Cronos Ecosystem Spotlight: VVS Finance by Jay Lin Cronos Feb, 2023

Fungible tokens are identical, they have the same attributes and value when exchanged. This slump in trading volume was also followed by a slew of controversy around NFT projects. According to the same report by DappRader, OpenSea still remains the leading NFT marketplace, with a 66.58% increase in trading volume last month, reaching $495 million. This represented 58% of the total trading volume of the NFT marketplace. NFT blockchain Ethereum ETHE, +2.32%also holds a dominance of 78.5% of the market. A visitor observes nonfungible token art at an exhibition at the RJ Katamsi Gallery, Indonesian Art University which combines art and technology.

In March 2021, digital artist Beeple sold an NFT collage of his work for $69 million, making him the third most expensive living artist at auction, after David Hockney and Jeff Koons. In September, NFT trading volume had declined by 97% since the start of 2022. OpenSea, which had a trading volume of $4.8 billion in January 2022 saw open finance vs decentralized finance just $250 million in trades by December. In January, Yuga Labs launched a product called the Sewer Pass access pass, which grants holders access to an exclusive online game. Gherghelas said the release of the Sewer Pass collection also generated “a lot of excitement in the NFT world,” and explains why trading volume was up.

If you contribute to ethereum.org, you can claim a POAP NFT. These are collectibles that prove you participated in an event. Some crypto meetups have used POAPs as a form of ticket to their events. Fungible items, on the other hand, can be exchanged because their value defines them rather than their unique properties.

The blocks are “chained” together through the information in each proceeding block, giving it the name blockchain. Information in previous blocks cannot be changed without affecting the following blocks, so there is no way to alter a blockchain. This concept, along with other security protocols, provides the secure nature of a blockchain. With so much going on, you’ll need a way to keep track of all your investments, loans, and trades. There are a host of products that let you coordinate all your DeFi activity from one place. Teams can build out interfaces where you can’t just see your balances across products, you can use their features too.

NFTs are part of a larger economic development in finance capital

VVSGotchi offers game experience and extra farm boost multipliers to all of our Miner Mole NFTs holders. The recent VVSgotchi launch is only the first step, we can see there is still a lot of potential for VVSgotchi. Our team is continuously exploring ways and possibilities to further enhance the user and gaming experiences. Our molefam can expect to see some more quests and fun features released this year. VVS Finance was launched on Cronos in November 2021, and it hits its all-time TVL of $1.4 billion within merely 3 months. We are the first Automated Market Maker Decentralized Exchange natively built on top of the Cronos blockchain with the aim of providing the simplest DeFi venue for everyone.

Another example is using NFTs as collateral for loans on decentralized exchanges . In this case, the NFT is valuable as the loan collateral rather than being traded for another asset. The lending platform Set Protocol has launched a product that allows users to collateralize their NFTs—such as Decentraland land parcels—to trade on decentralized exchanges. According to marketdecipher.com, in 2020, the non-fungible token market is expected to be worth $232 million. This upward trend is likely to continue due to its growing popularity in collectible trading and the ever-increasing importance of decentralized finance , with the market expected to triple by 2031. There are several NFT-collateralised loan platforms like Arcade where NFT holders can have access to a pool of crypto loans using their NFT piece as collateral.

Being able to generate a decentralized and automated economy in addition to or thanks to NFTs, was going to become a reality. This year the first to have this feature in place was Niftymoji and their $MEXP on September 24th but then without explanation, the team performed an exit scam a few weeks later. We analysed the entire market over this time in one of our previous articles but the https://xcritical.com/ term DeFi has become very generic and represents several different definitions. In conclusion, NFTs are essential to the future of a decentralised economy, and even though, it is relatively new to the space, the possibilities are limitless. In fact, it all depends on how people are made to see it sometimes. NFTs are one of those which are not necessarily valued based on true worth.

How to use NFTs in DeFi

NFTs and Ethereum solve some of the problems that exist in the internet today. As everything becomes more digital, there’s a need to replicate the properties of physical items like scarcity, uniqueness, and proof of ownership. Not to mention that digital items often only work in the context of their product. For example you can’t re-sell an iTunes mp3 you’ve purchased, or you can’t exchange one company’s loyalty points for another platform’s credit even if there’s a market for it. NFTs are currently taking the digital art and collectibles world by storm. Digital artists are seeing their lives change thanks to huge sales to a new crypto-audience.

DeFi uses cryptocurrencies and smart contracts to provide services that don’t need intermediaries. In today’s financial world, financial institutions act as guarantors of transactions. This gives these institutions immense power because your money flows through them. Plus billions of people around the world can’t even access a bank account. Here, the monetization of digital content It’s hard to imagine finance and music but then that’s the beauty of blockchain. So when an artist earns ownership rights and subsequent profits from tokenization, they can monetize the value stored in NFT.

Is Bitcoin a Decentralized Finance?

DeFi products open up financial services to anyone with an internet connection and they’re largely owned and maintained by their users. So far tens of billions of dollars worth of crypto has flowed through DeFi applications and it’s growing every day. Creating decentralized applications and platforms for the management and creation of non-fungible tokens is still relatively complicated. Blockchain development is fragmented, many developers are working on their own projects. To be successful there may need to be unified protocols and interoperability. With decentralized finance and nonfungible tokens seeing a meteoric rise, it’s easy to believe crypto apps are finally breaking through.

If you don’t pay back the DAI, your CryptoPunk will be sent to the lender as collateral. This works in a similar way to a website domain name which makes an IP address more memorable. And like domains, ENS names have value, usually based on length and relevance. With ENS you don’t need a domain registry to facilitate the transfer of ownership. In a lot of regular games you can buy items for you to use in your game. But if that item was an NFT you could recoup your money by selling it on when you’re done with the game.

NFTs and DeFi

Those with the most unique demand get the highest amount from the matching pool. This is a fund that rebalances automatically to ensure your portfolio always includes the top DeFi tokens by market capitalisation. You never have to manage any of the details and you can withdraw from the fund whenever you like. For example, if you want to use the no-loss lottery PoolTogether , you’ll need a token like Dai or USDC.

At the moment, figuring out royalties is very manual and lacks accuracy – a lot of creators don’t get paid what they deserve. If your NFT has a royalty programmed into it, you’ll never miss out. In these cases, each NFT would still have a unique identifier (like a bar code on a traditional “ticket”), with only one owner. The intended scarcity of the NFT matters, and is up to the creator. A creator may intend to make each NFT completely unique to create scarcity, or have reasons to produce several thousand replicas.

How are non-fungible tokens used?

We are transitioning from finance to decentralized finance, DeFi, utilizing DLT as the “rails” of all financial and economic activities. Decentralized finance, or DeFi, refers to a system of applications that aim to recreate traditional financial instruments with cryptocurrency. With ecology, interoperability and regulation as our watchwords, we can begin work on building the actual apps and other infrastructure that will allow users to leverage the power of a new economy. By owning this NFT, people will have the opportunity to run an EarthNode, with the ability to validate transactions and secure the network. Node operators are rewarded with the native token for processing transactions and giving users access to the decentralised mobile network. Decentralized finance uses the blockchain technology that cryptocurrencies use.

• However, this is more just a default feature of tokens on Ethereum.
• An NFT ticket for an event can be traded on every Ethereum marketplace, for an entirely different NFT.
• A key innovation of decentralized finance is accessing loans without going through a centralized intermediary like a bank.
• Our molefam can expect to see some more quests and fun features released this year.
• The network clears the charge and requests a payment from the bank.
• For the Doodles NFT collection, holders gained the ability to create custom wearables for their original Doodles avatars on the Flow blockchain.

So right now a lot of insurance products in the space focus on protecting their users against loss of funds. However there are projects starting to build out coverage for everything life can throw at us. A good example of this is Etherisc’s Crop cover which aims to protect smallholder farmers in Kenya against droughts and flooding. Decentralized insurance can provide cheaper cover for farmers who are often priced out of traditional insurance. There’s a booming crypto economy out there, where you can lend, borrow, long/short, earn interest, and more. Crypto-savvy Argentinians have used DeFi to escape crippling inflation.

Simple Ways You Can Reduce the Cost of Your Banks Utilities

Their value stays pegged to an another asset, usually a popular currency like dollars. There’s a premium to financial services because intermediary institutions need their cut. One of bitcoin’s key innovations was the capacity for two users to make digital payments directly with one another. This is easy to do in the physical world using paper or metal money. But until bitcoin came along, the only way to do so electronically was through a bank or payment company like PayPal. DeFi is an amalgam of cryptography, finance, and software development, and it tends to be shrouded with its own lexicon and jargon.

NFTs are unique, immutable tokens representing any asset, including video game items, digital art, and real-world property. Unlike traditional fiat currencies, NFTs cannot be duplicated or div; this is into smaller units. This makes them ideal for use cases where ownership needs to be verified and tracked. Decentralized finance lending and non-fungible token platforms aim to solve several problems that centralized financial institutions still need to address adequately. Among these are high fees, lack of access to credit, and the need for more transparency. NFT decentralized finance link, it is important to know the type of assets which can be tokenized.

As a result, liquidity providers could easily evaluate their capital and addressing the liquidity build-up in the curve model. Subsequently, liquidity providers could also again higher exposure to desired assets alongside achieving reductions in downside risk. At the same time, it is also difficult to round up on specific mechanisms for ensuring determining the value of NFTs.

The trading volume for non-fungible tokens hit $10.67 billion in Q3 2021, an increase of 700% from the previous quarter. Typically, non-fungible tokens are not divisible, in the same way that you cannot send someone part of a concert ticket; part of a concert ticket wouldn’t be worth anything on its own and would not be redeemable. However, in recent months some investors have experimented with the concept of fractionalized NFTs, though they remain a legal grey area and could be seen as securities. You can send someone one Bitcoin and they can send one back, and you still have one Bitcoin. (Of course, the value of Bitcoin might change during the time of exchange.) You can also send or receive smaller amounts of one Bitcoin, measured in satoshis , since fungible tokens are divisible.