Discover more from Fungify NFT
Allow us to Introduce Ourselves
We’ve been active participants in the NFT space and witnessed it mature, yet we still realize how early it is — there are challenges we need to overcome to unite the worlds of DeFi and NFTs. We’ve spent months pouring over possible solutions and want to share a glimpse of what’s coming.
Who are we? We’re an anonymous team that came together to build the next big primitive. Join us on our journey.
The World as We See It
You poured a bunch of capital into your JPEGs — now what?
Your capital is trapped. You could try your luck with P2P lending marketplaces, but the rates are unpredictable and a counter-party isn’t guaranteed. As a result, the majority of NFTs remain stagnant and illiquid in wallets.
Our goal is to make nearly every NFT as liquid as it can be.
Lessons from DeFi
The first wave of NFT lending protocols attempted peer-to-peer lending models, mirroring the approaches of Dharma v1, dYdX v1, and bZx v1 in an earlier era. These NFT lending protocols struggled to accumulate significant liquidity, failing to incorporate lessons from DeFi history. That is, the common threads binding successful lending protocols: pooled liquidity and market-driven mechanisms that automatically determine key loan terms like interest rates. In these systems, lenders lend passively and loans are originated algorithmically.
We believe that with NFT lending, history might not repeat itself, but it does rhyme. Even though the underlying assets are fundamentally different in nature, a similar evolution needs to occur — NFT loans should be instant, legible, and market-driven.
The Fungify Protocol
A Peek Down the Rabbit Hole…
Original protocols take time, so we’re heads-down, in the weeds, building it. But, we don’t want you to leave empty-handed, so here’s a teaser of what you can expect from us soon.
Originally posted to Medium on February 2, 2022