We had a booming July with NFT free-mint projects, the community’s concern at that time was focused on the rapid inflating but missed typical NFT feature building platforms like SudoSwap‘s recent airdrop. Learning from previous shortcomings, Coincu will introduce you to NFT projects built and integrated with DeFi tools.
Indeed NFT is an illiquid asset class, which makes it difficult to price – the most important factor for integrating other financial instruments into this potential market. Here are some projects built to solve the liquidity problem for NFT.
SudoSwap
SudoSwap is a leading product for NFT financial instruments. Sudo’s mechanics make the platform an AMM Dex, making it easier to deal with liquidity and pricing for NFTs. SudoSwap is also a leader in cutting transaction fees along with licensing fees. In addition, Sudo is also helping UniSwap to build a mechanism similar to what is currently being done. The combination of the traditional AMM Dex with the AMM Dex NFT could be the “The Merge” of the NFT industry.
Although it was just launched at the beginning of July 2022, the project has received a lot of attention from the community, in mid-August, the number of users and transaction fees collected from the platform increased significantly. transaction volume reached 1,200 ETH (about 2 million USD). The total trading volume currently reaches 24 million USD.
AssetMerge
As an NFT AMM solves the problem of instant sale of the NFT while pricing each NFT still based on the properties (Rarity, puzzle pieces,…) of that NFT and the general need of the collection. In addition, AssetMerge also has features such as Limit Order, and Flash Swap.
Some special highlights of AssetMerge:
- Instant Swaps: No waiting on buyers or sellers to accept your listing, swap NFTs instantly.
- Low Fees: AssetMerge only charges 1% per swap with 90% of fees rewarded to liquidity providers.
- Unique Item Pricing: Not just floor prices, each NFT is unique so each NFT is priced uniquely.
FloorDAO
FloorDAO is a decentralized NFT market-making protocol. It enables deep, sticky liquidity for all NFT collections contained in the FloorDAO treasury. FloorDAO uses the bond & rebase mechanisms pioneered by OlympusDAO to accumulate productive NFT liquidity, which is then deployed in strategies such as NFTX vaults to generate yield.
FloorDAO is identical to Olympus DAO with the following exceptions:
- FloorDAO applies to NFTs, rather than DeFI.
- The goal of Olympus DAO is to make $OHM a decentralized reserve currency. FloorDAO, in contrast, aims to become a decentralized Market Maker that can offer stable liquidity to NFT projects.
Gumball Protocol
GumBall Protocol is a DeFi NFT creation and trading hub. When an NFT collection is launched on GumBall Protocol, a corresponding amount of ERC20 tokens (GBTs) are also created for that collection. These tokens are specific to the collection and are sold on a bonding curve, with the liquidity from these sales staying in the bonding curves to act as liquidity for the collection holders to utilize. This allows users to easily swap in and out of GumBall NFT positions instantly, stake their NFTs, borrow against them and much more.
GumBall Protocol is a novel approach to creating liquid NFTs. Every GumBall NFT (gNFT) is minted using the corresponding ERC20 of the collection – known as GumBall Tokens (GBT). Each collection on GumBall Protocol will have its own unique GBT token. Every GBT is backed by a liquid asset, such as ETH, controlled by a bonding curve. This allows each gNFT to have a true market value at all times- a gNFT can be sold instantly for the current market price of the collection. GBT price essentially represents a collections’ floor price that is currently available to exit a position.
Verdict
Above is the information of a series of projects integrating DeFi tools for the NFT market, in the future there will be more projects. Investors need to monitor and consider before putting money down to minimize unnecessary risks for themselves.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Ares
Coincu Ventures
Â
Author
We had a booming July with NFT free-mint projects, the community’s concern at that time was focused on the rapid inflating but missed typical NFT feature building platforms like SudoSwap‘s recent airdrop. Learning from previous shortcomings, Coincu will introduce you to NFT projects built and integrated with DeFi tools.
Indeed NFT is an illiquid asset class, which makes it difficult to price – the most important factor for integrating other financial instruments into this potential market. Here are some projects built to solve the liquidity problem for NFT.
SudoSwap
SudoSwap is a leading product for NFT financial instruments. Sudo’s mechanics make the platform an AMM Dex, making it easier to deal with liquidity and pricing for NFTs. SudoSwap is also a leader in cutting transaction fees along with licensing fees. In addition, Sudo is also helping UniSwap to build a mechanism similar to what is currently being done. The combination of the traditional AMM Dex with the AMM Dex NFT could be the “The Merge” of the NFT industry.
Although it was just launched at the beginning of July 2022, the project has received a lot of attention from the community, in mid-August, the number of users and transaction fees collected from the platform increased significantly. transaction volume reached 1,200 ETH (about 2 million USD). The total trading volume currently reaches 24 million USD.
AssetMerge
As an NFT AMM solves the problem of instant sale of the NFT while pricing each NFT still based on the properties (Rarity, puzzle pieces,…) of that NFT and the general need of the collection. In addition, AssetMerge also has features such as Limit Order, and Flash Swap.
Some special highlights of AssetMerge:
- Instant Swaps: No waiting on buyers or sellers to accept your listing, swap NFTs instantly.
- Low Fees: AssetMerge only charges 1% per swap with 90% of fees rewarded to liquidity providers.
- Unique Item Pricing: Not just floor prices, each NFT is unique so each NFT is priced uniquely.
FloorDAO
FloorDAO is a decentralized NFT market-making protocol. It enables deep, sticky liquidity for all NFT collections contained in the FloorDAO treasury. FloorDAO uses the bond & rebase mechanisms pioneered by OlympusDAO to accumulate productive NFT liquidity, which is then deployed in strategies such as NFTX vaults to generate yield.
FloorDAO is identical to Olympus DAO with the following exceptions:
- FloorDAO applies to NFTs, rather than DeFI.
- The goal of Olympus DAO is to make $OHM a decentralized reserve currency. FloorDAO, in contrast, aims to become a decentralized Market Maker that can offer stable liquidity to NFT projects.
Gumball Protocol
GumBall Protocol is a DeFi NFT creation and trading hub. When an NFT collection is launched on GumBall Protocol, a corresponding amount of ERC20 tokens (GBTs) are also created for that collection. These tokens are specific to the collection and are sold on a bonding curve, with the liquidity from these sales staying in the bonding curves to act as liquidity for the collection holders to utilize. This allows users to easily swap in and out of GumBall NFT positions instantly, stake their NFTs, borrow against them and much more.
GumBall Protocol is a novel approach to creating liquid NFTs. Every GumBall NFT (gNFT) is minted using the corresponding ERC20 of the collection – known as GumBall Tokens (GBT). Each collection on GumBall Protocol will have its own unique GBT token. Every GBT is backed by a liquid asset, such as ETH, controlled by a bonding curve. This allows each gNFT to have a true market value at all times- a gNFT can be sold instantly for the current market price of the collection. GBT price essentially represents a collections’ floor price that is currently available to exit a position.
Verdict
Above is the information of a series of projects integrating DeFi tools for the NFT market, in the future there will be more projects. Investors need to monitor and consider before putting money down to minimize unnecessary risks for themselves.
If you have any questions, comments, suggestions, or ideas about the project, please email ventures@coincu.com.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Ares
Coincu Ventures
Â
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