Fungify Pools Is On Mainnet
Hop on in: the pooled liquidity is great.
The landscape is fragmented into a jumble of specialized protocols, each catering to a slightly different use case. If you want to lend and borrow your ETH and tokens, you go to Compound or AAVE. If you want to do the same with your NFTs, your options are a patchwork of specialized protocols that haven’t reached feature parity with legacy DeFi.
Pools is a single lending protocol that combines the elegance of legacy DeFi with the ability to handle your NFT assets – both as collateral and a source of yield. One lending protocol to rule them all. A single, unified digital bank account for all your assets: ETH, ERC20s, and NFTs.
How Is It Different (ft. Why Do I Care?)
While the NFT market has allowed holders to use their digital assets as collateral to secure loans of other assets like ETH or stablecoins, the ability for NFTs to actively generate yield from pooled lending has been notably absent. Fungify Pools closes this gap by overcoming the technical challenges around interest handling and liquidation that were required to add NFT lending pools to a traditionally architected DeFi lending protocol.
For lenders, this means their NFTs are no longer dormant capital. By depositing them into Fungify Pools, these digital assets can now produce a return, aligning them with the behavior of traditional income-generating assets.
For the first time, borrowers can access NFT borrowing pools, enabling them to tap into the utility of an NFT or capitalize on the potential profits from shorting, all available on-demand. This capability can be extended to the long-tail of NFT assets, allowing nearly any NFT to generate yield or be shorted without impacting the solvency of the protocol.
Fungify Pools doesn't just add a new feature to the DeFi landscape; it elevates NFTs to a full-fledged, yield-generating asset class, on par with traditional assets. You can read a full technical description of how this works in the Pools introduction article and docs.
Season 1 of Pools Liquidity Mining
We’re launching a points based liquidity mining program. It will be live before the token launches on Feb 28th. Half of the liquidity mining supply outlined in the tokenomics section will be used for Pools. The other half will be used for the index upon its launch. The tokens will be released into the circulating supply only once the season has concluded. The program will be structured such that liquidity providers accrue escalating multipliers to their points the longer they supply liquidity.
This Is Not a Roadmap
Fungify can be the most powerful lending protocol in the industry. Together as a community and DAO, we can execute to bring this into reality. This is not a roadmap, but a vision.
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