Crafting Finance is supporting NFT Synthetic Fractional Assets
NFT is a hot spot in the crypto market recently, and its momentum could only be compared with DeFi’s at this time last year. The entire block-chain investors are basically focused on the NFT market. Crypto Punks’ transaction prices and transaction volume have repeatedly hit record high, and a large number of jpg-mode NFT avatars have been derived into everyone’s field of vision. Because the market is too hot and the floor price of NFTs is getting higher and higher, most ordinary investors have no chance to buy these NFTs. However, the encryption world has never lacked innovation, and NFT fragmentation has emerged.
Just like traditional artworks, NFT also has the problem of poor liquidity. Due to lack of trading activity, it is difficult to determine market prices. Without real-time prices, it is difficult for the entire NFT to be used as collateral for borrowing. Therefore, NFT is a competitive asset that still has some shortcomings:
1.Lack of liquidity leads to excessive slippage in the buying and selling process
2.Lack of market pricing, hence difficulty to value
3.Not a good collateral,because of low capital efficiency
4.A large amount of capital expenditure is required to have the opportunity to obtain a high price NFT
The purpose of fragmentation is to solve these problems by making NFT divisible, and to improve the convenience of transactions. That is, an NFT can be divided into hundreds, tens of thousands or even billions of fungible tokens. Therefore greatly enhancing its liquidity and market discovery of prices.
As a comprehensive Synthetic assets platform, Crafting Finance can always provide anything the crypto world needs. In fact, the team had already considered support for NFT at the beginning of the design, and as a synthetic asset platform, Crafting has no problem with supporting NFT itself. There has been many potential users of Crafting who are concerned about whether we will support NFT.
Now, we are very excited to announce that Crafting Finance will add the NFT fragmentation function. Crafting’s NFT fragmentation will be dedicated to solving NFT liquidity and trading issues, providing a huge impetus for the development of the industry.
In Crafting, we will support any kinds of NFT for users to stake into the Forge system and forge the factions of the NFT, just like other kinds of synthetic assets. Basically, the system will support two kinds of fractions, SNFTRafts and BNFTRafts.
SNFTRafts is the single-mode, which is suggested to be used for the rare NFTs. The user could set the name, initial price and amount of the tokens. After the mint of the SNFTRafts, the NFT will be locked into the Forge-SNFT-Vault. The NFT will be unlocked only if any user buyout it.
Once a user forges some NFT fraction tokens, the user needs to set a buyout price in case of buying the whole NFT. Anyone who wants to buy the whole NFT needs to offer a price higher than the buyout price and the one who offers the highest price will get the NFT. It works like auctions. And the buyout price can be changed later according to the vote of the token holders. Other users can buy the tokens from the original NFT holder through all different ways like DEX or even centralized exchanges if the token is listed. When voting to change the buyout price, the weighted average will be calculated based on the holder’s choice. If the NFT is bought out, the revenue will be distributed among all token holders according to their shares.
BNFTRafts is the bulk-mode, which is suggested to be used for the common NFTs. The NFT will be minted to the collection-BNFTRafts, of which the name and amount will be fixed. Users who hold enough BNFTRafts could redeem the NFTs locked in the Forge-BNFT-Vault, and the redeemed NFT will be randomly chosen.
Both the SNFTRafts and BNFTRafts can enter the sharing-debt-pool (SDP) or not, and both can be traded in the DEX, Kingsman. We believe Crafting Finance will provide an excellent liquidity solution for the NFT market, it will not only support trading, but also the upcoming NFT lending and even derivatives market.
Crafting Finance Offical Channel
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