Today we are excited to announce Arcade, a new kind of Web3 DeFi platform aiming to become the financial “super app” for NFTs. Arcade enables collectors, creators, and liquidity providers the ability to do more with NFTs, securely, on public permissionless blockchains.
Additionally, we’re incredibly excited to announce the completion of our Series A financing of $15M led by the phenomenal team at Pantera Capital with additional participation by Castle Island Ventures, Golden Tree Asset Management, Quiet Capital, Franklin Templeton, Lemniscap, and multiple other notable investors, who, like us, recognize the opportunity and potential of enabling NFT holders to unlock the value of these digital assets.
Our first product released on Arcade is an innovative peer-to-peer lending marketplace that allows NFT owners to unlock liquidity on one or more NFTs on the Ethereum blockchain. Lenders that hold stablecoin or ERC20 tokens can participate in a new source of DeFi yield by underwriting fixed-rate term loans collateralized by borrowers’ NFTs. Arcade brings real-world utility and liquidity to idle digital assets.
The platform uses the Pawn Protocol, a battle-tested and audited smart contract protocol specialized to escrow high-value assets on Ethereum.
Arcade is currently in private release with the protocol having more than $15 million in “blue chip” NFTs locked in escrow and close to $3.5 million of loan volume outstanding. An institutional OTC desk arranges high-value loans leveraging machine learning and social sentiment analysis to appraise NFTs and enable users to unlock maximum value from their assets. Arcade will launch to the public in early Q1 2022.
Borrow, Lend, Earn.
On Arcade loan terms are user-defined. Borrowers or lenders can make offers and counteroffers using a signed message on the decentralized application, or dApp. Borrowers can define terms such as funding type (ERC20), duration, and interest (APR) on loans collateralized by their NFTs. Loan terms are negotiations off-chain while settlement is performed on-chain.
The Pawn Protocol powering Arcade supports ERC721, ERC1155, and ERC20 assets through an innovative approach to loan bundling by introducing an asset wrapper to bundle NFTs on Ethereum, called a wNFT, saving users gas costs for loans on multiple assets.
Insert Token To Play.
Arcade is built by NFTech. Our focus is on building primitives, infrastructure, and applications furthering the growth of NFTs as an asset class. Our future roadmap includes on-chain installment loans, flash loan interest payments, peer-to-pool liquidity, creator contracts, and asset management applications.
Our growing team of technologists, builders, and visionaries comprise some of the brightest minds working in Web3 and DeFi. Our team is our biggest asset and our goals will help transform the NFT and metaverse economy into an integral component of a financial future that is more open to all.
NFTech is hiring engineers, strategists, marketers, and designers ready to build the financial platforms powering this revolutionary technology. Visit our careers page to view open roles.