First, explain what is NFT? NFT is the abbreviation of Non-Fungible Token, which means "non-fungible token". The simple understanding is that each token is unique, even if they belong to the same main network, but no two tokens are the same. NFT was born in the first half of 2018, and Ethereum confirmed ERC-721 as the new token standard.
On the blockchain, digital cryptocurrencies are divided into two categories: native coins and tokens. The former, such as Bitcoin and ETH, have their own main chain and use transactions on the chain to maintain ledger data. The latter, such as Dai and UNI, are attached to the existing ETH main chain and use smart contracts to record the ledger. Tokens can be divided into two types: homogeneous and non-homogeneous.
Homogeneous tokens, that is, FT (Fungible Token), such as ERC20 as the basic standard, are interchangeable tokens that can be split almost infinitely. Non-homogeneous tokens, or NFTs, are unique and indivisible tokens, such as encrypted cats, tokenized digital tickets, etc.
EthereumEthereumThe first large-scale congestion occurred, which also brought the concept of NFT into flames. Encrypted cats have been bred so far, and there are nearly 2 million cats of different styles. Nearly 90,000 addresses have at least one encrypted cat. The market has traded about 700,000 cats, worth 60,000 ETH.
So this year NFT has become popular again, thanks to DeFi. Then we have to mention the MEME project, which was originally a joke made by Jordan Lyall, the head of DeFi products at ConsenSys, to satirize DeFi. However, the joke came true. The community really created MEME coins and introduced a liquid mining design: players who pledge MEME tokens can earn corresponding points, and then use the points to exchange for NFT collection cards, and this collection card , can be directly linked to OpenSea sales. Subsequently, the MEME currency skyrocketed 15 times within a week, which attracted the attention of the market.
The current main application scenarios of NFT are art collections, games, trading markets, and virtual worlds. Judging from the NFT industry report in the third quarter of 2020, the active applications of NFT are mainly concentrated on Ethereum. It can be said that Ethereum almost takes over 100% of the daily activity and transaction volume of NFT wallets. As of November 2020, the total number of NFT trades reached 15,689 transactions worth $1,236,897.
If we say that the development of the token economy model in the encrypted world is divided into several stages, the token economy of Bitcoin is mining and value storage, Ethereum is the issuance of tokens, and DeFi is liquidity mining. Then NFT is likely to create a new token economic model.
The current value of NFT only exists in the hype of scarce artworks and game props, which obviously has not released the potential of NFT. YFI founder AC also stated in his Twitter that NFT should not be equated with scarcity. AC also emphasized that "NFT is similar to the organizational structure of a database and can be used for foreign keys, definition lists, cross-table lookups and connections.
This is similar to the view of P8s capital investing in innovative DeFi such as Clover42 and Asteria. P8s Capital believes from a technical point of view, "NFT or erc721, erc1155 standards are a leap forward expansion of the erc20 standard. From a programmer's point of view, FT such as erc20 can only record one-dimensional data, similar to a calculator. Now Some Defi products use this globally synchronized and shared decentralized calculator at the bottom layer to perform + - * / calculations on the one-dimensional data at the bottom of these financial products, but this calculation process is open, transparent and verifiable, so now Defi Application products can only be developed to the stage of the money market (Money Market), which is caused by the limitation of one-dimensional data. NFT is the structured data introduced by Ethereum, a public computer, and its meaning is similar to the invention of structured databases , will bring the development of Dapp into a whole new stage.”
Let's take a look at a few NFT projects that are not hyping scarcity
DEGO
DEGO is a DeFi aggregator. It uses a modular design concept. It also incorporates the NFT gameplay in the DEGO system. The NFT of DEGO is called GEGO, which originated from an airdrop.
On the evening of September 24th, the DEGO project team released the airdrop task. After completing a series of routine operations such as entering the group and following Twitter on Telegram, you can receive one of the qualities of V1-V6 GEGO from the 72-hour airdrop registration During the period, 48,000 people poured into the Telegram group, and Twitter fans broke through 3.7. Players who had spent Gas to receive GEGO began to voice their voices in the community. NFT was recycled in China, and GEGO with V5 quality was drawn and sold for 800 US dollars of GEGO in OpenSea.
The reason why it can win the attention of the market is because of the high popularity of airdrop marketing on the one hand, and because of the fun and innovation of GEGO itself on the other hand. GEGO not only has the same collection value as other NFTs, but also has practical properties, that is, it can be pledged for mining.
Aavegotchi
Aavegotchi is an NFT project in the AAVE ecosystem. The founder of AAVE also served as an advisor to Aavegotchi and invested in Aavegotchi. Aavegotchi, also known as "little ghost", is an NFT of the ERC721 standard. Each Aavegotchi is unique, and its value and scarcity are determined by the number of collateral assets, characteristics and "wearable equipment".
The ERC721 NFT behind each Aavegotchi manages an escrow contract address, which hosts various aTokens. As the income in the Aave lending pool continues to grow, the number of aTokens in the wallet also increases, and the number of aTokens stored in the Aavegotchi custody address also increases.
In short, you can get Aavegotchi little ghosts by locking aToken. Each Aavegotchi has multiple characteristics, and different characteristics will affect its scarcity, performance in mini-games, and wearable equipment that can be obtained. Some traits are randomly generated, and some traits can be blessed with equipment by purchasing coupons, participating in activities, etc.
Clover42
Clover42 is a very interesting Russian geek project. Its investor and domestic promotion community partner is the P8s Fund. The financial advantages of the P8s Fund have helped the Clover42 team optimize its financial model.
Clover42 is a DeFi prediction market platform. The project party designed and invented a new underlying automatic market-making mechanism for predicting the track - GSP protocol (Gamification & Simplification Protocol). The underlying framework and pricing mechanism of the prediction market are explained. The product design and market value model design on the platform are coordinated by the Chinese p8s fund team, starting from the track of the NFT+ prediction market, which greatly reduces the threshold for market users to participate and learn, and also solves the problem of insufficient liquidity in the prediction market.
Speaking of the prediction market, I have to mention that Vitalik called for orders several times during the US election, which shows how important the prediction market is in the DeFi field, and it will definitely be the next most important track for DeFi. Its significance lies in that it can solve the problem of decentralized oracle machines, and can form a very important role in the DeFi field - the rating agency (Rating System).
Algorithmically, Clover42 allocates and chains the traditional Parimutuel (same bet lottery) fund pool more reasonably through smart contracts, reflecting flexibility and transparency. At the same time, it applies Banco’s Bonding Curve mechanism to forecast voting The link makes the whole mechanism have the economic theory basis of DeFi pricing, which reflects the rationality and fairness.
Technically, Clover42 makes full use of the multi-dimensional structural features brought by the NFT ERC1155 protocol to tokens on the technical side, mapping and recording game logic, pricing mechanism, mining rate, and user relationships with NFT tokens, making The platform can more efficiently implement the complex logic of the prediction market. On Clover42, NFT tokens can be used as deposit vouchers for predictive voting, or as different levels of mining computing power tools, and the two can be converted, synthesized, and other operations.
In terms of token economy, Clover42 has set up a pullback mechanism, such as the design of the first prize pullback of DeFi9, which predicts the target, which makes the burning of token repurchase deterministic, semi-random and interesting, and will replace the A perfect combination of currency logic and game logic. At the same time, the mining mechanism realizes the algorithm-optimized version of liquidity mining by pledging platform coins and NFT mining certificates. The combination of repurchase and mining effectively and reasonably controls the circulation and deflation of the platform currency C42, making the value of the token a strong consensus based on algorithms.
Therefore, we see the trend of NFT token economic gameplay:
1. NFT can be used as the logic of the mining machine to mine. Therefore, NFT has a very good advantage of fission promotion, that is, the airdrop computing power NFT will not affect the market value management of the platform currency;
2. NFT can be used as the pledge asset of DeFi decentralized finance, and at the same time, it can be accompanied by financial business logic, thereby expanding the functional boundaries of DeFi;
3. NFT can represent different assets in more tracks, and implement model algorithms and deflation mechanisms.
