26/08/2021
The process of collecting digital art, in-game assets or cards is a very easy and fun concept to grasp. Assets like painting and artwork increase in value because of their scarcity. Pricing of scarce NFTs is a zero-sum game; NFT buyers choose what they believe will be in demand and appreciate in value.
On the other hand, NFTs are being promoted as the next big thing in the world of DeFi. The DeFi paradigm has helped NFTs to become more liquid and NFTs expand the market of collaterals in DeFi lending.
The problem with this is that the value of supplied collateral can be easily measured by integrating price oracles which is the typical scenario in standard lending DeFi protocols. This means that the prices will be based from multiple liquid sources either from centralized or DEX. With this, integrating NFTs into DeFi is a little bit difficult as NFTs are not as liquid as cash or tokens.
The only thing we can assume is that the NFT is still worth the same amount as it was last sold for. Also, we have to remember that DeFi is still innovating with this and surely there will be a solution to this such as a dramatic change in the NFT price. Some of the DeFi-native applications such as staking, yield farming and liquidity mining are also being used in DeFi-NFT ventures. Users can stake their assets to earn NFTs, for vice versa.
In upcoming weeks, we will unveil our highly anticipated utility NFTs that will change the landscape of NFTs forever. So stay tuned for updates!
Non-fungible tokens, or NFTs, have recently become the latest blockchain-based innovation to enter the lexicon, and are fast outstripping bitcoin in both hype and popularity. An NFT is a unique unit of data, or token, stored on the blockchain. Unlike cryptocurrency, such as bitcoin, or even traditio...
