PawnFi will soon launch the Early Access event

Source: PawnFi

The NFT financial project PawnFi, backed by top institutions such as DCG and Coinbase Ventures, announced that it will soon launch an Early Access program, allowing the community to apply for early participation in the protocol.

NFT Financial Project PawnFi

PawnFi is an NFT financial protocol focused on unlocking liquidity for digital collectibles. In 2021, it completed a $3 million seed round of financing led by Digital Currency Group (DCG), the parent company of Grayscale, with other investors including well-known Web3 institutions such as Animoca Brands, Dapper Labs, Polygon, and AllianceDAO. Coinbase Ventures, the investment arm of the Coinbase exchange, is also on PawnFi's investor list. Additionally, PawnFi has been featured multiple times by CoinList, being selected as one of the most promising CoinList Seed projects.

Maximizing NFT Liquidity

During the explosive rise of non-fungible tokens (NFTs) in 2022, the concept of "digital collectibles" gained widespread acclaim and adoption in the mainstream market. Towards the end of the last NFT wave, the market's focus began to gradually shift towards applications that endow NFTs with financial attributes.

When it comes to NFT finance, most people first think of NFT lending platforms like ParaSpace, JPEG'd, and BendDAO. This naturally leads to associating PawnFi with NFT lending, but in reality, PawnFi's potential is not limited to collateralized lending.

Due to the inherent "indivisible" nature of NFTs, many mature DeFi applications cannot be compatible with them, which to some extent limits innovation in NFT finance. PawnFi's goal is to break through this bottleneck. It describes itself as the "Pioneering NFT Liquidity Initiator," aiming to unlock capital flow for NFTs, which are considered "non-standardized assets," and to introduce the complexity and multifunctionality of financial markets into the NFT ecosystem.

Unlike the common "peer-to-peer" and "peer-to-pool" models, PawnFi has created a unique P-token protocol mechanism that "standardizes and divides" NFTs. This mechanism serves as the core, enabling users to achieve one-click buying and selling of NFTs, automated market making for NFTs, low-risk collateralized loans, and leveraged financing or hedging that is immune to liquidation.

Just as "collateralized lending" is to the financial market, "NFT lending" is only one aspect of PawnFi's construction of an NFT financial ecosystem. The true vision of PawnFi is to unlock the financial potential of NFTs and promote an ecosystem for efficient capital flow.

Participate in Early Access for a Sneak Peek

To ensure PawnFi is fully prepared for its official launch, the team announced that it will provide an early access program for selected communities and partners. The protocol has already been deployed on the Ethereum mainnet, allowing participants to experience a complete set of functions including trading, lending, and collateralization, helping the team improve user experience and gather feedback and insights on platform features. To reward early supporters, PawnFi will also launch the "Mega Drop" event, calculating users' loyalty points. It is said that users with higher points will have the opportunity to receive airdrop rewards in the form of tokens that PawnFi will soon issue.

(Currently, nearly 200 blue-chip users have qualified for participation.)

NFT players who wish to participate can register via the official website and follow Twitter or join the Discord community for more information.

In addition to earning points by participating in the beta test, each user who gains early access will receive a limited number of invites to share with friends for participation in the early access program, and the inviter will earn an additional 20% reward points from the points earned by the invited users.

The Blue Ocean Market for NFT Financial Applications

Entering 2023, the trading volume and attention in the NFT market have declined, and the overall market activity has significantly decreased compared to 2022. However, this has not dampened the enthusiasm for building NFT financial infrastructure within the ecosystem.

Blur, another player in the NFT space, recently announced the launch of its perpetual lending protocol, Blend, which facilitated loans of 42,000 ETH within just a week of its launch. As of the writing of this article, the total amount of ETH loans has approached 50,000 ETH. This outcome indicates that despite the sluggish market, NFT financial applications still possess considerable market potential.

As dForce founder Yang Mindao stated, NFTs will undoubtedly follow the path of DeFi, ultimately merging trading, derivatives, lending, and stablecoins into a cohesive whole. When the next wave of NFT enthusiasm arrives, NFT financial-related projects are bound to become a focal point for investors. Those who can unlock more efficient capital utilization for NFT collectibles will reap significant rewards.

Can PawnFi compete with existing rivals? Participating in the Early Access experience may provide the answer.