Written by HONKAYO / Miguelrare Produced by getmoni.io
We're excited to announce that we've started digging into the #NFTfi ecosystem and preparing a lot of research content.
Thoughts from Miguelrare "We haven't seen NFTfi bullrun, but I've been waiting for this for two years! Now there are a huge number of NFTfi projects. You can borrow against your nft, use leverage and even use different yearn strategies in the nft world. If you take the NFTfi in general, in my opinion it completely copies the basic idea of various DeFi protocols, in the form of lending borrowing, perps, options, AMM and so on. Just as one of the first AMMs was once Uniswap, so now Sudoswap has given rise to new AMMs. Just as one of the first lending protocols was once Compound, so now NFTfi has given rise to new lending protocols and this chain could go on for a long time. But I must answer you about future NFTfi, so I think in the future we will see a greater influx of institutional money, the development of primarily futures, AMM and lend/borrow. Since these are the simplest forms that have already caught on in DeFi. But they have yet to gain the trust and interest of users in the NFTfi. As for options, I'm still confused. Unfortunately in DeFi this area is not so popular yet, and in #NFTfi even more so."
Lend/Borrow:@NFTfi, @BendDAO, and @the_x2y2 have now taken a large share of the market. Two of them are p2peer, but BendDAO is p2pool. In my opinion, more comfortable solution is p2pool, but why does p2peer dominate the market?
Some problems: First is LTV (Loan-to-value). Let's take two the most popular lending- protocols from this category:
BendDAO.
If you put in collateral BAYC/PUNK, you get 60% of the price. 85 ETH is price - you get - 51 ETH) If you put in collateral Doodles, Azuki and etc. you will get only 30 of the price. So, popular collateral is BAYC there. That's why BAYC prevail on BendDAO.
169 NFTs in the last month. Let's take the price of 1 BAYC in 85 ETH. During the month in the collateral put 169 BAYCs, which equals 14.365 ETH. Of these, 8619 ETH were received by BAYC owners.
If LTV would be higher (for example 80%), more money may use in the nft-market and it would be more attractive for NFT owners.
Also, the third problem is rare nfts. Price of the rare nfts more expensive then floor price.
So, this category has two big problems (LTV and rare nfts). Second, we want to notice one of the most important problem in the NFTfi is liquidity.
Unfortunately, we don't have enough liquidity for nftfi protocols and some solutions.
What this leads to: