Unbox.art Litepaper
The Unbox.art litepaper has two parts:
- Technical description
- Token description
Technical description
By batching NFTs and minting a common ERC20 token representing the NFTs’ average price, NFTs are made fungible, fractionalized, have better price discovery and improved capital efficiency. Applications, to name but a few, include UNI V3 liquidity, NFT diamonds, real estate or land, and, of course, creative NFTs.
For ease of illustration let's consider diamonds. Icecap Diamonds (an Erik Voorhees project) are already listed as NFTs on Opensea. Each “batch” would have the same average $/carat value (any slight difference can be made up for with USDC). The NFTs are sent to a smart contract to create a batch. They are locked and the corresponding ERC20 tokens minted. This creates the potential to turn an entire industry’s non fungible asset base into a liquid, fungible, tradable token. Individual diamond NFTs that were part of a batch when the ERC20 tokens were minted can then be individually purchased with the ERC20 tokens by sending them to the smart contract to release the NFT. The returned ERC20 tokens are burned.
Unbox.art is Degen Labs fork of Blindboxes.io’s solution that locks creative NFTs into “boxes”, the contents of which are randomly allocated, and allows these to be bought by collectors. Blindboxes’ token, which they say will reward box buyers and be used for governance, reached nearly a billion dollar valuation shortly after launch.
Degen Labs will conjoin this opensource technology with the ability to create ERC20s from batches of NFTs to make creative NFT value fungible.
In summary, Unbox.art’s tech achieves three things:
- Creates a new sales channel for creators and a new market for collectors;
- Makes the NFTs tradable as ERC20 tokens;
- Creates a new revenue stream for curators of boxes.
Token description
Note: $UBA is not the ERC20 token described in the technical description that is created from batches of NFTs.
Unbox.art’s token $UBA is similar to Blindboxes’ $BLES (rewards and governance) except for two demand-side additions in our design that leverage our Liquid Vault innovation:
- Part of NFT sale royalties will be swapped for $UBA on its Uniswap market creating regular buy pressure. This $UBA will capitalize the Liquid Vault.
- $UBA will be required as payment to mint NFTs on Unbox.art. This $UBA will capitalise the Liquid Vault.
The Unbox.art Liquid Vault will allow users can claim discounted LP which is locked for a period of time. These two demand side features combined with its Liquid Vault will defend $UBA token’s price.
Learn More
Website: https://unbox.art
Telegram: https://t.me/unboxart
Twitter: https://twitter.com/unbox_art
