NFT’s Road to Financialization #77

NFT is a token form of virtual goods, including digital art, virtual properties, game assets, etc. NFT can also be used in real-life goods distribution mechanisms, such as inventory management, trade finance, ticketing, and other areas.

NFT's Road to Financialization #77

2021.05.17-05.23

Part.1 Insight

The road to financialization of NFT

NFT is a token form of virtual goods, including digital art, virtual properties, game assets, etc. NFT can also be used in real-life goods distribution mechanisms, such as inventory management, trade financing, ticketing, and other areas.

How can you get more value out of your NFT?

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

Making NFT more liquid

NFT assets can share ownership

NFT can generate income

NFT can be used as collateral

NFT's Road to Financialization #77

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 Fragmentation) can now convert ERC721 or ERC1155 into tradable homogenized ERC20 tokens, an innovation that brings unprecedented liquidity to NFT and other collectibles.

The high-value NFT asset split began with the Metapurse Fund, buyers of Beeple’s Everydays 5000 ($69.3 million worth of NFT). the Metapurse Fund split the pieces to create the B20 token, which was offered in two tranches.

Coinmarketcap: B20 Token

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

The main 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 a community 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 a week.

NFT's Road to Financialization #77

Source: https://vbdex.vercel.app/unicly

NFT Asset Ownership Sharing

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

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 the uJenny token represents the NFT assets it NFT assets held 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 as a way to mine UNIC tokens on the platform.

NFT's Road to Financialization #77

Jenny Token (uJenny)

NFT Gaming + 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, bad performance (limited by blockchain performance), certain needs are pseudo-demands (such as Dmarket represented by the project wanting to build a game prop trading market to hit the We predict that the future development of blockchain games will have its own characteristics rather than purely copying traditional games onto blockchain. Axie Infinity

Axie Infinity

Axie Infinity LP performance (below) shows that, overall, LPs in the Uniswap SLP-ETH pool have generated profits, with gains of about 16%.

NFT's Road to Financialization #77

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 NFT as collateral in these funds does not guarantee that depositors will receive their original deposit (i.e., the deposited NFT) when a withdrawal request is made.

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

The next step of the NFT fragmentation platform is to provide lending services for 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). The special design can also naturally express a large number of complex native on-chain assets accurately. From the current on-chain insurance policies, on-chain virtual game assets, the future may appear on-chain behavioral logic, credit information NFT asset, and even the emergence of on-chain NFT assets down-chain application scenarios. After the first half of the NFT market orgy, the infrastructure builders/art creators and collectors will keep 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 is time to make them more valuable: for example, making them interact with each other (Alethea), splitting their ownership and building communities around these NFTs (Unicly), using them for lending or continuing to use them for collecting (Jenny DAO), these are all Exciting directions.

Part.2 Investment and Financing Events

MCDEX closes $7M in funding, V3 to be deployed to Arbitrum mainnet on May 28

MCDEX (MCB), a decentralized perpetual contracts trading platform, announced the closing of a $7 million round of funding led by Delphi Digital and Alameda Research, including a $1 million round of follow-on investment from the MCDEX community. Other participating investors include Multicoin Capital, Distributed Capital, DeFiance, Incuba Alpha, D1 Ventures, DeFi Alliance, NGC, IOSG Ventures, Zeuth, OKEx Blockdream Ventures, Horizon Capital, Bixin Ventures, Digital Renaissance Foundation, Mask Network, Shata Capital, Finlink, Plutus, Magic Ventures, ZBS Capital, and Mars Blockchain, as well as individual investors Meltem Demirors, Wang Feng, and others.

NEAR-based DeFi Protocol Flux Closes $10.3M Seed Round to Become a Prophecy Machine on NEAR

*DeFi Protocol

NEAR-based DeFi Protocol Flux closes $10.3M seed round led by Distributed Global, with participation from Coinbase Ventures, CoinFund, Uncorrelated Ventures, Figment Capital, and Peter Mitchell, CEO of Flux, said the funding will be used to drive DeFi on NEAR, a prophecy machine with high-value protocols and data, and to expand the team to bring in talent.

ArDrive, an Arweave-based file sync app, closes $1.6M funding round

*File Sync App

ArDrive, a file syncing app based on Arweave, closed a $1.6 million seed round of funding from Digital Renaissance Foundation, D1 Ventures, SevenX, IOSG Ventures and The ArDrive team says it will use the funding to make its application more accessible and reliable, and will continue to meet the needs of users for permanent storage.

ArDrive allows users to pay a one-time fee using Arweave’s native token, AR, and upload documents, photos and videos to live on the web forever without fear of data caps or censorship.

DeFi Asset Management Platform Zapper Closes $15M Series A Funding Round Led by Framework Ventures

*DeFi Asset Management Platform

DeFi asset management platform Zapper announced the closing of a $15 million Series A round led by Framework Ventures, with funding from Sound Ventures, Mark Cuban, Nascent, ParaFi Capital, Distributed Global Zapper said it plans to provide developers with Zapper said it plans to launch an app store for developers on the platform and develop a mobile app for Zapper, which currently has 150,000 monthly users and recently surpassed $3 billion in total transaction volume.

Crypto Custodian Copper Closes $50M Series B Investment Round, Co-Led by Dawn Capital and Target Global

*Cryptographic Custody

Crypto-hosting company Copper closed a $50 million Series B investment round, co-led by Dawn Capital and Target Global, with participation from Illuminate Financial Management and existing investors LocalGlobe and MMC Ventures. Copper will use the funding to expand its international reach, open at least two new regional offices, increase its workforce, and develop its product suite. copper closed an $8 million Series A round in February 2020, bringing the total funds raised to date to $60 million.

NFT platform Curio closes new $7M round with Distributed Capital, Protocol Labs, Cabin VC

*NFT Platform

Curio announced the closing of a new $7 million seed round from Fenbushi Capital, Kenetic Capital, Protocol Labs, Cabin VC, LongHash Ventures, Picus Capital, gumi Cryptos Capital and Marc Geiger, former CEO of Global Music, and Rich Battista, former Fox Entertainment executive. Curio officials say the funding will be used to develop its own and NFT-related features. In the coming weeks, Curio will also launch a Curio Rewards program on the platform, which will allow users to earn rewards for trading, airdrops, galleries, holding vintage collectibles and more.

Beam Closes $2 Million Funding Round, Will Also Release Governance Token for Its DeFi Platform BeamX

*Privacy Public Chain

Privacy public chain Beam announced the closing of a $2 million funding round, which it will use to grow its DeFi ecosystem, including enabling AMM, LP, collateral platform, and algorithmic stabilization tokens. Meanwhile, Beam governance is transitioning from the Beam Foundation to the BeamX DAO, and will also release BeamX-specific governance token BEAMX on the Beam blockchain. BEAMX has a total supply of 100 million and will initially distribute new governance tokens through Beam wallet support and by pledging BEAM. In addition, Beam has released version 6.0 and will be developing the DeFi ecosystem with a hard fork of Shaders (smart contracts) enabled at block height 1,280,000. Beam will also be launching a Beam Virtual Machine (BVM) on the mainnet through a hard fork in mid-June and is working with native DApps to build a decentralized bridge to Beam will also launch the Beam Virtual Machine (BVM) on the mainnet in mid-June through a hard fork, and is building a decentralized bridge to ethereum with native DApps, which will later expand to the Coin Smartchain and Boca. Participants in the funding round include Collider Ventures, Altonomy, LionsChain, Alternity Capital, Youbi Capital, AirSpeed18, Bering Waters, Taureon, Patrick Dai Beam launched its privacy-focused DeFi platform “BeamX” on November 19 last year.

Blockchain Lending Startup Figure Technologies Closes $200 Million Series D Funding Round at $3.2 Billion Valuation

*Blockchain Lending

Blockchain lending startup Figure Technologies closed a $200 million Series D round of funding at a $3.2 billion valuation, co-led by 10T Holdings and Morgan Creek Digital and led by DCM, Digital Currency Group, HCM Mike Cagney, co-founder and CEO of Figure, said, “This investment will provide us with the resources we need to further advance our mission of using block This investment will provide us with the resources we need to further our mission of using blockchain to reinvent the financial services industry. In addition, the company announced that Sachin Jaitly, general partner at Morgan Creek, and Stan Mironshik, partner and co-founder of 10T, will join the company’s board of directors.

Blockchain Gaming Platform Forte Closes $185 Million Funding Round at $1 Billion Valuation, Core Products Include Cryptocurrency Wallet

*Blockchain Gaming Infrastructure

Forte, a blockchain gaming infrastructure provider, closed a $185 million round of funding at a $1 billion valuation led by Griffin Gaming Partners, with participation from Union Grove Venture Partners, a16z, Battery Ventures, and Canaan. The Forte team, based in San Francisco, CA, is also a member of the Forte team. The San Francisco-based Forte team is not developing its own games, but rather providing the infrastructure to enable a new type of gaming economy using blockchain technology, and will develop products such as cryptocurrency wallets. forte said they launched their beta platform almost a year ago and went live with their first games, creating 10 million wallets in the past year, and now have 10 games online.

Part.3 The Pulse of the Industry

SushiSwap Officially Launches IDO Launchpad MISO* SushiSwap, a DEXDeFi project, has now launched its IDO launchpad, MISO. The platform includes a Dutch auction, a syndication curve, a tiered system, ETH subscriptions and more.

DeFi aggregator DAOventures to launch vipDVG pledge program* DeFi aggregator DAOventures Singapore DeFi aggregator DAOventures will soon launch a vipDVG pledge program in its new product, where users can pledge DVG and receive vipDVG, which The vipDVG concept is similar to xSUSHI in that a portion of the profits from DAOventures’ DeFi investment products will go into a community wallet, and DVGUniBot will use the funds in the community wallet to buy back the DVG from UniswapV2 and then send the DVG to the vipDVG smart contract. vipDVG smart contract. DAOventures aims to provide users with a diverse range of DeFi investment products, including smart investments, lending, money management, derivatives, decentralized insurance and more, while using a safe, robust and systematic approach to ensure the safety of users’ assets.

Uniswap V3 Universal Liquidity Mining Smart Contract Coming Soon* Hayden Adams, founder of DEXUniswap, tweeted, “Uniswap V3 Universal Liquidity Mining Smart Contract coming soon. This is not a contract specifically for conducting UNI liquidity mining, but a general-purpose mining contract that allows any project to create liquidity incentives in any token on any pair of transactions. In addition, the contract is funded by UNI Grants and developed by the community.

Stablecoin Protocol Standard Protocol enters into a strategic partnership with HAPI, an on-chain cybersecurity protocol *Poca Eco Stablecoin Protocol Standard Protocol enters into a strategic partnership with HAPI, an on-chain cybersecurity protocol HAPI creates an on-chain cybersecurity database for the DeFi project HAPI helps and protects Standardrd Protocol from fraudulent assets and illegal activities by identifying suspicious wallet addresses and ensuring transparency of network data. Also, HAPI has cross-chain smart contract capabilities for Ether, Poca, and Only Chain, and has received investment from GBV this year.

NFT Social Platform DeFine to Expand NFT App with Korean Entertainment Company Abyss* Social NFT Platform Social NFT platform DeFine announced a partnership with Korean general entertainment company Abyss to expand the NFT app. Abyss is a Korean general entertainment company expanding in K-pop, e-sports, and other areas, with artists such as Seonmi, Urban Zakapa, and Got7’s Bam Bam under contract. DeFine aims to create an NFT social platform for all creators, including artists, musicians, internet celebrities, gamers and athletes.

Premier League Champions Manchester City Launch Championship NFT Series, Available May 24 on MakersPlace*NFT Premier League champions Manchester City will commemorate their title win with a series of four NFTs by artist Jon Noorlander, titled “1”. The NFT series will be available on MakersPlace on May 24, with a small number of NFTs to be given out in a free raffle and a portion of the profits from the sale going to Manchester City charities.

Part.4 IOSG Post-Pitch Project Progress

Centrifuge’s public offering on Coinlist will allocate an additional 2.125 million tokens to whitelist users of its lending DApp “Tinlake” * Supply Chain DeFi Protocol aims to connect DeFi to the real world Centrifuge’s public offering on Coinlist will allocate an additional 2.125 million tokens to whitelist users of its lending DApp “Tinlake” * Supply Chain DeFi Protocol aims to connect DeFi to the real world Centrifuge’s public offering on Coinlist will allocate an additional 212.5 million tokens to whitelist users of its lending DApp “Tinlake”, which will be increased from 6.375 million to 5.8 million tokens and will be unlocked over two years at a unit price of $0.38. The remaining two previously announced token sales options are unaffected. In addition, Centrifuge will close whitelist registrations at 23:59 UTC on May 21. The remaining two sales options are: Option 1 (May 26 17:00 UTC to May 31 14:00 UTC), where a single token will be priced at $0.55 and will be unlocked on July 14, 2021; Option 2 (May 26 23:00 to May 31 14:00 UTC), where a single token will be unlocked on July 14, 2021; and Option 3 (May 26 23:00 to May 31 14:00 UTC), where a single token will be unlocked on July 14, 2021. Option 2 (May 26 23:00 to May 31 14:00) is priced at $0.38 per token and the tokens will be released linearly over two years. Both options have a single-address purchase limit of $500 and a supply limit of 17 million tokens.
InsurAce and Dora Factory Launch IDO Platform Insurance Product* DeFi Insurance Agreement DeFi Insurance Agreement InsurAce and Dora Factory, the DAO-as-a-Service infrastructure, are launching the industry’s first IDO platform insurance product. Finance’s IDO auction on May 22nd on Dora Factory’s co-curve auction platform PentaLaunch, protecting the assets of project owners and users throughout the auction. This insurance product will serve as a standardized IDO protection solution for Dora Factory and other ecosystem token issuance platforms to protect their assets.

Smart Contract Platform Moonbeam Launches Kusama Parallel Chain Moonriver Slot Auction Strategy* Smart contract platform Moonriver will use crowdfunding to participate in the auction and will allocate 30% (3,000,000) of the total Moonriver network tokens MOVR to the crowdfunded users. Moonbeam plans to participate in all 8 lease auctions and will participate in at least two consecutive auctions.

DAOSquare and 3Box Partner to Launch Incubation Program*Web3 IncubatorWeb3 Incubator DAOSquare officially announced a partnership with 3Box Labs, a decentralized identity (DID) and open data protocol, to help, through the DAOSquare Incubator and additional forms of collaboration DAOSquare said it will introduce 3box’s DID into the DAOSquare Incubator user system and will launch an incubation program with 3Box based on the decentralized web storage protocol Ceramic and the decentralized cross-platform The incubation program is based on Ceramic, a decentralized network storage protocol, and IDX, a decentralized cross-platform identity standard.

Synthetix Founder Proposes Separating Team Efforts to Focus on V3 and V2x, Four Eco-Projects May Launch Native Tokens* In a release of his plans for the second half of the year, Kain Warwick, founder of the DeFi Synthetic Asset Protocol, said he proposes to separate team efforts to focus on V3 and V2x based on the project’s current progress and the upcoming V3 upgrade. In addition, since Synthetix V2x will take at least 2 to 3 months to implement and migrate to Tier 2 upon completion, it is recommended that the V3 merger be postponed until later this year or early 2022, as V2x As more features are delivered, engineers will be able to join the V3 team. In addition, Kain Warwick said Jordan Momtazi suggested splitting the trading protocol Kwenta into a separate team and possibly launching tokens that would be distributed to SNX holders. Three other eco-projects may also issue tokens, including Thales, a binary options protocol, Lyra, a two-layer native options protocol, and Aelin, a fundraising protocol.

Ocean Protocol, a decentralized data sharing protocol, will participate in EpiK’s open source Chinese voice database* Ocean Protocol, a decentralized data sharing protocol, tweeted that EpiK is building an open source Chinese voice database and Ocean Protocol will participate in the Ocean Protocol will participate in the sharing. EpiK Protocol, a decentralized knowledge graph and data collaboration network, is a secure and trustworthy knowledge graph collaboration platform for co-build, share and benefit.

DeFi Protocol Solv Protocol enters into a strategic partnership with Saffron Finance, a DeFi risk classification protocol* DeFi Protocol Solv Protocol enters into a strategic partnership with Saffron Finance, a DeFi risk classification protocol. The two companies have indicated that they will be working on numerous collaborations in the Financial NFT ecosystem to risk-grade the Solv IC Market. Solv IC Market is the premiere application of Solv Protocol, which aims to express contractual relationships for primary market investments based on the original digital ticket asset standard vNFT, reduce the execution and trust costs of signing contracts between project parties and investors, and facilitate the circulation of project lock-in shares in the market; Saffron Finance is a DeFi protocol that introduces risk selection tranches and enables its users to access customizable risk management. Users of this protocol can choose from different mainstream token liquidity pools (DAI, ETH, SUSHI, etc.) and are able to personally decide how much risk they are willing to take by joining a specific rollover period.

Keep Network will be releasing “Coverage Pool”, a mechanism for passive investors to provide collateralized assets, which can significantly improve capital efficiency* Privacy Layer Protocol Project Keep Network, a privacy layer protocol project, will soon release tBTC version V1.5, which includes a mechanism for passive investors to provide collateralized assets, “Coverage Pool”, which can be released in version V1. Coverage Pool”, which can improve capital efficiency by 1X in V1 and will improve capital efficiency by 10 to 100X in V2. tBTC V2 version, compared to V1, has the following main changes: 1. only requires pledgees to pledge KEEP, while in V1 KEEP and ETH can be used; 2. Reduce the required collateral assets, possibly down to 1-10%, compared to 150% over-collateralization in V1.

FinNexus releases compensation and reboot plan and will destroy 5 million managed reserve tokens* On-chain option protocol On-chain option protocol FinNexus releases compensation plan after hack, will create new token contract, no new token name yet, will be compensated on a 1 for 1 basis to all users who held FNX prior to the hack. Liquidity providers on DEX will receive additional compensation for suffering higher losses; FinNexus Option Protocol (FPO) pledges will be restored to their pre-hack status; and cFNX will also be converted to new tokens on a 1-for-1 basis. In addition, FinNexus will gradually launch new FinNexus protocols, including options and leveraged tokens, and will also launch FinNexus protocols on multiple blockchains, possibly including the Ether Layer 2 scaling solution. Snapshots will be taken at block height at Ether 12452395, Coin Smartchain 7490419 and Wanchain 14677628 and airdropped to users on the corresponding blockchain.

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