Axie Infinity Launches In-Game Asset Lending
Axie Infinity players can now borrow up to 30% of their digital assets' value and earn rewards through staking.
According to an announcement made on February 2, Ronin Network has partnered with lending company MetaLend to facilitate in-game asset loans for its users.
1/ @MetaLend_DeFi has deployed on Ronin!
— Ronin (@Ronin_Network) February 2, 2023
MetaLend helps Axie Infinity players to take out loans against their in-game assets like axies and land directly from their Ronin wallets.
Here's what you need to know 🧵👇 pic.twitter.com/izkQjKjQuY
Currently, 1,587 NFTs on Ronin are being used as collateral on MetaLend, as stated on the company's website.
Starting today, users can stake their land and NFTs on-chain. Staking Axie Infinity Shards (AXS), the governance token of the Axie Infinity ecosystem, will soon be supported.
Users will need to go through a valuation process using MetaLend's system to borrow ETH equivalent to 30% of their asset value before starting staking for rewards. This process incurs a 1% fee.
MetaLend and Ronin Network first announced their partnership on January 31. MetaLend previously raised $5 million in a seed round led by Pantera Capital, with participation from Collab + Currency and gaming guild Ancient8.
At its peak in August 2021, Axie Infinity saw weekly trading volumes of $215 million, as measured by The Block. Recently, the once-popular Play-to-Earn game introduced Homeland – a highly anticipated game featuring an NFT land mechanism.
At its peak, Axie Infinity saw millions in weekly trading volume. Source: The Block
However, following the major Ronin hack and ongoing issues with tokenomics design, in-game currencies have gradually depreciated, despite some recovery due to recent updates.
The AXS price has not reacted strongly to this news.
1H Chart of AXS/USDT on Binance at 07:55 AM, February 3, 2023
