Fungify x Berachain Competition Guide
The Fungify x Berachain trading competition is a simulated trading arena where participants are given a mock balance of $500,000 to trade and invest using the Fungify protocol. This isn’t just about making trades—it’s about mastering innovative tools, understanding NFT markets, and deploying strategies to maximize your profits by the competition's end. This guide aims to familiarize you with the intricacies of our protocol and the array of strategies at your disposal. Let’s dive in.
Getting Started
Head over to https://bartio.fungify.it/. You'll begin the competition with mock $500k. Here's how to load it into your wallet.
Additional Gas
You can find the official Berachain faucet below. We recommend topping up daily.
Taking positions
At the heart of this competition are key strategies: longing, shorting NFTs, and utilizing leverage. Let's delve into how you can effectively employ these tactics.
Long Positions:
Bullish on an asset? Purchase using OTC. Serving as a dedicated marketplace for this competition, OTC fills the role of platforms like Blur and OpenSea. The prices are anchored to the on-chain floor price of the collections. Trading on the OTC market is possible as long as there's sufficient liquidity. It's important to note that this OTC feature has been crafted specifically for the Fungify competition and is not a standard component of the protocol.
You can supply purchased assets to earn even more income through lending fees.
Leverage for Longs:
Really bullish? Double down and create a leveraged position using Pools.
Take this scenario as an example: You're highly optimistic about the NFT Index. What's next? Leverage those NFT Index Tokens by using them as collateral to borrow USDC, allowing you to buy even more NFT Index Tokens.
You can loop through like this as many times as you want to leverage even further up.
Short Positions:
Fungify introduces the unique capability to short NFTs, allowing you to capitalize when NFT prices drop. Here's the shorting blueprint:
Deposit collateral into Fungify Pools.
Acquire your preferred NFT.
Sell at the OTC desk.
Buy back during price drops.
Conclude by returning the borrowed NFT and covering any interest.
When you’re satisfied with your short position, make sure you remember to close out your position by buying back the asset and repaying your loan.
Leverage for Shorts:
Just like a long position, you can also leverage your short position. Here's how:
Initiate with a collateral deposit in Fungify Pools.
Borrow your NFT.
Head to the OTC desk for a sale.
Use the derived capital as collateral.
Return to step 1 and cycle through.
You can loop through like this as many times as you want to leverage even further up.
When you’re satisfied with your short position, make sure you remember to close out your position by buying back the asset and repaying your loan.
In Closing:
The strategies outlined herein represent but a fraction of the potential maneuvers available within the Fungify platform. For a comprehensive understanding, we direct you to the additional resources linked below. As you embark upon this competition, we encourage a collaborative approach; engage the community, share insights, and refine strategies collectively.
Oh and don’t forget about the rules:
Good luck
About Berachain
Berachain is a high-performance EVM-identical blockchain built on Proof-of-Liquidity consensus. Learn more:
About Fungify
Fungify is a non-custodial NFT peer-to-contract marketplace and algorithmic lending protocol, allowing for instant NFT sales, immediate NFT-backed loans, and a yield-bearing NFT index token. With a small set of elegant primitives, Fungify solves the most challenging problems at the intersection of NFTs and DeFi.
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