NFT Loan Platform Raises $4.2 Million From Coinbase Ventures, Others
NiftyApes, an NFT loan platform, announced a $4.2 million funding round led by Variant and FinTech Collective, reported first by The Block.
Coinbase Ventures, Robot Ventures, Polygon, The LAO, FlamingoDAO, Ryan Sean Adams, David Hoffman, Eric Conner, Anthony Sassano, Cyrus Younessi, DC Investor, James Young, James Duncan, Nadav Hollander, and Brendan Forster also participated in the round.
NiftyApes intends to use the funds to expand its team and the firm, founders Zach Herring and Kevin Seagraves told The Block.
NiftyApes provides liquidity for all NFT collections via ETH and DAI loan that auto-refinance with Harberger-style lending auctions. Traditionally, Harberger taxes are used for real estate properties where individuals self-assess property values and pay taxes on that self-assement. If, however, someone else thinks that self-assessment is too low, they can force a sale by buying the asset. More information about Harberger-style lending auctions is available here.
NiftyApes brings Harberger taxes to lending and borrowing digital assets with its positive-sum system, which uses instant liquidity, auto-magic refinancing, and no liquidity fragmentation.
"Using aspects of Harberger taxes, the NiftyApes protocol turns lending into a positive-sum system," the platform's website reads. "Everyone -- borrowers, lenders, and the commons -- can benefit."
NiftyApes co-founder and CEO, Kevin Seagraves, previously worked for Gitcion and BCG. The platform's other co-founder and COO, Zach Herring, formerly worked for Consensys.