If DeFi meets NFT, is NFTFi the next hotspot?

The NFT market is booming, BAYC has passed 70 ETH, and rising stars such as Doodles and CLONE X are catching up and the bottom has risen. However, unlike financial markets, the NFT industry, which lacks financial resources, has lower capital costs with higher floor costs (the cheapest value in the series), preventing small houses from entering. . Leverage is like Defi Capital.

Of course, the market sees this problem and offers similar products.

About NFTX:

The NFTX mechanism is designed for the ERC20. Traders design ERC20 liquid pools for NFT floor models by creating an NFT floor structure layer in the form of homogenized tokens, allowing investors to invest instead of buying one between their NFTs. 1 or 1/4 of the NFT series.

Advantages of NFTX:

NFTX is now the largest fragmented NFT platform on the market, with no personal ambitions and often focused on a single layer of NFT price floors. Trade with 1/1 and special features do not intend to. In this way, problems such as structural features, cost and evaluation are eliminated, and liquid NFTs are concentrated close to the ground, thus avoiding too many tests and high rates for small families.

Another advantage is that NFTX can collect a lot of liquids and the target is very strong. Before the deadline, there were 102 punctures and 365 masks in the NFTX climate, which is a percentage of the ground pattern. And this TVL would never have been seen in a store. Since Deflamama and other platforms can also count ERC20 tokens when calculating TVL, only ETH in LPs is counted when designating TVL in NFTX. $ 10 million. However, in fact, only Punk turned into a $ 102 PUNK token, with the result split into 65 ETH, which was already worth over $ 20 million. It can be seen that NFTX's TVL is very unreliable. In addition, the names of several NFTX homogenized tokens are easy to remember, for example, CryptoPunks called PUNK and Hashmask called MASK. There are records in Coingecko. Small CEX families throughout the NFT.

Disadvantages of NFTX:

For the lowest price, NFTs may not be suitable for advanced players who want to play with mid to high level gear, but newer NFTX viewers are not intended for NFT players, but more skilled and knowledgeable investors. Buyers are likely to call whatever seems appropriate, if there are only a few. It's nice to take advantage of these people's complaints.

Also, personally I don't think the relationship between NFTX and many NFT holders is strong enough. First, NFTX was designed fairly and without major resources to help them, and second, the NFT community would feel that NFT should be unique. The tokens are more than homogenized to counter the content and spirit of the NFT culture, but the store requires 100 customers and the Defi community still has a large audience. .

Profession NFTX :

In the first quarter of 2022, more NFTFi devices will be developed regardless of whether they have received parts or not. .., in the debate of a hundred schools of thought, the unicorn should disappear, and the NFT industry is booming. SiteThe first quarter of 2022 appears to be the season for NFTFi.

A major problem with NFTFi is the difficult amount of NFT. Some create their own oracle / test, but it is not only difficult but also expensive. Some use social relationships with friends, but this is ineffective and inconsistent. difficult. The easiest way is to calculate the lowest value yourself, then divide by the loan amount to find out how much you can borrow. The simplest and most straightforward model for lower orders is to use NFTX's ERC20 lower NFT token. This will increase the NFTX ERC20 NFT token application scenarios and widen the gap.

FloorDAO is also an opportunity, FloorDAO, which has received a lot of attention recently, is lending 500 ETH from the NFTX vault to the public for sale at a management forum. FloorDAO's acquisition of NFTX ERC20 NFT tokens will not only provide marketers with investment options similar to NFTX benefits, but will also support NFTX ecology, NFTX entry and send closed management pFLOOR tokens to NFTX . Vault provides additional income for NFTX.

The removal of some NFT series from OpenSea also brought more vehicles to NFTX. Previously, OpenSea removed CityDAO V1, Phunk, Sad Frog and PHAYC. Many users have made the switch to Rarible, but the experience of less visible users is so bad that in the end there are many ways to switch to NFTX. If the removal of the NFT Marketplace continues, many conflicting NFTs will continue to be posted for free on NFTX.

Risks of NFTX:

The risk is who your NFTFi audience will be and if you can be popular. The overlap between NFT keys and Defi users is limited. Many NFT readers themselves are not used to using the Defi protocol. Many Defi users are unfair to NFTs and want to right-click on the stored image for publication. Some people think NFT is a bit of a token spike, but overall the NFTFi core is the most dangerous.

Another risk lies in past legal issues, which we will not discuss here.

Horizontal comparison:

Compared to similar products on the market, Fractional raised $ 7 million in seeds alone, and Paradigm led the investment. The survey shows that even schools like Paradigm have high expectations of the NFT break-up.

Unicly and NFT20 also have similar products, but Unicly and NFT20 are smaller, without the large size of closed NFTs and without the correct NFTs which are not currently a threat to NFTX.