DREP Cross-Chain NFT Mechanism: to Solidify NFT Financialization
If someone tells you that they own a land and show you a jpeg of a digital pixel land, don’t mock them, because that might deserve over 4 million USD. Those expensive ‘jpeg’s are called NFTs (Non Fungible Token), which are derivated to represent unique digital assets such as art collectibles. In its cradle, they were only advocated by collectors and crypto enthusiasts, but now they have shown great value beyond just pictures on blockchain and gradually reveal a huge potential in financialization.
NFT Finance & Financialization
NFTs are able to tokenize a wide range of digital assets, such as IP rights and in-game items so that they can be monetized and gain liquidity on the market. Due to the limited supply, NFTs are naturally endowed with uniqueness and scarcity, hence they are often upvalued and are considered a type of investment. In spite of being involved in payment and investment, the market has seen further methods to unlock more liquidity in NFTs — NFT financialization.
Similar to traditional A&C market, NFTs, if fueled by DeFi, can and will encompass more economic verticals and derivate a resembled financialization landscape, such as NFT lending, pricing, fractionalization and aggregators. With a series of NFT financialization portals surging, It’s not daydreaming to envision a world where all financialized verticals will make extensive use of NFTs, and this requires more liquidity, a more mature market mechanism and solid technology infrastructure as the backbone behind. DREP, as a forerunner of the industry, has incubated a two-fold solution, i.e. Cross-chain Mechanism, to tackle the painpoints in the current market and help NFTs fully realize their potential values not only artistically but also financially.
Facing illiquidity: NFT Market predicaments
- Fragmented ecosystems
The current market is confronted with illiquidity caused by fragmentation in ecosystems and an immaturely developed mechanism. As most projects are built on separate chains such as Ethereum or BSC, and crossing chains leads to higher expenses, users tend to centralize their activities on a certain chain, which will constrain the liquidity of their assets. Major NFT trading markets see a similar situation: as they mature, segregation intensifies. Scattered markets require users to spend more time and energy collecting information and experimenting with functions, adding to the difficulty of on-chain operation, thus less liquidity.
- Underperforming mechanism
Taking a more distant view, the lack of an organized, transparent and reliable mechanism for NFT trading is another point leading to illiquidity. Though markets have various monetizing methods such as NFT leasing, selling and staking available for NFT holders, the current mechanism is still in its infancy, and risk coexists with opportunities. There’s still demand for more specific needs to establish an environment of efficiency.
Crossing Network — Achieve Better Eco-continuity
In response, DREP Crossing Network, acknowledging the critical gaps between ecosystems and markets, is to bridge the clifts and interconnect multiple chains to reach better eco-continuity. Users will enjoy asset interoperability, frictionless operation and economical transferring through DREP Crossing.
With multi-chain support for most layer1 & layer2 chains, Crossing Network is able to greatly reduce on-chain operation costs and improve efficiency. Moreover, DREP Crossing comes up with an optimal solution to enhance interoperability — token mapping, which is to map tokens according to the NFT assets and make it applicable for both ERC-721 and ERC-1155 NFT types. With the token mapping approach, Crossing network ensures users a streamlined swapping process.
In addition to regularly optimizing and testing the functions of Crossing Network, DREP team is planning to develop an NFT trading board where token-NFT trading is possible, and NFT pricing will be optimized for buyers’ reference. This function will undeniably smooth the trading process and reduce gas fee to a greater extent.
DREP Crossing Network: https://www.crossing.network/
DREP Envisions a Cross-chain NFT Market Mechanism
It’s not over yet. As previously revealed, DREP has an NFT product up its sleeve and is sure to be a game changer. The product is meant to be a gateway that amasses market information of all sorts and a tool that helps aggregate liquidity, order book depth and trading pairs into one portal to bridge all the scattered data and functions and achieve one-stop service.
That said, when combined with DREP cross-chain solutions, the upcoming NFT tool is critical to boosting a more efficient cross-chain mechanism for the NFT market, which features a trustworthy and interoperable environment. With DREP’s combined solutions, OTC trading, for instance, will no more be discouraging for many, as transparency of information will be guaranteed to reduce the risky undertaking both ways. Similarly, NFT staking platforms will be able to reach multi-platform synchronicity, saving users more time and energy.
The market calls for a mechanism where all the data, credit and other information are traceable, ownership is verifiable and authenticity is confirmable, where synchronization across multiple platforms is achievable and all sources of income can be pooled into one portal so that users will not need to hop from one platform to another. Such mechanism is no doubt ideal for a prosperous NFT financialization market and DREP is putting every effort to make it happen. There’s still a long way to go, but DREP is confident that we are making every step counts.