What value does the UnUniFi Protocol provide to NFT owners, especially of Blue Chip?
Hi,
The NFTFi(NFT×DeFi) market is heating up, to the extent that the following article is published.
This article summarizes current conditions in the NFT market.
Although total NFT sales are down, blue-chip NFT projects like Bored Ape Yacht Club (BAYC), Mutant Ape Yacht Club (MAYC), and Azuki have increased 169%, 199.6%, and about 146% over the past 30 days, respectively, CryptoSlam data showed.
The NFT loan volume on decentralized lending NFT marketplaces Arcade and NFTfi have increased 171% from $30.63 million in Q4 2021 to $83.17 million in Q1 2022, according to data by Dune Analytics user gideontay.
While many NFT owners are selling their digital items, others have a “strong belief” in NFTs and want to hold on to them. This is why NFT lending is increasing, as owners want to use NFTs as assets to gain liquidity and thus generate additional yield elsewhere or purchase more assets.
The following data also exists.https://dune.xyz/gideontay/Dashboard
1. Default rate by loan count = 9.68%
Default rate by loan amount = 6.13%
2. Cumulative loans to 2022/04/18 = 123,320,098 USD
3. Cumulative fees to 2022/04/18 = 198,384 USD
4. Cumulative interests to 2022/04/18 = 3,769,299 USD
In the near future, the above numbers will increase exponentially.
The Value of UnUniFi Protocol for All NFT Owners
We reported above that the NFTFi market is heating up.
Regarding UnUniFi Protocol participating in the NFTFi market, I would like to tell you what UnUniFi Protocol has to offer to NFT Owners, unlike other NFTFi services.
First, as described in this article, existing NFTFi services allow you to borrow ETH or stablecoins using NFTs as collateral, but for most NFT Owners who are not familiar with DeFi, it will be difficult to operate it once borrowed.
Therefore, UnUniFi is considering a system to issue synthetic assets (stablecoins) to the majority of such NFT Owners by pledging NFTs as collateral, which will be automatically operated inside the UnUniFi Protocol to grant rewards to NFT Owners.
This would allow NFT Owners who are not familiar with DeFi to simply pledge NFTs and passively receive rewards.
This system of automated operations will be available as an option for NFT collateral holders, who will be able to simply issue synthetic assets (stable coins) using NFT collateral.
The Value of UnUniFi Protocol for NFT Owners of Blue Chip
Also, for NFT Owners of Blue Chip issues, which is our core target, UnUniFi Protocol can provide additional benefits.
This is because the problems of the existing NFTFi service for NFT Owners of Bluechip issues are becoming clearer.
The existing NFTFi service has a clear challenge that:
・Even if it’s a rare NFT, users cannot borrow more money with a lower assessed value on the NFT because it is Floor priced by Oracle.
・Gas prices are too high.
・P2P matching is not enough to find a partner.
・The period of time users can borrow is too short.
However, UnUniFi Protocol can solve them.
First, it has a market for buying and selling NFTs within the product, and users who want NFTs bid on them. Therefore, UnUniFi’s own market price is set, so even rare NFTs are likely to get good valuation and do not need to wait for matching with someone.
Also, since it is a proprietary blockchain built with Cosmos SDK, the gas fees are much lower compared to Ethereum due to transaction congestion and can be adjusted via on-chain governance.
And although the system requires a small fee to NFT Owners based on the NFT collateral period of time, there is no limit of time you can borrow stablecoins through NFT collateral as long as no settlement occurs.
※Development is underway to achieve the above.
And most importantly, we aim to be a DAO and the operator will not receive any commission income. All of this will be done so that users can smoothly experience the NFT x DeFi world with UnUniFi Protocol.
We have already contacted many NFT Owners of the Blue Chip brand and are preparing to launch the UnUniFi Protocol, which could be our hope for the NFTFi market.
We’re currently running an airdrop campaign for testnet participants! Join and get the native token of UnUniFi.
Stay in touch!
- Follow us on Twitter: https://twitter.com/ununifi
- Join the conversation on Discord: https://discord.gg/gxEkFyu5rn
- Checkout our code: https://github.com/UnUniFi
Disclaimer: This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making investment decisions.
