Introducing NFT 2.0: The Backbone of the Metaverse

The Current Evidence for Mass Adoption of Cryptocurrency

Cryptocurrency is quickly reaching mass adoption. This assertion partially derives from various pieces of fundamental news that have been released within the past couple of months, from Twitter allowing Bitcoin tips on their social media app, to Facebook changing their name to Meta and announcing their plans to integrate cryptocurrency into their metaverse. Even further confirming signs of mass adoption are Adidas partnering with Bored Apes to promote their new NFT line, and billionaires like Kevin O’Leary admitting to holding more Bitcoin than gold.

The Characteristics and Limitations of NFTs

Never have we seen this degree of institutional involvement within the cryptocurrency space, with it being most pronounced within the medium of NFTs. These unique tokens can take the form of anywhere from simplistic art pieces whose price evaluation is solely derived from a collective agreement amongst society, to highly complex NFTs with metadata that can verifiably prove one’s ownership of a product within the real world. However, a massive niche has yet to be filled within the NFT space, and that is to provide accessory incentivization for holding that NFT.

The primary incentive for holding an NFT is the potential for that NFT’s price evaluation within the marketplace to rise over time, thereby providing a profitable opportunity for the holder when they decide to sell. However, in the absence of this price increase, NFT holders are susceptible to either breaking even, losing money, or being completely unable to sell the NFT itself due to illiquid conditions inherent to the NFT marketplace. This single avenue for creating wealth through purchasing and holding an NFT significantly increases the risk of this type of investment and therefore excludes many investors who tend to have a lower risk threshold.

NFTs with DeFi Functionality: The Matry Solution

To tackle this problem, we present Matry: An automated NFT Liquidity Protocol that embeds completely novel functionalities to NFTs of the future. While the metadata attached to conventional NFTs have various use cases, we were never able to securely provide passive earnings for NFT owners who simply hold their NFTs over time, as the algorithmic makeup to ensure this was simply too complex. However, we are proud to announce that, through the utilization of industry-leading Blockchain technology, we have finally cracked the code in this endeavor and have created NFTs with built-in DeFi monetization features, or what we like to call “NFT 2.0”.

But exactly how does this work, and what infrastructure is in place to ensure that NFT holders can securely and consistently earn passively by simply holding an NFT?

What to Expect

Well, future articles will delve more into the technical specifications governing each component within our ecosystem, while this article, instead, will concisely introduce each component and pragmatically show how passive earnings are possible for NFT 2.0 holders.

Seamless Creation of an NFT 2.0 Within Matry

First, we have a pre-built archive of DeFi features that can be integrated seamlessly by creators who mint an NFT 2.0 within our ecosystem. Each NFT creator will have the ability to set the passive earning parameters for the eventual holder of their NFT. It is important to note that passive earning DeFi functionalities are by no means the limit to which this archive can upgrade one’s NFT, but will be what we concentrate on for this introductory article.

Multiple Liquidity Protocols to Ensure the Legitimacy of the Matry Ecosystem

The passive earning rewards for these NFT holders will be in the form of derivative assets (prefixed with an ‘m’), which will be pegged to blue-chip tokens within cryptocurrency (i.e. mBTC is pegged to BTC). The assurance for these derivative tokens to be backed by the token they are representing will be from a collateralization pool provided by our liquidity providers. A derivative asset will only be minted once sufficient collateralization is supplied into the liquidity pool so that one can be confident in the legitimacy of the value derived from these assets.

Secondary liquidity pools will also be set up to allow liquidity for pair trading within the Matry ecosystem. This way, these derivative assets can be traded amongst one another in a highly liquid and streamlined way, thereby allowing the personalization of passive earning rewards for every NFT holder within Matry.

These various liquidity pools and protocols will ultimately foster an ecosystem that can financially benefit while providing passive earnings to NFT holders built within the network. While the NFT marketplace is valued at a staggering $11 billion USD, the technology governing this market sector is still relatively young and currently requires feats of ingenuity to enhance the earning potential and safety parameters for investors within the space.

Conclusion

By creating the next evolution of NFTs through the allowance of a secondary income source, we believe this will promote the onboarding of entirely new types of investors into the NFT space. Just as importantly, this new technology will force current investors to re-evaluate the use case of their NFTs in relation to what NFT 2.0 can provide going forward, and current NFT creators may choose to enhance their own NFT projects within the Matry ecosystem.

Check out our documentation here to better understand the underlying technology and tokenomics that make up the Matry ecosystem.