Zenchain Protocol using NFTs as collateral in DEFI
Zenchain Protocol using NFTs as collateral in DEFI
Background of NFT birth
The boom in blockchain technology need not be limited to fungible currencies alone. Designed specifically for secure, trust-less, and immutable transactions, the possibilities for blockchain in the exchange and maintenance of any variety of digital assets are exponential in scope. More specifically, the future of blockchain may lie in the technology of Non-Fungible Tokens (NFTs). NFTs were first imagined using the Ethereum ERC721 standard, with the introduction of digital information written into smart contracts.
How does Zenchain Protocol combine NFTs & DEFI?
Using NFTs as collateral in Defi
The special of ZenChain is full support cross-chain NFTs and Defi. ZenChain allows NFTs owners to get more powerful with their NFTs, is just not collectible, user can stake their NFTs as collateral in lending & borrowing application, and can borrow some fungible token (ERC20, BEP20, TRC20 …) to using another defi strategy.
The price of NFTs is determined by the Auction system. That means just users and NFTs which using the ZenChain auction system can use their NFTs as collateral.
ZenChain allows users to borrow up to 50% of the highest auction price.
What is NFT in Zenchain Protocol?
NFTs are tokens that we can use to represent ownership of unique items. They let us tokenize things like art, collectibles, even real estate. They can only have one official owner at a time and they’re secured by the Ethereum blockchain — no one can modify the record of ownership or copy/paste a new NFT into existence. NFT-Fi is a non-fungible token with defi traits and is minted by providing liquid to DEX or Lending systems. Imaging this is pear or level up items in traditional games, with the NFTs your power in Defi will be upgraded and make you have some special benefit than others that don’t have any NFT-Fi. Or other words, you can imagine NFT-Fi like a loyalty card or coupon.
Here is some NFT-Fi will be mint with ZenChain:
Fee master: if a user uses or holds these NFTs when using Defi, users can use DEX and another defi with fee benefit. Each Fee master type NFT has special traits: percent decrease fee, time to use, period, the scope of token …
Interest King: if a user uses or holds these NFTs when using Defi, users can earn more LP fee in Dex (normal is 0.03%), or users can earn more lending interest, or reduce borrow interest. Each Interest King token has special traits: percent increase or decrease fee, time to use, period, the scope of token …
Lucky Pass: if a user uses or holds these NFTs when using Defi, users can have changed to mint more NFT-Fi token … To be fair, ZenChain has Random Number Generator power by Oracle module.
Positive consequence
It encourage people to contribute directly to the ecosystem and be benefited by staking their NFTS, defi strategies have made people millionaires in the Defi space and to use Defi to be minted NFT-Fi
Important Links
Website: https://zenchain.co
Facebook: https://www.facebook.com/Zenchainofficial
Telegram Channel: https://t.me/Zenchainofficial
Twitter: https://twitter.com/zenchainco
Github: https://github.com/zenchainprotocol
