NFTs have certainly been all the craze over the last year. From billionaire businessmen like Elon Musk and Jack Dorsey to everyday people (pun intended) like Beeple, we have definitely been seeing a massive increase in popularity. Though the concept of NFTs is still in its initial stages, the NFT market has tripled in market volume in 2020 alone, to more than a whopping $250 million.
However, this is in no way to say that the current ecosystem is perfect by any means. In fact, there have been several crucial pain points in the NFT landscape that creates a lot of hassle, from the creation of an NFT to its trade.
Pain Points In NFT Marketplaces
- Lack of Technical Knowledge: The NFT marketplace is currently way too complicated to ensure mainstream adoption by day-to-day users.
- Time Consuming: Transforming art into NFTs is an extremely tricky and technical concept. Consumes a lot of time to create and trade NFTs.
- Infrastructure: Transaction costs, scalability, and latency have adversely affected the NFT marketplace.
- Regulations: Attempting to liquefy NFTS like a property will be seen as securities, subject to scrutiny. Self-regulations are required to minimize risks
- Lack of Integrations with DeFi: We are yet to see DeFi protocols enabling fractionalized NFTS, Yield Farming, Collateralization, and liquidity pools in the NFT landscape.
- Auction: A majority of NFTS are traded using an archaic auction model. Causes NFT creators to either settle for a bid or go illiquid till potential bidders emerge.
In order to address these issues, a team of people led by Santosh A, and Prashant Kale have come up with an ingenious platform called Fusible. It’s an interesting take on solving the challenges of the NFT ecosystem as it exists today.
Let’s dive deeper.
How Fusible Reinvents NFT Platforms
Built on the Binance Smart Chain, Fusible is a price discovery protocol, which allows traders to liquefy NFTs and create pools on the platform, and Automated Market Makers like Uniswap. This enables a curve-based price discovery, inspired by Bancor’s Formula. Before Fusible, only sellers and buyers of NFTs were able to participate in the price discovery of NFTs.
However, with the revolutionary Fusible protocol, NFT marketplaces are now exposed to the speculators/buyers of Fungible Tokens of the NFT (Explained in the next section). This enables a stimulated price action, enabling us to identify the value of these Fungible tokens, and by extension their corresponding NFTs.
How Fusible Works
Fusible allows NFT creators to liquefy the value of their NFTs into Fungible tokens from within the platform. A portion of these Fungible tokens is locked with the AMM, while the remaining tokens are available for sale within the platform. This allows sellers to have access to higher levels of liquidity, while not being constrained by the time-bound auction mechanism.
The ownership of the NFT is not transferred through these fungible tokens, but rather just the value of the underlying NFT. Though not the same, think of Fusible as derivatives for NFTs. However, since it’s just the value that’s being traded on the platform, it cannot be classified as securities, and thus does not warrant high levels of scrutiny and regulations.
The platform is supported by its native token, $FUSII. It will be used as the medium of exchange between the participants of the FUsible ecosystem, providing a convenient and secure mode of settlement. $FUSII would also allow its users to participate in the governance of the platform. It also brings into table utilities such as staking and yield farming strategies across different platforms
Details On Fusible
Fusible announced a Testnet Program on the 1st of April and has recently come up with an update on the successful closed testing Beta. They’ve cited major UI/UX developments, and a shift in strategy to better meet the needs of the users, along with an expected Q2 launch of their Mainnet. Apart from PancakeSwap, now available on Trust Wallet too.
If you’re looking for more details on the platform, you can find more details on their:
Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://coinpedia.org/press-release/fusible-is-reinventing-nft-platforms/
