Bridgesplit, promising a yield on your precious NFTs, raises $4.25 million
$20 billion worth of NFTs lives on Solana and Ethereum. A startup has found a way to let you earn a yield on your precious NFT collection without selling it.
The co-founders of Bridgesplit, the first non-fungible token (NFT) financialization platform built on the Solana blockchain, claim that NFTs’ explosive growth still has low liquidity and minimal asset productivity, and they are building a solution to change that.
Bridgesplit aims to address the challenges of low liquidity and inefficient capital allocation by providing the first scalable infrastructure layer that creates interoperability between NFTs and DeFi (decentralized finance).
On Thursday, Bridgesplit announced a $4.5 million seed round led by CoinFund and Jump Capital. The raise also saw participation from Solana Labs, Coinbase Ventures, and Rucker Park Capital, among others.
“As NFT use cases expand beyond collectibles, liquidity and high asset productivity become imperative to their growth and evolution. Bridgesplit is building the core infrastructure to solve these needs and help unlock the true potential of NFTs," said Saurabh Sharma, Partner at Jump Capital.
Bridgesplit's vision is to allow NFT holders and participants to earn a productive yield on their NFTs. The core products that enable this are creating and trading NFT derivatives, like indexes and floor perpetuals, and NFT-collateralized lending.
Bridgesplit has built a platform where users will be able to earn from their NFTs without having to sell them.
"The main user experiences on the platform are: one, the ability to get yield, so earning income on NFTs and other assets. The other user experience is about being able to quickly get flexible and liquid exposure to NFTs. This will all be available in a web application, and you can access different vaults of NFTs. Then on the other side, you can enter different pools and earn a certain APV (adjusted present value), depending on the pool you are contributing to," Bridgesplit co-founder Mary Gooneratne told CyberNews.
The funds raised will be used to build out the engineering and community teams, along with progressing product development and relationships with different protocols across Solana, Ethereum L2s, and more.
"The easiest way is by providing liquidity to a pool of fungible tokens that represent that NFT. In our fractionalization alpha, that's live right now on Solana, you are able to fractionalize an NFT, which creates a lot of fungible tokens, and then you can pair those fungible tokens with some Solana or USDC and deposit them into a liquidity pool on an AMM (automated market markers), so very similar to how you do it on Uniswap or Radium, or any of the normal AMMs. You are still holding to some fraction of an NFT, but you are also earning trading fees on top of that, so you earn that yield," Truitt said.
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