Non-fungible cryptoย tokens have taken the world by storm. A foreign concept to the majority merely severalย years ago, today it seems like everybody knows about the Bored Ape Yacht Club or about the myriad of other trending collections.
And isย still, for those in the know, it remains crystal clear that the market for non-fungible cryptoย tokens today is rather illiquid, especially compared to cryptocurrencies.
Ofย course, this is partially because Non-Fungibleย Tokenย (NFTs) are, well, non-fungible compared to their fungible counterparts in the face of Bitcoin, Ethereumย (ETH), and others. After all, you doย not care which precise Bitcoin you own, but the difference betwixt two Non-Fungibleย Tokenย (NFTs) can easily cost hundreds of thousands of dollars.
Pawnfi is a project that intendsย to pioneer Non-Fungibleย Tokenย (NFT) liquidity in a way where โfinanceโ is more but an exclusive club. The project strives to become a leading solution for Non-Fungibleย Tokenย (NFT) finance, supplying numerous revenue opportunities for market participants, irrespective of their level of expertise or background.
Pawnfi Stands Over Competition
The world of non-fungible cryptoย tokens, albeit exciting and explosive, isย still very nascent. Several of the challenges that it faces, such as the lack of comprehensive liquidity for newcomers, likewise as the lack of general tooling, are still considerable barriers to entry, even to cryptocurrency natives.
Pawnfiโs approach is fool-proof, and it intendsย to introduce a paradigm shift in the way Non-Fungibleย Tokenย (NFTs) are traded, exchanged, and interacted with altogether.
It comes with a number of interesting and innovative features, such as:
- Comprehensive P- Cryptoย Token design
- Flash Trades
- Leveraged Non-Fungibleย Tokenย (NFT) trades
- Instant liquidity
The bottom line isย theย factย that Pawnfiโs comprehensive solutions are designed to cater to the diverse needs of the Non-Fungibleย Tokenย (NFT) community and are likewise user-friendly and highly intuitive.
A Closer Look at Pawnfiโs Innovative Features
1st things first, itโsย notableย that Pawnfi is powered by some of the industryโs best-known VCs, such as DCG, Coinbaseย Cryptoย exchange, Polygon, Animoca Brands, and more.
Through the P- Cryptoย Token, the project intendsย to introduce a novel approach to trading and interacting with NFTs.
In essence, each Non-Fungibleย Tokenย (NFT) collection is symbolized by a specific P- Cryptoย Token, which functions much like digitalย currencies. Thisย enables trading and usage of Non-Fungibleย Tokenย (NFTs) in a way thatโs reminiscent of financial transactions in Decentralizedย Finance. For instance:
- Ownership of any BAYC Non-Fungibleย Tokenย (NFT) would equate to 1,000 P-BAYC and vice versa.
- Ownership of any Azuki Non-Fungibleย Tokenย (NFT) would equate to 1,000 P-Azuki, and vice versa.
You get the gist.
A Myriad of Capabilities
With that in mind, Pawnfi offers a range of different services as a sort of gateway betwixt P- Cryptoย Tokens and NFTs.
These include, but are not limited to:
Flash Trades
These represent instantaneous Non-Fungibleย Tokenย (NFT) and P- Cryptoย Token exchanges. Holders are able to sell an Non-Fungibleย Tokenย (NFT) for 1,000 P- Cryptoย Tokens in real-time and then use the same amount of P- Cryptoย Tokens to buy an Non-Fungibleย Tokenย (NFT) from the Pawnfi Non-Fungibleย Tokenย (NFT) vault.
The interesting bit here isย theย factย that Pawnfi allows traders to swap P- Cryptoย Tokens for an Non-Fungibleย Tokenย (NFT) in two different ways โ Specific or Random. Toย putย itย anotherย way, users are able to get a randomly chosen Non-Fungibleย Tokenย (NFT) from the vault if theyโre feeling a bit friskier. Thisย feature impliesย that trades are instant โ both purchases and sales.
Leverage up
Non-Fungibleย Tokenย (NFT) leverage allows the user to borrow P- Cryptoย Tokens using their own Non-Fungibleย Tokenย (NFTs) as collateral. The LTV (Loan-to-Value) ratio is fixed at 100%, and both the loan and the interest are denominated in P- Cryptoย Token. Thisย grants some sort of protection against mid-term liquidation dangers when the floor price of the project tanks.
Additionally, users are able to benefitย from a cross-margin lending market. This mechanism is similar to Aave and Compound where Decentralizedย Finance money market is built up. Nonetheless, with the design of P- Cryptoย Token, now Non-Fungibleย Tokenย (NFTs) can play the same roles here. Imagine supplying 2 Azuki as collateral and borrowing Ethereumย (ETH) โ 2000 P-Azuki is now supplied into this lending market and others can borrow from the pool. That is, when the Azuki holder repays and withdraws Non-Fungibleย Tokenย (NFT), he will possibly earn some P-Azuki as interest revenue.
Consignment
In essence, Pawnfiโs Consignment guarantees that tokenization isnโt entirely limited to non-fungible cryptoย tokens that are near the floor prices. This likewise impliesย that users can rely on immediate payment upon Non-Fungibleย Tokenย (NFT) sales, eliminating the need of holders to undervalue their listings in a bid to secure quick deals.
To top it all up, Pawnfiโs P- Cryptoย Token design facilitates instant liquidity needs between different user profiles and integration of Non-Fungibleย Tokenย (NFT) into Decentralizedย Finance playbook.
Early Access to Pawnfiโs Exciting Platform
As the team prepares for the grand launch, the Early Access extension to a handpicked number of communities is a strategic move thatโs aimed toward refining the platform and optimizing its user experience even more.
Through a private beta phase, the team has already joined forces with industry pioneers, testers, audit partners (like Peckshield), and investors of different types.
Nonetheless, to show its gratitude to loyal supporters, early adopters, backers, and everyone whoโs rooting for Pawnfiโs success, the team is unveiling the Pawnfi Early Access phase and engaging the Invite Program. There are numerous perks that it comes with, so doย not hesitate to check for more information on the official discord.
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