Do you know NFTX Token?
Yes, NFTs are the sensation of the moment and for better or worse these projects, like cryptocurrencies, are the vanguard of the moment, evidently in the coming years this type of digital assets will grab the attention and money of investors.
This time it is the turn to meet NFTX, a platform to create liquid markets for liquid non fungible tokens (NFT).
Users deposit their NFT into an NFTX vault and mint a fungible ERC20 token (vToken) that represents a claim on a random asset within the vault. The vTokens can also be used to redeem a specific NFT from a vault.
Benefits include:
LP and vTokens minted to earn performance.
Improved distribution and price discovery for NFT projects
Instantly sell any NFT by minting it as an ERC20 and exchanging it through Sushiswap
Increased liquidity for NFT investors and speculators
To get started you need to create vaults for any NFT asset on Ethereum. Once a vault has been created, any user can deposit eligible NFTs into the vault to create an NFT-backed fungible token called a "vToken".
In the case of vTokens
Anyone can deposit NFTs into an existing vault (or one they have created) to create a fungible vToken representing a 1:1 claim on a random NFT from within the vault.
Users can then pool their minted vTokens in Automated Market Makers (AMM) such as Sushiswap to create a liquid market for other users to trade. Once liquidity and trading volume are established, the NFT-backed vToken enters price discovery and a "floor price" is discovered.
Makes token swap from some blockchain.
Symbiosis Finance: makes token swap of some blockchain, prover liquidity in 1 click.
Minimum price indicates the lowest price for a particular NFT. Users set a floor price by minting and selling vTokens in markets where they believe their NFT is overvalued.
NFTX is helping to establish reliable sources of minimum prices for NFT, enabling its wider application in decentralized finance on Ethereum.
For example, a user has 5 Hashmasks and values 2 of them highly. However, they consider the other 3 Hashmasks to have a lower value than the market price of the Mask vault in Sushiswap. The user deposits these 3 Hashmasks and sells their 3 minted MASK tokens in Sushiswap, which reduces their price and helps to discover the price.
The above process will continue until a minimum price is achieved.
The mask vault allows any Hashmask to be deposited, however, other vaults use an eligibility list that only allows a specific subcategory of NFT to ube deposited. For example, the Punk-Female vault has an eligibility list that includes only CryptoPunk NFT IDs for women. No other CryptoPunks can be deposited.
So knowing the information presented about this project a question arises: who benefits from this token?
Essentially collectors considering the fact that NFTs in their basic form do not generate yield. However, when they are used to mint vTokens, they can access the world of decentralized finance. Simply put, collectors can use NFTX to get more value from their NFTs through the following methods:
By earning interest on protocol fees.
Through trading commissions as a liquidity provider.
-Farming with stable coins using vTokens as loan collateral.
- Content creators
By launching the NFTX protocol. Content creators can earn protocol fees in perpetuity (coming soon) while improving reach and fairness of distribution.
NFTs are typically very illiquid and difficult to lock in pricing. NFTX makes speculation and investment in the NFT market a much simpler process: by accessing the most liquid markets for NFTs
Tracking the price of particular categories of NFT.
The NFTX token is a governance token that can be used to vote on proposals and direct the direction of the organization. In total, there will be 650000 NFTX tokens.
There are two areas to find current vaults on NFTX. V1 vaults can be viewed in the Gallery, as well as a list of all vaults and holdings on the main site.
V2 NFTX vaults can be found in the Explore section of the V2 application.
To buy NFTX Token you have to first acquire ETH and then go to uniswap and buy it. ETH can be bought in any exchange, the most important ones like Binance or Kukoin offer this crypto in a simple way.
Once the ETH is purchased, we have to transfer the etherum to our wallet, it can be trustwallet or metamask.
It is necessary to indicate that the information provided above is for informational purposes, under no circumstances should it be understood as a form of recommendation or advice on this asset.
Posted Using LeoFinance Beta
!LUV
@parisf, sorry! You need more $LUV to use this command.
The minimum requirement is 10.0 LUV in your liquid wallet.
More LUV is available from Hive-Engine or Tribaldex
I had never heard of NFTX token. Thanks for this information, I am increasingly interested in the NFT sector
I am also one of those people interested, so I research these projects to get a better idea of how uncertain NFTs are. Greetings and thanks for your suport.
Posted Using LeoFinance Beta
Its actually a misconception that NFTs are that big of a phenomenon. It's just the noisy evangelists that make it look like that. In reality about 0.1% of crypto holders are also NFT enthusiasts. Most NFTs just transfer through the same set of hands so it looks way more active than it really is.