From DeFi to NFT-Fi. What’s all the fuss ?
Ever wanted to invest in an ultra-expensive real estate 🏢….
BUT never had the funds💸?
➡️ Enter NFT-Fi
You don’t need an IQ of 150+ to get it right that…
NFT-Fi 🟰 DeFi ➕ NFT.
In its simplest form,
NFT-Fi provides DeFi services to the NFT owners.
4️⃣ most prominent uses-cases of NFT-Fi:
✅NFT Fractionalization
✅NFT Lending and Borrowing
✅NFT Indices
✅NFT Prediction markets
1️⃣ Fractional NFTs:
Ever wanted to own a piece of that ultra-expensive hotel worth US$ 100 Million,
and cut a profit for its capital appreciation ⤴️ over time….
And lack of huuuuuge money made it impossible.
Such an asset can now be listed as an NFT,
converted into, say, 100,000 ERC-20 tokens, each priced at US$ 1,000.
Now that sounds something like ‘within affordable reach’🕺
2️⃣ Lending / borrowing:
Imagine you own / list a house as an NFT whose record of ownership is verifiable on-chain⛓
Now, you can lock this NFT into an NFT-Fi protocol
and borrow💰against it for, maybe, to spin up your next business venture.
Who lends you the funds?
The protocol has lenders registered.
What’s in for the lender?
Interest income…no🚀science.
It will earn interest from your repayments and, eventually, you may unlock your NFT collateral.
WAIT… doesn’t bank🏛️do the same job ? What’s so special here ?
Yes, they do but don’t you know the insane hassle of the paperwork📚that you have to go through
And run pillar to post due to middlemen.
What if I tell you that all such legal and safety requirements get coded in NFT-Fi Smart Contracts
that get executed automatically on-chain
and save you all the cost, ⌛️, and energy ?
You got it now. Great!
3️⃣ NFT Index token:
Ever wanted to get exposure in the top 10 NFT collections around…
But, again, the same old devil:
Lack of💸for such expensive collectibles.
Solution: NFT Index tokens.
Simply put, it’s similar to S&P 500 in the U.S., Nifty Fifty in India, etc.
1 Index token can be a combination of the⬆️top performing NFTs in any vertical.
Like Gaming NFTs🏀,
collectibles,
Profile Pics, etc.
their relative weights can be decided by their relative market caps.
So, you don’t need to own every single NFT to get wider exposure.
But just own 1 single index token at an affordable price and get similar exposure.
Happy👼
and the last one comes…
4️⃣ NFT Prediction Market:
Can immensely help both NFT owners and non-owners in some way.
Those who own:
Can hedge the risk of price volatility🔃of their NFTs that happen due to market fluctuations.
Those who don’t:
Place their predictions on the price movement of an NFT
and earn reward / revenue if their prediction turns out to be correct.
I know it was a lot.
That’s why I will put up another post to describe
how Chainlink and Coinbase Cloud☁️enable NFT-Fi to get going.
Credit: Chainlink Labs
I’m open to feedback, input, and, of course,
some appreciation💛if you gained anything good.
What other use cases can you think of ?
