NFTFI : It is a market mortgaged by NFT. NFT assets provide products and then earn revenue. Lenders have access to mortgage products.
NFT: refers to the token issued based on the Ethereum standard ERC-721; NFT is based on the blockchain and has the characteristics of indivisible, irreplaceable, non-interchangeable, unique, verifiable, negotiable, and tradable. NFT is a concept corresponding to homogeneous tokens, also known as non-fungible products, heterogeneous products, non-fungible tokens, non-interchangeable products, etc.
Advantages of NFTFI
1. Use NFT to exchange things for things;
2. Earn income through platform interest rates;
3. Explore the huge potential market size (NFT = all things, so NFTFI is a mortgage platform for all things);
4. The design of the platform is simple and easy to understand;
5. The fee is very low, which encourages users’ enthusiasm;
NFTFI Disadvantages
1. Property rights: Like traditional transactions, NFT also faces property rights issues. NFT can only prove "token provenance", that is, the transaction exists and has its source, but cannot prove the provenance of the work itself, which is "artwork provenance". Many creator works are minted into NFTs by others and sold without their knowledge or consent;
2. Value: NFT is a virtual asset based on the blockchain. In terms of value assessment, it is necessary to consider the supply and demand relationship both off-chain and on-chain. Off-chain NFT benchmarking products involve a wide variety of products and unfixed value evaluation standards. The application of technologies such as blockchain and smart contracts will affect the value of NFT to a certain extent. At the same time, it is also necessary to consider the corresponding relationship between physical works and NFT virtual works. The value of the NFT subject matter is comprehensively determined by relevant market factors, and the security, existence, richness and other characteristics given by the blockchain will also affect its price;
3. Technology: The underlying infrastructure and ecology of NFT are not perfect enough. There is a lack of safe and easy-to-use NFT wallets. The transaction fees are high. The applicable scenarios are concentrated in works, games and other fields, and there are obvious limitations in the expansion of application scenarios;
NFTFI evaluation : Quality, supply, safety, time, etc. evaluate the value of NFTFI .
1. Quality: The quality of NFT is largely determined by the creator’s expression form and creative level. The richer the expression form and the higher the creative level, the higher the quality of the NFT; and high-quality NFT can obtain higher the value of. The quality dimension measures the NFT object itself and has nothing to do with its technical reality.
2. Supply: The total supply and the generation speed jointly determine the scarcity of NFT. NFT generates value in circulation, but it is not a necessity of life. Increased supply will reduce the marginal benefit of the demand group, resulting in a decrease in the value of NFT. Researchers need to consider the static supply status of NFT, but they cannot ignore the dynamic supply changes determined by the generation speed. Generally speaking, the faster the generation speed, the higher the total supply of NFT, and the lower its value will be.
3. Security: Blockchain provides infrastructure and custody platform for NFT. A long-term safe and stable blockchain system is an important guarantee for the realization of NFT value. For example, Ethereum itself is highly decentralized and secure, so NFTs minted on the Ethereum platform have a higher value than NFTs minted elsewhere. At the same time, NFTs hosted on the main chain are obviously less risky and expected to exist longer than NFTs hosted on side chains, external chains or even off-chains, and therefore have higher value.
4. Time: The underlying works of NFT have the characteristic that their value changes with the time of creation. Blockchain technology, smart contract protocols and cryptoeconomic mechanisms also make the value acquisition of NFT need to consider the time dimension. Although NFT is still in a period of rapid development, NFT minted earlier have shown the characteristics of digital cultural relics, and the market's valuation of them is also increasing.
NFTFI pricing mechanism : fixed price mechanism, auction mechanism, order combination mechanism and bargaining mechanism.
1. Fixed price mechanism: The basis for realizing NFT pricing based on a fixed price mechanism is a certain degree of market liquidity. If there is little or even no recognition and willingness to purchase at the fixed price set by the supplier, effective transactions cannot be reached and NFT pricing cannot be achieved;
2. Auction mechanism: The auction mechanism is a pricing mechanism with a high degree of acceptance. As a heterogeneous commodity, the value of NFT has a certain degree of subjectivity and varies greatly depending on the purchase object and purpose.
3. Order-sharing mechanism: NFT is divided into ERC-20 standard products for trading on decentralized or centralized trading platforms. This is a newer NFT pricing mechanism.
4. Bargaining mechanism: More suitable for NFTs with high scarcity and low substitutability. However, in practice, bargaining transactions for specific NFTs are still very rare;
NFTFI transaction models : collateral model, crowdfunding model, cooperative model and leasing model;
1. Collateral model: Similar to traditional artworks, NFT has a dynamically changing value and can be used as collateral to form a two-way lending market. In the collateral mode, the price of NFT can be determined through online crowdsourcing evaluation;
2. Crowdfunding model: Issue products based on the initial ownership of divisible NFTs , and sell part of the NFT ownership through crowdfunding. When the NFT is officially generated and traded, the profits will be divided according to the product holding ratio;
3. Cooperative model: refers to an organic group formed by cooperation to jointly develop, purchase and sell NFT, and share investment according to the DeFi agreement;
4. Leasing model: refers to leasing NFT by depositing products or collateral that are equal to or in excess of the market value of the NFT, and a certain amount of rent needs to be paid for it. This model is more suitable for game NFT, and users expect to obtain higher game income through rented NFT;
NFTFI application
GRAP : Obtain NFT [CryptoWine] through liquiditytrading, an encrypted painting with a theme of wine bottles. GRAP joins the liquiditytradingmechanism.
WhaleShark : It is mortgaged with NF, and then the product WHALE is obtained. Most of the NFT works mortgaged on the platform are electronic artworks. The platform has launched a liquidity trading mechanism, which can provide funds on Uniswap and then obtain products. The other is to trade the artist's creations to create NFT works and obtain the product [WHALE].