Taker Protocol raises $3M to integrate financial primitives in NFT market
- Taker will use the funds to improve the liquidity available in the NFT market
- The value of an NFT often drops to zero because one can’t find buyers at any reasonable price
- Taker to solve most serious liquidity issue by letting borrowers and lenders liquidate assets
NFT liquidity protocol Taker raised $3 million through the support of reliable investors to integrate financial primitives into the dynamic market. Due to the asset class’ non-fungible structure, existing DeFi primitives are hard to integrate, leading to significant liquidity issues. Taker will use the funds, raised in a round led by Electric Capital, to improve the liquidity available in the NFT market. Other participants included DCG, Ascentive Assets, The LAO, Sfermion, Dragonfly Capital, Spartan Group, and Morningstar Ventures.
NFT value often drops to zero
Being extremely volatile, the value of an NFT often drops to zero because one can’t find buyers at any reasonable price. Moreover, NFTs can end up forgotten somewhere because they’re hard to use productively after buying. Taker Protocol aims to solve the most serious liquidity issue by letting borrowers and lenders rent and liquidate assets that aren’t cryptocurrencies. Among these will be not only NFTs, but also synthetic assets, financial papers, and more.
Taker Co-Founder Angel Xu comments:
“We are absolutely thrilled 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 problems in the NFT lending market for the benefit of end-users. This investment will enable us to further optimize liquidation of NFT assets across multiple blockchains, removing the barriers to entry that prevent new players from entering the market.”
Taker to launch full protocol version
With the funds raised, Taker will launch the protocol’s full version on Ethereum (ETH/USD), Polygon (MATIC/USD), Solana (SOL/USD), and other major blockchains. Project development will be supported by major stakeholders and participants in the NFT ecosystem. Taker DAO contains a number of sub-DAOs, each of which will manage their own floor price for any NFT on their whitelist in case of loan defaults. Taker believes that careful selection of NFT assets is the best way to minimize risks for lenders.
Maria Shen, Partner at Electric Capital, says:
“Taker Protocol is using an innovative approach to solve the biggest problem in the NFT space – lack of liquidity. With Taker, we are one step closer to the world where anyone anywhere can use their NFT assets to take out a loan.”