Markets know the price of everything and the value of nothing.
In the following articles, we introduce IotaOrigin and explain how we intend to shape commodity markets through Decentralized Finance (DeFi) to achieve a responsible resource and energy transition while creating value for the economy and society by raising the potential of tokenized commodities and NFTs.
DeFi, DeFi 2.0, …
DeFi innovations and adaptations are kind of like open-heart surgeries. This delicate process has not changed, but the DeFi heart beats slowler now. The blood that used to pump the chambers to near bursting was only a weak serum; it was even synthetic. Inflated tokens in liquidity mining programs and capital-intensive lock-ups that generate artificial TVL created unsustainable high APYs to attract more liquidity.
So, protocols slowly bled out and liquidity could not be maintained in the long run. To solve this , the DeFi ecosystem turned to a new paradigm: DeFi 2.0 was born. Protocol-owned-liquidity (POL), which intensifies Protocols to become part of the lifeblood itself, should get the heart beating again.
With Olympus DAO and its forks, some (3,3)- and (9,9)-game theories, algo-stables, seigniorage, the FTX bankruptcy and the upcoming CEXIT, did DeFi 2.0 already reach its end? OHM plummeted -99%, but does that mean POL is dead?
The OHM price is currently $8, representing the risk free reserves of about $160.000.000 in Olympus DAO as designed. OHM appears to have survived its stress test and POL might therefore also have a glorious future.
D2d -DAO2dominate
Other projects with POL are also exploring new business models. For example, the Redacted Cartel, which is using its liquidity to acquire governance tokens to exert influence in the curve wars, among other. Redacted Cartel takes the meta-governance game to a new level and dominates it with clever incentives to build up sustainable POL and products based on its own POL.
This new form of DAO is called D2d -DAO2dominate. D2d specialize in a specific area of the ecosystem, launch a growth phase through bonding, dominate its market niche with POL and share their success with their members.
D2d opens up possibilities of sustainable concepts that enable benefits for participants in every market niche. This is not only an interesting development, but it could also become the standard for every DAO. However, there is another paradigm shift that is poised to change the market itself.
Shifting NFT Markets
DeFi is turning over a new leaf. With the emergence of NFTs achieving mass adoption, an infrastructure is being built that opens a range of utility options for NFTs. This is currently focused primarily on NFT art collections but will soon be able to apply to Real-World-Assets (RWAs). It opens the way to transform the real economy and map billions of assets on chain, which will result in a multiplication of the entire cryptocurrency market cap. According to token tracker on Etherscan 1/4 of deployed contracts are based on ERC-721 vs ERC-20 tokens.
683,493 ERC-20 Token Contracts found
163,618 ERC-721 Token Contracts found
26,316 ERC-1155 Token Contracts found
It is likely that NFT contracts will be the most widespread, given the coming RWA upswing. Over $16 trillion in illiquid assets will be tokenized by 2030. In the best-case scenario even $68 trillion. For comparison the total market cap of cryptocurrencies is currently around $800 Billion.
We are early…
Turning NFTs into liquidity
Although the onboarding of RWAs on-chain holds extreme opportunities, especially for the NFT sector, the suitable infrastructure is lacking. This relates to one thing in particular: Liquidity. The lack of fungibility of NFTs prevents the creation of liquid markets, which currently prevents their growth.
NFT-AMM
At this point, we would like to introduce our NFT-AMM marketplace, which allows the permissionless formation of NFT-pools for any type of NFT, in order to free the market from its shackles and provide sufficient liquidity.
Users:
- can provide liquidity to NFT-pools and collect swapping fees.
- receive LP tokens for utilization in the DeFi ecosystem.
- can instantly swap NFTs without listing on an illiquid marketplace.
- receive information about an appropriate reference price for their collection.
Creators of NFT collections:
- have a liquid marketplace for their assets.
- can easily launch staking LP-token incentive and reward programs.
- can build new business models based on the interplay of NFT-pools and LP-tokens.
Upcoming features:
- minting launchpad-to-NFT-pool (L2P) solution to enable variety of creator owned and community owned liquidity NFT-pool business models.
- minting launchpad for NFTs on composable price curves, enabling new business models.
- financial fractionable NFTs (FF-NFTs) (time lock NFTs, token backed NFTs) based on the ERC-3525 (Semi-Fungible token standard).
- enable NFT liquidity mining incentive and reward programs.
With the innovation of NFT-pools and the increasing ability to offer fractional NFTs, the problem of providing sufficient liquidity to enable the fungibility and pricing of NFTs is being solved for new asset classes that cannot yet be described, be they based on RWAs, financial fractionable NFTs (FF-NFTs), or Creator Owned and Community Owned liquidity Collections.
We are entering the tokenization of everything (ToE), which enables totally new business models based on NFTs.
ToE will provide a new home for many projects and users and we are ready to support the sector with a marketplace based on NFT-pools. Join our Discord if you are interested, and find us on Twitter to stay up to date.
Alpha projects leading the space:
Follow up
In future articles, we will present how we combine the megatrends of D2d, FF-NFTs, and NFT-pools by establishing the first commodity-based DeFi ecosystem.
