Hi Starvaults is here!

Lulu at Starvaults
4 min readMar 23, 2022

Starvaults is here to build a liquid market for NFTs created in the Flow ecosystem. We aim to provide users with more engaging experiences to interact with NFTs on Flow, through tokenizing the vault NFTs.

There are over 100+ NFT and games projects in the Flow ecosystem, and more are coming. A liquid market is indispensable in this ecosystem, and it will open up endless opportunities for DEFI applications, such as borrowing and lending on NFTs, indices, prediction markets etc.

Flow is the one and only public chain which innovates ways and bridges the gap for people that are not familiar with crypto to participate in web3. Unlike other blockchain, the initial interaction of the applications on Flow does not necessarily require a crypto wallet which demands a lot of learning for new users. The users can taste what it is like to own a special non-fungible immutable moment of their favorite star before going to the hassle of how to secure their decentralized wallet. This approach is helping NFTs penetrate into the mainstream, according to CrytoSlam, since launch Flow is #3 in sales volume and #1 in transactions for NFTs. Over 300 projects are being built on Flow now, of which 100+ projects are under the NFT and Games space. Below “Ecosystem Highlights” and CryptoSlam nicely demonstrate the popularity and vibrancy of Flow’s NFT community.

With the increasing number of NFT projects on Flow and the popularity of Dapps such as NBATopshots that have millions of users, it comes with the need of building DEFI on top of it, so that those assets can be utilized and markets can be more efficient. It also helps stabilize the price of NFTs, decrease their volatility and lead to innate price discovery. However, NFTs are highly illiquid assets. Currently NBATopshots users go to its marketplace to list their items and wait for someone to bid. It can take up to a few weeks before an item is sold. Just like secondary financial instruments, liquidity is highly needed for them to be useful.

Here we introduce Starvaults

What is Starvaults

Starvaults is a collective of vaults that lock up your NFTs and give you fungible tokens in return.

How do we work

1. Collectors inject their NFTs into a vault and get a fungible token in return.

2. With the fungible token, users can participate in Defi, such as staking, lending, trading etc.

3. Users can redeem one random NFT back by sending their fungible token back.

User Benefits

l Liquidity: owners receive instant liquidity when a vault is created.

l Instant price discovery: having NFTs deposited and receiving a token that is tradable on a DEX will create an efficient market. Arbitrageurs will buy if they think the underlying token is lower than its reasonable market value and will sell otherwise to bring the token back to its equilibrium.

l Passive investors’ engagement: a certain segment of investors would like to participate in the NFT markets but do not want to select and manage the NFTs individually. Tokenized NFTs will help them to get the exposure they want without the hassle of going through the grind.

l Yield generation: NFT owners who lock up their assets will receive fees generated by the vault, which gives extra incentives for NFT holders

At starvaults, we think of us as the layer between the genius creators of NFTs and the financial adoption of NFTs. Not only do we intend to provide a great user experience for the NFT collectors , we also would like to help NFT projects to be more liquid, more dynamic and more interactive with other projects in the space.

NFTs are something really special. It is the intersection of art, technology and finance, and it is fun! Moving forward, starvaults would like to be the happiness architect that creates unforgettable moments for our users. There will be team competition vaults/social trading event/prediction markets as well as monthly challenges to give out rewards etc.

Let’s embark on this exciting journey together!