Under the Blur frenzy, NFTfi solves the problem of NFT liquidity
This month, Blur, an upstart on the NFT track, announced the second round of incentive plans, and the trading market on the platform is in full swing. At the end of last year, it once replaced OpenSea as the number one NFT trading platform, and currently occupies more than 50% of the market share.How can Blur approach the track leader OpenSea in the bear market cycle?
Unlike general NFT trading platforms, Blur is an aggregation platform for professional NFT traders. It brings together trading lists such as OpenSea, LooksRare, and X2Y2, and clearly displays information such as the floor price, attributes, ranking, cost price, and recent price changes of each NFT. Royalty fees.
It is not difficult to see that the business model of Blur's professional aggregated NFT platform Bid-to-Earn ("Shot and Earn") focuses on the buyer's market, borrowing from the traditional DEX order book model, and solving the problem of insufficient yield and no one to provide liquidity. embarrassing situation. And Blur, which has solved the NFT liquidity problem to a certain extent, is also regarded as a pioneer in the development of NFTFi, and may drive the entire track to form a greater wealth creation effect.
Looking back at the current NFT track, there are still a large number of digital collection speculators that appeared in the last round of bull market, and mainstream trading markets like OpenSea charge exorbitant fees for each transaction, NFT holders often face difficulties in selling embarrassing situation. In the final analysis, the liquidity problem of NFT has hindered the long-term development of the track.first level title
What is NFTFi
Before understanding NFTFi, let's go back to the NFT concept. NFT is Non-Fungible Tokens, and irreplaceability is its fundamental attribute. In order to facilitate the understanding of the financialization of NFT, NFT is first divided into two categories, one is purely artistic NFT with collection value; the other is practical NFT with special use value.
According to the above table, different types of NFTs have different attributes from an intrinsic point of view. Avatars and art paintings are more valuable for viewing and collecting. The purpose of users after purchasing is not to sell, but more to collect. So we cannot mandate that all NFTs have high liquidity.
On the other hand, membership token NFTs issued by brands such as Starbucks Odyssey have use value, which is more in line with the financialization trend of making NFTs more liquid. Therefore, the NFTFi mentioned below is mainly aimed at these practical NFTs.
Simply put, NFTFi is the financialization of NFT.first level title
Why NFTFi is needed
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trust issue
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threshold problem
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use case question
In addition to the artwork NFT mentioned above, most NFT holders hope that their digital collections will have more value and improve asset utilization. Otherwise, it will be difficult to attract long-term users simply by buying low and selling high.
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NFTFi project introduction
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Nftperp
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JPEG'd
JPEG'd aims to enable holders of NFTs to utilize their NFTs as collateral. Users can deposit their whitelisted NFT as collateral into JPEG's smart contract and start using it to leverage the lending mechanism. This would effectively turn NFTs from static artworks into yield products, where if users run out of their loans, they pay back the principal and accumulated interest and can get their NFTs back in JPEG’s vault.
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LinoSwap
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TinTinLand at"Annual NFT Market Review, Is 2023 NFT the Best Choice for Developers?" "This article reviews and looks forward to the development of the NFT market. Although the current market is in a downward trend, the NFT track has shown extraordinary staying power. It is worth noting that the market value of blue-chip NFTs (BAYC, CryptoPunks, Azuki, Moonbirds) is as high as 3.5 billion US dollars, which will also become a driving force for NFTFi builders and developers, attracting more developers and users to join.
Based on the previous analysis of the NFTFi track, it is not difficult to see that NFTFi will still be one of the focuses in 2023.Exploring NFTFi and creating more possibilities will also bring more opportunities and advantages to developers who are looking for space to enter NFT, making NFT continue to be one of the most convenient and attractive ways for users to enter Web3.
(The content of this article is for reference only and should not be regarded as legal, business, or investment advice.)
