What are DefiNFTs? — DEFI + NFTs
Two Powerful Crypto Narratives Merging!
The Universe of DEFI:
DeFi is a short form for “decentralized finance,” an umbrella term for various financial applications in cryptocurrency or blockchain geared toward disrupting financial intermediaries.
Most applications that call themselves “DeFi” are built on top of Ethereum, the world’s second-largest cryptocurrency platform, which sets itself apart from the Bitcoin platform in that it’s easier to use to create other types of decentralized applications beyond simple transactions. Ethereum creator Vitalik Buterin highlighted these more complex financial use cases in 2013 in the original Ethereum white paper. Some other Notable DEFI blockchains include Binance Smart Chain, Polkadot Parachain, etc.
The Boom of DEFI started due to Uniswap. Born at the backend of 2018, Uniswap allows users to trade without an order book, ensuring the absence of third-party interference and a high degree of autonomy and anonymity. On Uniswap, LP’s are held, which can be repleted by liquidity providers. However, liquidity providers’ earnings were only possible through the LP’s trading fees — if liquidity is actively being provided. Once liquidity providers 3exit the pool, earnings will no longer be made.
A lot of you apes who are apeing and still are apeing DEFI Uniswap sales, here are three lessons we hope you have learned 👇
The Universe of NFTs:
A fungible asset is a type of asset that is interchangeable with other assets of the same kind. Some examples of fungible crypto assets include Bitcoin, Ethereum e.t.c. 1 Bitcoin in my wallet is the same as 1 Bitcoin in your wallet, and if we swapped, we both lost no value!
Non-fungible assets are not mutually substitutable in the way fungible assets are. Examples of non-fungible assets in the conventional world of finance can be houses, cars, etc.
NFTs are developed on the ERC-721 protocol. ERC 20 represents a class of tokens that are identical. In comparison, ERC-721 represents a class of unique tokens.
It’s worth noting that non‑fungible digital assets have existed for years. Got a Domain name or Twitter account that others would die for? That counts.
Here is a list of crypto NFTs use cases:
- Collectible and Gaming
- Virtual Assests
- Real World Assets
- Unstoppable Domains
When you buy an NFT, you’re buying a spot on a magical immutable ledger, which exists globally, an image and identity that will outlive every person alive today and will be used for things we can’t even dream of right now.
Thousands of dollars seem cheap for that!
DEFI + NFT — The Parallel Universe.
The Decentralized Finance (DeFi) ecosystem has seen unparalleled growth in 2020, with Total Volume Locked (TVL) surging from 600 million USD to more than 7.5 billion USD, as of September 10, 2020. Source: DeFi Pulse
The non-fungible token space (NFT) has seen explosive growth since the beginning of 2020, with total sales volume exceeding more than 100M USD, the majority happening in the last six months. Source: NonFungible
Individually, each universe is experiencing massive exponential growth, but new projects are beginning to combine the explosive potential of both.
NFTSwaps is a DEFINFT project that aims to solve NFTs liquidity and price problems by allowing users of its platform to be able to create BEP20 representations of their NFTs which are redeemable anytime by the user.
Telegram Chat: https://t.me/nftswaps_io