Nftfy — Introduction and use-cases
Nftfy — An idea born during the bear market
The crypto winter of 2018 was a difficult period for our industry. A plethora of high-quality projects with overwhelming support from their communities seemed to vanish into thin air almost as quickly as they were born as the glory days of 2017 were perceived by most as a distant memory. As most teams were throwing in the towel, others persevered and worked even harder while some had the tenacity, conviction, and courage to start from square one during this tumultuous period. Nftfy falls into the ladder category. We are thrilled to finally unveil the revolutionary project we have been building throughout the bear market.
What is Nftfy
Nftfy is a robust decentralized open marketplace that enables anyone to effortlessly monetize digital assets with no coding skills required.
First-Mover
A pioneer in the cryptographic space, Nftfy will revolutionize the industry by becoming the first decentralized protocol that enables NFT holders to fractionalize their Non-Fungible Tokens (NFTs) in a trustless and permissionless manner. The highly sophisticated — yet user-friendly — Nftfy platform utilizes smart contracts to fractionalize digital assets into several ERC-20 compliant components while ensuring that each component is backed by the NFT itself.
NFT Mania
The unprecedented explosion in the popularity of NFTs in 2021 and the rapid pace of mainstream adoption have been nothing short of remarkable; even the savviest investors and enthusiasts in the space were unable to predict this phenomenon. While the current excitement surrounding NFTs is great for the industry and cryptocurrency in general, there are certain elements to the market which remain problematic for both NFT creators and investors.
Low Liquidity
A lack of liquidity puts a cap on the number of new investors in the NFT ecosystem.
Investment Risk
Given the highly speculative nature of the current NFT marketplace, current investors take on significant risk as the “value” of any given NFT today can fluctuate significantly within a short timeframe.
Monetization of Assets:
Extremely high-priced NFTs may not be sold for their true “value” within a reasonable timeframe. There is currently no method to fractionalize these assets into smaller ownership components.
Value Proposition
The fractionalization of NFTs as well as the shared ownership mechanisms provided by Nftfy solve these major pain points, thereby paving the way for even more mainstream adoption as well as real-world utility for NFTs.
Fractionalization and issuance of fractions
The primary purpose of Nftfy is to fractionalize NFTs into ERC-20 components. In traditional finance, this process is highly centralized and requires regulatory oversight to guarantee the backing of value for all market participants. The product of multiple intermediaries combined with strict regulation is a lengthy, inefficient process that comes with a high price tag.
Nftfy has solved this problem via an entirely decentralized and software-guaranteed backing mechanism, thereby eliminating the need for all intermediaries. Furthermore, Nftfy allows for legal contractual agreements via the Lex Cryptographia methodology and employs legal contractual concepts via Smart Contracts. The net effect is twofold; a smooth, streamlined process and guaranteed user rights.
Nftfy Use-Cases
NFT Valuation Transparency
At present, the leading NFT markets — Opensea and Rarible — are peer-to-peer marketplaces that lack the level of liquidity required to determine an appropriate/reliable valuation for a given NFT. Nftfy’s decentralized marketplace will solve this issue as the platform will enable users to trade fractionalized components of NFTs which will add a significant amount of liquidity to the market. The added liquidity will allow for much more accurate NFT valuations in real-time.
How Nftfy works
Step 1 — Stake your NFT
Once your NFT is staked and the fractionalization process is complete, one million fractions of your NFT will be deposited into the wallet of your choice and will be available for immediate access.
Step 2 — IDO
Once an NFT has been fractionalized into its ERC-20 compliant components via the Nftfy protocol, all of the traditional functionalities of the current crypto ecosystem can be explored.
At this stage, you will have the capability to create your own Initial Dex Offering (IDO) via a Liquidity Bootstrapping Pool on the Balancer protocol thereby providing liquidity to your NFT fractions. This revolutionary functionality allows for the creation of an entirely new marketplace enabling anyone to easily buy and sell fractions of your NFT. This innovation represents a simple, instant, and trustless method of sharing ownership of NFTs.
$NFTFY is the token of the protocol. It can be farmed by providing liquidity to various pools containing NFT fractions and $NFTFY.
Private Offerings
Issuers of NFTs will have the capability to raise funds on Nftfy from a private group of individuals by selling only a portion of the asset. This will generate a network effect, as numerous interested parties will increase the valuation of a shared asset. This is particularly true for rare NFTs such as Crypto Punks and Hashmasks which are not accessible to the masses due to their high valuations. The increase in liquidity will lead to increased transactions and will ultimately achieve Nftfy’s primary objective — the democratization of NFT ownership.
$NFTFY Token — Utility in Nftfy Ecosystem
The $NFTFY token will be a fungible ERC-20 token and will be the fuel for the Nftfy ecosystem.
$NFTFY will act as a liquidity base (collateral) for fractionalized contracts. Tokens will also boost the ecosystem of the new ERC-20 contracts via liquidity mining.
Who is the Nftfy token/platform for
Digital artists & NFT Entrepreneurs
Potential to realize the maximum value from the NFTs via instant liquidity, fair market pricing, and an enhanced network effect.
Collectors
Opportunity to buy and sell a wide array of fractionalized NFTs at a fair market price.
Speculators
Fractionalized NFT trading, liquidity providing, yield farming, risk sharing, arbitrage opportunities.
Summary and Roadmap
The Nftfy ecosystem will be a gamechanger and an essential tool for anyone who intends to create, collect or speculate on NFTs. Democratization of NFT ownership and increased liquidity are the two key pillars of the protocol.
Stay tuned to our socials as there will be many exciting announcements throughout the coming days, weeks, and months ahead.
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