Introducing Hyper-Financialization to NFT Space — DREP Visions a Deeper Web3 Penetration
NFT has been in the limelight in 2022, bringing forth an open world of digital revolutions and sharp changes to the entire financial landscape. The potentiality of NFT has been exploited as NFT has become a part of DeFi portfolio, allowing all NFT owners to access economical benefits brought by the vertical markets like gaming, music, etc.
Owing to the nature of NFTs — non-fungibility and fragmented network, the scope of NFT utility is seemingly limited to digital art and frenzied buying and selling. Though NFT has been penetrating into Metaverse, DeFi, Gamefi, etc., cutting-edge issues like circulation, price discovery, and security still stick out from today’s financial solutions, which hinders NFT from stepping farther towards a worthwhile asset. NFT Financialization is just the savior to help achieve greater liquidity and unlock the underlying values of NFT.
The Evolution of NFT Financialization
Being one of the major application scenarios, decentralized finance (DeFi) is like the fuel of the NFT rocket. Through the combination with DeFi protocol, many of the current problems faced by NFT can be eliminated. For instance, NFT-Fi brings more accessibility. For people who know little about NFTs, they might find it hard to be engaged in economic activities related to NFTs. For instance, NFT aggregators can help lead more blockchain users to the NFT space by means of onboarding and industrial data analysis. Other solutions, such as fractionalisation, can give community easy exposure to a portion of NFT which will also drive the mass adoption.
Secondly, NFT-Fi will convey more liquidity. Price and volatility can be the pain points for prospective NFT players. As mentioned before, more investors and players can get involved into NFT space through buying a piece of NFT asset; but most importantly, NFT Financialization brings about price discovery systems that are key to unlocking more user scenarios of NFT, such as being used as collateral to gain cash flow while remaining the ownership. Through the cross-chain networking that aggregating price sources from multiple markets including DeFi and NFT marketplaces, the pricing mechanism for the overall market will be more fair and transparent compared with oracles that leverage single-asset in a standalone ecosystem.
Thirdly, NFT-Fi drives up effectiveness. Due to the technological characteristic of decentralization, an encrypted network that requires no authorization, some cumbersome procedures can be cut through peer-to-peer transactions, the whole trading process would be much more conciser. Besides, NFT aggregators can facilitate easier comparison of NFT prices across different marketplaces and access to yield opportunities on various chains, which would offer investors trustiness and efficiency in terms of making transactions.
DREP 2.0 to accelerate NFT-Fi
To achieve hyper-financialization, DREP is about to launch a financial product that combines NFT data analytics, trading and yielding capability, to unleash the value and liquidity of NFT. At the design level, DREP will respond to customer needs, and present unparalleled regimes to reshape the NFT paradigm.
To lower the entry barrier of NFT industry, DREP will deploy on various NFT ecosystems to provide a panorama of NFT market. NFT nerds can not only get informed of market movements and real-time price info, but also manage and grow their crypto portfolios via one platform. In the meantime, price comparison and discovery can be naturally achieved through multiple sources, whereby users can project the greatest capital gain and discover NFT gems. Our vision is to wipe out frictions across segmented NFT networks and become the structural backbone in the reform of NFT Financialization.
Future of NFT in the world of Web3
As Web3 has started to make its presence especially in the finance sector, it is vital that NFT is empowered with financial elements and functions to propel Web3 development. While NFTs are penetrating deeper into Web3, their utilities keep evolving. Essentially, NFTs have many blockchain characteristics that make them integrable with Web3. For instance, NFT can represent ownership for digital art, music, data, in-game assets, personal records and certificates, and more. In this sense, NFT can be a symbol of community and ticketing that are bound to personal credit, like in the practice of ENS and SBT. Aside from that, NFTs in web3 will unleash huge potential and lay a foundation for mass adoption in the Metaverse.
Conclusion
NFTs are embracing more upcoming trends, and eventually, Financialization will just be the NFT space’s next frontier. It will comprise the Web3 infrastructure and set of markets for NFT-based financial products and services, and unlock mass participation across Web3. Since the entire NFT market infrastructure is blockchain-based, the potential scale of its integration, adoption and value creation is unprecedented.
For more information,
Website: https://www.drep.org/
Twitter: https://twitter.com/DrepOfficial
Telegram: https://t.me/drep_foundation
Telegram Ann: https://t.me/drep_foundation_announcements
