Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT

Assets that generate income are often more valued. What kind of chemistry is created when NFT meets DeFi?

NFTs are tokens in the form of virtual goods, including digital art, virtual properties, game assets, etc. NFTs can also be used in real-life goods distribution mechanisms in areas such as inventory management, trade finance, ticketing, etc.

How can you make your NFTs more valuable?

In the senior crypto world community, assets that generate income are often more valued, so what kind of chemistry does NFT meet DeFi create?

Making NFT more liquid

NFT assets can share ownership

NFT can generate income

NFT can be used as collateral

Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT

Image source : Fractional

Liquidity of NFT
Collectibles have always had the problem of illiquidity. But with the tokenization of collectibles, rare assets have a greater potential to generate liquidity. The NFT asset segmentation platform (NFT Fractionalization) can now convert ERC721 or ERC1155 into tradable, homogenized ERC20 tokens, an innovation that brings unprecedented liquidity to NFT and other collectibles.

High-value NFT asset fragmentation began with the Metapurse Fund, buyers of Beeple’s Everydays 5000 ($69.3 million worth of NFT). the Metapurse Fund fragmented the work to create the B20 token, which was offered in two installments.

Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT

Coinmarketcap: B20 Token

The benefit of segmenting NFTs into homogenized tokens is that it provides a good mechanism for valuing most NFTs as the market corrects the price of the token. Platforms like Fractional, NFT 20 and Unicly all help collectors segment their NFTs and create communities around them.

Key considerations for collectors include the ability to liquidate NFTs once they are split, control the number of homogenized tokens mined, prevent mass buyouts by “whales”, and the ability to create communities around NFTs. The buyer’s primary consideration is the ability to gain exposure to certified NFTs and participate in the governance process.

Other interesting projects building or scaling in this direction include DODO NFT and DAOfi’s Fraction.Art. The chart below shows the liquidity of multiple fractionalized tokens and ETH pools on the Unicly platform in less than 1 week.

Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT


NFT Asset Ownership Sharing
Having a rare punk is great, but it would be even better to build a punk community and share ownership of NFTs (or collectibles.) Unicly is a fork of Uniswap V2 and has successfully built communities for well-known NFT projects such as Hashmasks, Cryptopunks, Autoglyphs and Doki Doki.

Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT

The financialization of NFT has spawned a new type of community, the NFT DAOS. the first generation of NFT DAOs provided services to manage NFT as well as artists. the Jenny DAO is the next generation of NFT DAOs that curate the NFT collection process and focus on the financialization of these assets. the Jenny DAO is unique in that uJenny tokens represent its holdings of NFT assets and DAO social tokens.

The uJenny is an ERC20 token issued by Jenny DAO on the Unicly platform and represents fractional ownership of all NFTs purchased by the DAO. This will be truly the first asset-backed social token. Currently uJenny can be used to mine UNIC tokens on the platform.

Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT

Jenny Token (uJenny)

NFT Games + Finance
NFTs are now also becoming revenue-generating assets, especially in the gaming space. The concept of blockchain games had become an industry hotspot after the explosion of Cryptokitties in 2017-2018, but a large number of projects in this track have a long-term monthly activity at the level of tens to hundreds of people, for the following reasons: poor playability, poor performance (limited by blockchain performance), certain needs are pseudo-demands (such as Dmarket represented by the project wanting to build a game prop We predict that the future development of blockchain games will have its own characteristics instead of purely copying traditional games onto the blockchain, and the successful projects will definitely have stronger financial attributes and players will get benign and positive economic incentives in playing to form an ecological closed loop. The successful projects will have stronger financial attributes, and players will get positive and positive economic incentives to form an ecological closed loop.

Axie Infinity
Axie Infinity LP performance (below) shows that overall, the LPs in the Uniswap SLP-ETH pool are already generating profits, with gains of around 16%.

Making NFT more valuable: IOSG breaks down four types of financialization practices for NFT

F1 Delta Time
Delta Time’s NFT pledges allow users to increase their earnings by receiving $REVV tokens. At a token price of $0.5034, Apex NFT pledgers will receive $REVV tokens worth $60,000 per NFT. Pledgers of the most common NFT will receive a minimum of $125 in $REVV tokens.

NFT Lending
Splitting NFT into ERC20 is a natural process for the NFT community to achieve financialization of its assets and healthy price discovery. nftx was the first project to create an ETF of NFT. As new NFT index funds such as MASK and PUNK emerge on the platform, NFTX will gain increasing popularity.

At the same time, collectors will quickly realize that NFT index funds in the form of ERC721 are inefficient. Depositing NFTs as collateral in these funds does not guarantee that depositors will receive their original deposits (i.e., the deposited NFTs) when withdrawals are requested.

NFT20 has introduced the Aave-based NFT20 Lightning Loan. Borrowers will borrow the 20 most valuable Hashmasks from the pool, receive an accrued NCT (Name Changing Token), sell it for ETH (the NFT20 DAO will charge a 10% fee) and return the borrowed NFTs.

The next step for the NFT fragmentation platform is to offer lending services to NFT originators and ERC20 fragmentation token holders.

In the exciting field of NFT lending, we predict that the next project to run is a product that can design an effective pricing mechanism and liquidation mechanism to address the risk of impairment of NFT collateral (as most of the high value NFT assets are found in the art and special collectibles sector, the asset price bubble is relatively large). In addition to being the path to the chain, its special design can also naturally express a large number of complex native on-chain assets with precision. From the current on-chain insurance policies, on-chain virtual game assets, the future may appear on-chain behavior logic, credit information NFT asset, and even the emergence of on-chain NFT assets down the chain application scenarios. After the first half of the NFT market orgy, the infrastructure builders / art creators and collectors will always insist on exploring the real value behind it.

All in all, we witnessed NFT on fire in the first quarter of 2021, seeing a growing number of players not only in the crypto space, but even in the non-crypto space as well. From Beeple’s piece Everydays 5000 to Twitter founder Jack Dorsey’s first tweet NFT, all involved high value transactions. Now it seems that individual collectors, NFT funds and DAOs have exquisite NFT collections, and it’s time to make them more valuable: for example, by making them interact with each other (Alethea), by splitting ownership and building communities around these NFTs (Unicly), by using them for lending or continuing to use them for collecting (Jenny DAO). These are all exciting directions.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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