Non-fungible crypto tokens have taken the world by storm. A foreign concept to the majority merely several years ago, today it seems like everybody knows about the Bored Ape Yacht Club or about the myriad of other trending collections.
And is still, for those in the know, it remains crystal clear that the market for non-fungible crypto tokens today is rather illiquid, especially compared to cryptocurrencies.
Of course, this is partially because Non-Fungible Token (NFTs) are, well, non-fungible compared to their fungible counterparts in the face of Bitcoin, Ethereum (ETH), and others. After all, you do not care which precise Bitcoin you own, but the difference betwixt two Non-Fungible Token (NFTs) can easily cost hundreds of thousands of dollars.
Pawnfi is a project that intends to pioneer Non-Fungible Token (NFT) liquidity in a way where “finance” is more but an exclusive club. The project strives to become a leading solution for Non-Fungible Token (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 crypto tokens, albeit exciting and explosive, is 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.
Pawnfi’s approach is fool-proof, and it intends to introduce a paradigm shift in the way Non-Fungible Token (NFTs) are traded, exchanged, and interacted with altogether.
It comes with a number of interesting and innovative features, such as:
- Comprehensive P- Crypto Token design
- Flash Trades
- Leveraged Non-Fungible Token (NFT) trades
- Instant liquidity
The bottom line is the fact that Pawnfi’s comprehensive solutions are designed to cater to the diverse needs of the Non-Fungible Token (NFT) community and are likewise user-friendly and highly intuitive.
A Closer Look at Pawnfi’s Innovative Features
1st things first, it’s notable that Pawnfi is powered by some of the industry’s best-known VCs, such as DCG, Coinbase Crypto exchange, Polygon, Animoca Brands, and more.
Through the P- Crypto Token, the project intends to introduce a novel approach to trading and interacting with NFTs.
In essence, each Non-Fungible Token (NFT) collection is symbolized by a specific P- Crypto Token, which functions much like digital currencies. This enables trading and usage of Non-Fungible Token (NFTs) in a way that’s reminiscent of financial transactions in Decentralized Finance. For instance:
- Ownership of any BAYC Non-Fungible Token (NFT) would equate to 1,000 P-BAYC and vice versa.
- Ownership of any Azuki Non-Fungible Token (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- Crypto Tokens and NFTs.
These include, but are not limited to:
These represent instantaneous Non-Fungible Token (NFT) and P- Crypto Token exchanges. Holders are able to sell an Non-Fungible Token (NFT) for 1,000 P- Crypto Tokens in real-time and then use the same amount of P- Crypto Tokens to buy an Non-Fungible Token (NFT) from the Pawnfi Non-Fungible Token (NFT) vault.
The interesting bit here is the fact that Pawnfi allows traders to swap P- Crypto Tokens for an Non-Fungible Token (NFT) in two different ways – Specific or Random. To put it another way, users are able to get a randomly chosen Non-Fungible Token (NFT) from the vault if they’re feeling a bit friskier. This feature implies that trades are instant – both purchases and sales.
Non-Fungible Token (NFT) leverage allows the user to borrow P- Crypto Tokens using their own Non-Fungible Token (NFTs) as collateral. The LTV (Loan-to-Value) ratio is fixed at 100%, and both the loan and the interest are denominated in P- Crypto Token. This grants some sort of protection against mid-term liquidation dangers when the floor price of the project tanks.
Additionally, users are able to benefit from a cross-margin lending market. This mechanism is similar to Aave and Compound where Decentralized Finance money market is built up. Nonetheless, with the design of P- Crypto Token, now Non-Fungible Token (NFTs) can play the same roles here. Imagine supplying 2 Azuki as collateral and borrowing Ethereum (ETH) – 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-Fungible Token (NFT), he will possibly earn some P-Azuki as interest revenue.
In essence, Pawnfi’s Consignment guarantees that tokenization isn’t entirely limited to non-fungible crypto tokens that are near the floor prices. This likewise implies that users can rely on immediate payment upon Non-Fungible Token (NFT) sales, eliminating the need of holders to undervalue their listings in a bid to secure quick deals.
To top it all up, Pawnfi’s P- Crypto Token design facilitates instant liquidity needs between different user profiles and integration of Non-Fungible Token (NFT) into Decentralized Finance playbook.
Early Access to Pawnfi’s Exciting Platform
As the team prepares for the grand launch, the Early Access extension to a handpicked number of communities is a strategic move that’s 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 who’s rooting for Pawnfi’s success, the team is unveiling the Pawnfi Early Access phase and engaging the Invite Program. There are numerous perks that it comes with, so do not hesitate to check for more information on the official discord.
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