Policyholder protocol, a cryptocurrency liquidity protocol for NFTs, has secured $ 3 million in capital from several investors to develop financial primitives for the nascent non-fungible token industry.
The Taker Protocol investment cycle was led by Electric capital, with contributions from DCG, Ascentive Assets, Dragonfly Capital, Spartan Group, The LAO, Sfermion and Morningstar Ventures.
The Taker protocol aims to improve the liquidity currently provided in the NFT space. Due to the “unique” non-fungible structure of NFTs, the current decentralized finance (DeFi) primitives are difficult to integrate effectively into the market. These problems can lead to serious problems in terms of “overall liquidity”.
As mentioned in a statement shared with CI, the value of an NFT is quite volatile and can effectively drop to zero as no buyer can be found at reasonable prices. NFTs are also difficult to use productively (once acquired) and often end up “forgotten in the user’s wallet,” the announcement notes.
Taker Protocol addresses these potentially serious liquidity issues. With this protocol, lenders and borrowers can liquidate and lease assets that are not cryptocurrencies. It also helps establish additional cash flow and key opportunities. For Taker, these assets would include NFTs, financial papers and synthetic assets.
The TKR token “defines membership in the Taker DAO, which has several key functions in the system”.
The statement further noted:
“In addition to setting the loan-to-value rates and other parameters in the protocol, the DAO will also help to fairly assess a particular NFT or NFT collection. This means that each asset supported by Taker will have a fair guaranteed floor price. In return, TKR holders will be able to get rewards and receive a portion of the platform’s revenue.
The tour product is expected to help Taker develop and deploy the full version of the protocol across multiple chains, such as Ethereum, Polygon, Solana, BSC, and Near. The support of these stakeholders and industry participants to the NFT ecosystem should “help further develop the project,” the announcement notes.
As stated in the update:
“Taker DAO contains many DAOs of different custodians (sub-DAO), each sub-DAO will manage its own whitelist and a floor price for any NFT on its whitelist if the borrower does not honor the loan. We believe it is best to mitigate the risks to our lenders by carefully selecting the NFT assets that our community wants and trusts the most. “
Aligning the interests of Distributed Autonomous Organizations (DAOs) with those of lenders should help mitigate risk exposure for lenders while increasing profits for DAOs.
Each sub-DAO will keep its own funds and may choose to “focus exclusively on a specific type of NFT asset”. For example, it could be “works of art only or metaverse only”.
Co-founder of Taker Angel Xu declared:
“We are absolutely delighted to welcome so many well-established investment funds to the team. Their participation heralds an exciting new phase for the protocol as we seek to address persistent issues in the NFT lending market for the benefit of end users. This investment will allow us to further optimize the liquidation of NFT assets across multiple blockchains, removing barriers to entry that prevent new players from entering the market. “
Maria shen, a partner at Electric Capital, noted:
“Taker Protocol uses an innovative approach to solve the biggest problem in the NFT space – the lack of liquidity. With Taker, we are moving closer to a world where anyone, anywhere can use their NFT assets to contract a loan. “
As stated in the press release, Taker claims to be the first protocol to offer liquidity to the NFT market via a DAO. A multi-strategy, cross-chain lending protocol is described that allows lenders and borrowers to “liquidate and lease all kinds of crypto assets including financial papers, synthetic assets”. Taker offers “guaranteed liquidity via [their] lenderDao infrastructure and extensions that could be integrated into NFT marketplaces. “