EU and Swiss-based crypto firm, YouHodler is planning to bring traditional finance to the rising metaverse, with users able to use their decentralized assets in the metaverse as collateral for loans.
Over the past year, the cryptocurrency universe has witnessed massive growth in adoption and development, with the concepts of metaverses and decentralized finance (DeFi) exploding in value during this time. While the growth in value has slowed since the turn of the year, development has not stopped a bit, with new products being launched every other day. Metaverses, in particular, has become an interesting topic across mainstream media and the general population, especially with Facebook boss Mark Zuckerberg announcing Facebook’s evolution from a social media platform to a metaverse platform.
While it is not a new concept, metaverses are still a hot topic with crypto projects such as Decentraland, Axie Infinity, and Sandbox exploding in user growth and their native tokens experiencing widespread adoption. Simply put, the metaverse is an elastic concept most easily described as a basic evolution of the internet. It’s an online space where people can meet, socialize, shop, and even work using avatars.
To this end, YouHolder, a fintech platform focused on crypto-backed lending, stablecoin loans, crypto exchange, crypto savings accounts, and crypto trading, announced the listing of these metaverse projects on its platform. This allows users to place the metaverse native digital assets as collateral for loans, combining the future (metaverses) with traditional finance. The platform currently has listed five metaverse projects including Decentraland (MANA), The SandBox (SAND), Axie Infinity (AXS), Illuvium (ILV), and Gala (GALA), with more expected to be added in the future.
“Web3 and the metaverse represent the next iteration of the internet. At YouHodler, we want to help our clients utilize their crypto in a positive way instead of just buying and holding,” YouHodler CEO Ilya Volkov stated on the listings. “Hence, we feel offering new tokens such as these give our clients access to the metaverse’s potential combined with our innovative digital asset tools.”
The platform opens up a channel for NFT holders too, allowing them to secure loans using these unique assets, similar to real-life collateral like land and buildings.
To kickoff, YouHodler allows users to buy, sell, trade, lend and save all the listed coins above. For a limited time, YouHodler will feature promotion interest rates of 25% – 30% APR for these new tokens. The promotion will last one month from the launch of these tokens. After that, the interest rates will decrease to 3% APR plus compound.
Notwithstanding, for risk-averse clients, YouHodler offers interest rates as high as 12.3% APR for some stablecoins. With the metaverse world growing and cryptocurrencies becoming more mainstream, YouHodler’s addition of the metaverse to its platform paints a pivotal moment in the internet’s evolution to Web 3.0, a statement from the team reads.
