- there may be some goodies for those who complete any of the tasks below:

  • Difficult: Sell a qualifying promissory note to the Vault (go to NFTfi and get a qualifying promissory note, sell to MetaStreet)
  • Moderate: Deposit 5,000 DAI into the Senior tranche only (100% Senior).
  • Easy: Deposit 3,000 DAI in any combination (Senior/Junior).

What is a MetaStreet Collateral Vault?

MetaStreet is a liquidity scaling protocol for NFT credit markets. MetaStreet's primary product is a vault that enables secondary market liquidity for NFT-backed notes. Participants can deposit capital in order to earn yield from diversified portfolios of NFT-backed notes. Simultaneously, owners of NFT-backed notes can sell their notes into the vaults, earning a spread and allowing for capital recycling while providing the vaults with the yield that attracts the capital deposits in the first place.

How do I interact with the Vault?

The easiest way to interact with the vault is via Deposit Capital. Simply enter the amount of DAI you want to deposit (current maximum of 5,000 DAI per user), select a ratio of Senior/Junior, and then deposit!

Important Note: After depositing, your capital will be used to acquire promissory notes through the vault. It may take ~30-90 days to redeem your capital depending on when notes are originated and the overall vault utilization.

The most sophisticated way to engage with the platform is to go to nftfi.com and originate a promissory note against a BAYC or CryptoPunk that meets the MetaStreet requirements (confirm first by using the Note Calculator). Afterwards, you can head over to Sell Note and you can get your money back (plus profits!) depending on the note you originated and how much money is available in the vaults. A great place for those arbitrageur types!

How does MetaStreet permissionlessly price NFT-backed notes?

Check out our “Home” page to see what the MetaStreet terms are today, and test it live via our Note Calculator!

In order to offer real-time, dynamic pricing, MetaStreet utilizes an in-house price oracle for collateral values, with a weighted-average discount rate to capture both note and vault characteristics at any time. Maximum LTVs and durations are set at the protocol level and subject to approval by the DAO. The oracle itself references the lesser of current floor price and trailing 30-day volume weighted average floor price.

As of May 31, 12pm EST, the key terms for each asset type are:

  • CryptoPunks
    • Collateral Value: $93,000
    • Max Duration: 90 days
    • Max LTV: 40%
  • Bored Ape Yacht Club
    • Collateral Value: $152,000
    • Max Duration: 90 days
    • Max LTV: 40%

Interest rates are dynamic based on these parameters and vault utilization levels, resulting in a singular discount rate that prices each individual note.

Which NFT types will be included in these first two vaults?

The Avatar Vaults (first DAI, later ETH) will initially be approved for CryptoPunks and BAYC as collateral. Future additions to the vaults will be subject to a governance process. In addition to the Avatar Vaults, future vaults will cover other NFT types (ie, Artwork, financial NFTs, DAO vouchers, etc).

How do I gain access to the closed beta?

The closed beta is restricted from US persons and citizens from other restricted countries, and is also limited to community members that have completed the first 4 levels of Tradeweaver (powered by Otterspace), MetaStreet’s community onboarding tool. You can also ask an Officer (L4) for the constantly changing password as well - but they don’t have to share it if they don’t want to!

How do I become a member of the Private DAO?

Currently, Private DAO membership is limited to accredited investors that have provided seed capital for the protocol and team. In the future, the Private DAO will transition into a Public DAO format.

Where can I learn more about the protocol?

Check out our Gitbook to learn more, and join our Discord community for any questions!

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