00:00Welcome back to Decentralized News. Today I just want to talk about NFTX. So this is an interesting
00:06project that I have sort of spoken about before when I was looking at platforms that you can
00:13generate yield on using NFTs. So, you know, if you haven't checked that one out, look for that
00:21on our main site on Decentralized.News or also you can check it out in some of the previous videos.
00:26Give us a like and a subscribe. I'd really appreciate it. So what is NFTX? This is quite
00:34an interesting project and obviously if you're somebody who holds NFTs and you want to earn yield
00:41on those assets, then NFTX might be one because it creates liquid markets for non-fungible tokens
00:49essentially because NFTs, you know, typically they're considered illiquid. It's hard to find
00:55market for buyers and sellers of these assets as easily as you would probably with that token
01:00sometimes. So users who actually deposit the NFTs into a vault on NFTX are able to receive an ERC20
01:10token. They call this a V token. So this V token is pretty much just a claim on a random or let's say
01:19a specific NFT that is in the vault. So if you're a user, for example, you deposit a CryptoPunk
01:26and you receive an ERC20 V token in return, you can then go ahead and then redeem that V token
01:33for a specific punk, not necessarily the one that you actually deposited or a random one for
01:40one percent discount. And V tokens are also able to be staked sort of when they are deposited.
01:50Not necessarily for the one, obviously, the token that you actually deposit, but you can actually
01:56deposit the V tokens themselves and earn rewards if you stake them. So NFTX itself is sort of aiming
02:04to distribute in a better way and also sort of give users a better price discovery process when you're
02:12looking at how to value your NFTs currently. You know, like I said, it's very difficult to find
02:17liquidity for NFTs. It's easy. And sometimes if you can't find liquidity, then, you know, you end up
02:25selling valuable assets for much lower than typically maybe what the floor price is relative to other
02:35users who are holding or not willing to buy at a low price. But if you need that liquidity, say you
02:41need to exit to pay for something, then, you know, of course, but then that's my market dynamics in
02:46general. So to sort of provide a solution to that problem of having very illiquid markets in the NFT
02:54space, NFTX is actually sort of bringing this mechanism to the space, which is, I think, very
02:59innovative. And so you can just pretty much deposit an NFT into an NFTX vault and you as a user can
03:06instantly access NFTs, the liquidity by selling the V token on a decentralized exchange, or you can stake
03:14the tokens and earn yield on the NFT. There's also an option to earn yield by owning a fraction of an NFT.
03:24Investors can also buy a fraction, let's say, of a CryptoPunk and you can stake your claim in the, let's say,
03:30a Punk and ETH liquidity pool, and then you're able to actually earn quite a good yield on that as well.
03:35So check out NFTX. I think it's a very interesting project. Let me know what you guys are looking at in terms of
03:42this NFT metaverse space because I'm really just trying to, I was a bit late to the party. I was always looking at it,
03:50but I was too skeptical about diving right in because I thought there was just a little bit of a market
03:56exuberance. But NFTX itself has its own token. Like I said, you can actually find it for about, right now
04:03it's trading at about just over 50 bucks. It's on Gate.io, on AEX, Hotbit, Pionix and SushiSwap.
04:10All of these exchanges you can find reviews of on our main site as well. You can go to our ecosystems tab if you want to
04:16know which platforms we recommend people trade on. But it is actually a community-owned protocol,
04:22NFTX. So it's a platform for pretty much creating these NFTs that are bagged with ERC-20 tokens. So
04:30it powers also the creation of trading and trading of funds, tracking sought-after NFT collectibles such as
04:38CryptoKitties, Cypherpunks and others. So NFTX was actually launched back in 2021
04:432021 and to provide pretty much a new service to the booming NFT sector through indexing projects.
04:49Although these tokens represent index funds, they're composable and fungible, which means they're
04:54interchangeable for other tokens, which distinguishes them from standard NFT protocols.
04:59So these funds are also actively traded on DEXs such as SushiSwap and Uniswap. And the platform's
05:06unique value proposition is to bring NFTs to light and to high-level individuals trading funds based on
05:13leading NFT tokens such as PUNX or Axis on Uniswap and other decentralized exchanges.
05:20So it's also a community-controlled platform. Like I said, it lets you, you know, place index funds on the
05:27Ethereum blockchain. So the project governance depends on the DAO. So to prevent monopoly and
05:34decision-making, they actually did propose targeting new changes so that, you know, you need about 80%
05:40of all voting tokens in order that, you know, you can get your proposals through. And what makes this
05:47project unique, again, is the fact that, you know, the main business case for the project is to bridge
05:52the gap between DeFi and NFTs. And the platform supports two types of funds, D1 fund and D2 funds.
05:59D2 funds. So D1 fund, you know, have a ratio of a one-to-one backing involving an NFT and an Ethereum-based
06:08ERC-20 contract. So for example, if you own one zombie female, this allows you to redeem precisely
06:15one zombie female randomly as well. On the other hand, the D2 fund, which is also called a top-level
06:22fund, pretty much a balance of pools that make up a combination of D1 funds. So yeah, I think this is
06:30a project that you guys need to be heaped up to if you're not already. And maybe it's also a token
06:37that you might be interested in holding. Currently don't hold it, but definitely on my watch list,
06:42I'm trying to find an entry point that's below 50 bucks. That makes sense. And other than that,
06:48let me know what you guys are also looking at and don't forget to like, share and subscribe
06:52and turn on the notification bell. I'll see you again in the next video. Peace.
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