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Metastreet announced this week a new primitive in NFT lending and a new product, the Automatic Tranche Maker. The MetaStreet ATM is a new primitive in NFT lending market design that utilizes user-defined tranches within a broader pool of capital to enable economies of scale. This design is the first of its kind in NFT lending, as the protocol is entirely permissionless, oracleless, and promotes capital efficiency, unlike other offerings in the space today.
The capital pools themselves are specific to a single NFT collection (or subset of tokens within a collection), and exist on top of infrastructure called “thick ticks” which contain information about each pool depositor’s risk tolerances. These thick ticks provide the framework for capital to be stacked into tranches and prioritized such that borrowers can always source liquidity with the most favorable terms possible.
https://medium.com/@MetaStreet/metastreet-v2-automatic-tranche-maker-atm-66c3088cedf7
