Chat with XCarnival— How to unlock NFT liquidity using NFTfi tools?
Hello XCVers, here is Twitter spaces of the XCarnival and other speakers interview🎉, we got our important part and spread the content “NFT X DEFI — how to unlock NFT liquidity with NFTfi tools” to our community 🛫️
Firstly, we want to thank A&T Capital , one of our investors who organized this campaign and other speakers’s wonderful speech.
So let’s dive into this chat 🏃♀️
Brief intro
During the NFT bull market in 2021, we found the liquidity of NFT was insufficient, so we thought of NFT mortgage & lending. We conceived it from March to April last year, and started to build the product in May. The main problem at the beginning of the startup was to convince investment institutions to have confidence in NFT. Our investors, such as A&T, were able to see forward-looking opportunities for NFT and NFT mortgage & lending, and subsequent developments also proved that the market consensus on NFT was faster than expected.
However, there are still many users who cannot understand NFT lending, so we spend a lot of time on popularizing users. We completed more than 2.7w loans on BSC in the early stage, with an amount of more than 20 million US dollars. At present, we realize that Ethereum is the real center of NFT demand, so we are also deploying Ethereum as the start of our multi-chain strategy.
Q&A 📝
- What is NFT financialization? What potential product needs will there be?
XCarnival (Leo): There are two types of NFTs, avatars that have become popular and financial NFTs that are developing. With the expansion of the NFT market, a large number of assets will be locked in NFTs, similar to appear BTC and ETH before lending; mortgage & lending will help users who hold assets to increase leverage and improve capital efficiency;
Fragmentation is also a direction. At present, the prospects are not very clear. As well as game props NFT mortgage & lending, financial NFT, and the NFT financialization track has not yet exerted force, but the future space is huge.
Master Cui : In analogy to DEFI, NFT financialization is a natural occurrence, and there are three cornerstones: exchanges, mortgage lending, and synthetic assets. Synthetic assets are currently fragmented, and there may be index funds, derivatives, etc. later. Borrowing is the best way to release liquidity, and releasing liquidity is just needed.
LooksRare Mod (0XQ): I think the problem with NFTs is the liquidity is too poor. DEFI combined with oracles, clearing and other functions can bring good liquidity to the market, but NFTs are still very poor except for top blue chips. , if you want to sell, you can only choose the floor price/offer price, so solving the liquidity problem is needed!
XCarnival (Uncle.Kai): The liquidity capability brought by NFT mortgage &lending can be compared to the development of the real estate market. How to better release the liquidity of assets (NFT) is the focus of the market: 1.0 is p2p lending, which is more efficient Low, 2.0 is pool2c’s lending, which will greatly enhance liquidity.
2. What are the advantages and disadvantages of the current solutions to NFT liquidity?
XCarnival (leo): For the mortgage & lending sector, we classify NFT holders as traders or holders. Traders only need to grasp market sentiment and use tools to trade; holders will need mortgage loans to provide liquidity.
Robin:The main problems are:
1).The clearing time is too long;
2).Auction liquidation liquidity is very poor;
3).The risk of oracle attack is too high
I think that the liquidation should first be handed over to platforms such as opensea instead of other platform, but the problem of liquidation on @opensea is quite big. In addition, the use experience of NFT mortgage loan and pooling will be very poor, but the risk of pooling is also a question.
So another core issue is NFT pricing. I think it is possible to consider building an application layer based on @opensea. Buying NFT as a homogeneous token can better improve liquidity; a big problem at present is the NFT project party. There is no way to do liquidity, so we consider making a one-click make offer tool, or you can do some market value management and other tools on the basis of trading tools.
A&T Capital (Sukie): Here I would like to share two better solutions for NFT instant transactions currently in the market.
The first is verse, which realizes the conversion of NFT and Token by programming inside NFT and building a bridge between ERC20 and ERC721, and provides built-in liquidity through AMM by embedding swap internally to achieve instant transactions. However, it is not applied to NFTs with large individual differences in the avatar category, but to some projects that are more homogeneous and similar to social NFTs.
The second is some service providers that call the major NFT market data api integration and data processing at high speed (once every 10 seconds). Other protocols integrate these api data providers so that users can use wallets or exchanges in a short period of time. Users could sold with the highest offer in the market.
Robin: I think the first solution is similar to integrating the content of NFTX into the distribution, but many projects do not have the ability to manage market value from the beginning; the second solution may bring some new gameplay.
XCarnival (Uncle.Kai): In fact, it is a question of value determination. I think this direction can be viewed from three perspectives:
The first is to strengthen the pricing of oracle machines, which may introduce some centralized attributes such as community popularity.
The second is that some liquidity problems can be solved by staging.
The third is that a combination of liquidation and DAO valuation will be a better solution.
XCarnival (Uncle.Kai): This is actually what we call the pool2c model. The pool will support the whitelist proposed by us, and the lending rate will also be a floating interest rate; DAO may be a model suitable for NFT liquidation, and we consider developing a machine dedicated to clearing.
A pleasure to have this chat. We’ll continue with more campaign!
About XCarnival
XCarnival is a lending aggregator that provides easy-to-use financial products. Users can put their NFTs on XBroker as a pledge to borrow money from other lenders. Additionally, users can simultaneously borrow money from Megabox with their altcoins, such as Pancake, Dodo, and many more. XCarnival believes that “everything is collateral”, and works towards unlocking more liquidity for the metaverse space through its innovative practices.
To learn more about XCarnival, visit xcarnival.fi,follow @XCarnival_Lab on Twitter. To understand the full vision of the XCarnival, read the XCarnival litepaper.
