Unlocking the liquidity of non-standard assets will be the basic service in the "post-NFT era"

My friend Xiao A is an NFT fanatic, and he has many popular avatar NFTs in his wallet. But recently, when he wanted to sell some NFTs, he encountered such a problem: some NFTs that had passed the heat could not be traded even if they reached the floor price;

Not only when selling, but even when snapping up NFTs, Little A doesn't know what the "fair value" of a certain NFT should be.

The same problem also plagues other NFT players. For popular NFTs, one of the few price reference lines we have is the floor price, but the rarity and real value of a certain NFT itself is often unclear.

NFTs are just one category of many non-standard assets (NSAs).With the rise of the Metaverse concept, there will be more and more such non-standard assets. The nature of non-standard assets determines the unsmooth and low frequency of its transaction process.How to unlock the liquidity of these non-standard assets and provide them with an appropriate and fair price will become a basic service in the future.

Today, Odaily will introduce CoinList's latest seed inspection project - non-standard asset liquidity agreementPawnfisecondary title

Pawnfi introduces the concept of pawn

In Pawnfi's view, the market size of non-standard assets will be much larger than standard assets in the future. Specifically, these non-standard assets include:

• NFT, such as tokenized game assets, artwork, collectibles, computing power, etc.;

• Liquidity Provider Tokens (LP Tokens);

• FT with relatively low liquidity, such as altcoins;

• Substitutes, such as tokenization of insurance, bonds, bills, derivatives, etc.;

• Other long-tail assets, such as tokenized real assets.

For these non-standard assets, Pawnfi Protocol has established a decentralized pawn (mortgage loan), lease and resale market.Different from other lending agreements, Pawnfi separates asset ownership, use rights, and income rights, allowing asset holders and users to obtain diversified cash flows and maximize capital efficiency.

Specifically, non-standard asset holders have the following two options when initiating a pawn (mortgage loan) contract:

1. can chooseWhether to sell the asset.Pawnfi's asset sales market can obtain cash flow by reselling asset ownership; asset holders can set their own target sales prices to find suitable buyers.

2. can chooseWhether to lease the asset and divest the right to use the asset at the same time.The leasing market allows asset holders to obtain cash flow by transferring the right to use the asset while retaining the ownership of the asset; and the lessee who wants to "temporarily own" the asset can obtain the right to use the asset by depositing a deposit . After the lease agreement is completed, the liquidation and delivery of the asset will be automatically completed between the lessor, the lessee, and the appraiser.

It should be noted that if the user chooses the lease model, in order to reduce the risk of lease default, Pawnfi generally requires a higher amount of security deposit. Assuming that the collateral is worth 1,000U, Pawnfi will require the lessee to pay a deposit of more than 1,000 U.S. dollars, and at the same time, the owner of the asset mortgages less than 1,000 U.S. dollars (once it is higher than the NFT market price, it will seriously discourage the enthusiasm of the lessee) .

In addition, when mortgaging, non-standard asset holders can choose a single asset mortgage, or multiple assets package mortgage; the category of mortgage assets can be the list of whitelist items already listed on the platform, or they can be added manually Yes, but you need to manually enter the asset smart contract address, ID and other information for evaluation.

“Pawnfi follows the pawnshop mindset. For loan sponsors, the purpose of profit maximization is not to obtain interest income, but to resell undervalued assets to obtain excess returns. Therefore, selling mortgage assets is not only a way for Pawnfi to realize income, but also an innovative way to liquidate assets.secondary title

Introduce the concept of "willing to lend" for valuation

The key to the long-term and healthy operation of the above model is to price assets reasonably.

It should be emphasized that,

It should be emphasized that,The price of the Pawnfi evaluation module is the "base price" of the asset, not the "reasonable selling price"; in addition, Pawnfi will also combine the rental and sales module to set the "upper limit price" of the asset. The combination of the two creates a "real value range", and this range will gradually narrow with the increase of market participants (increased liquidity).For example, if a certain NFT is too unpopular, the range of its asset evaluation price will be very large, and users can only lend out the "reserve price" after mortgaging.

In addition to using smart contract modules, Pawnfi also introduces appraisers for valuation. Appraisers need to meet specific requirements to participate in the appraisal. For example, appraisers need to lock the amount of "willing to lend" in the smart contract to improve the authenticity of appraisal. Suppose the appraiser thinks that an NFT is worth 2000 U, but the appraiser is only willing to lend 1500 U, then 1500 U will be fed back into the system as a reference price (reminds me of some decentralized oracles in the FT field).

Pawnfi launched its first beta version in December 2020; after four iterations of major versions, the final test of the Pawnfi EVM version was completed in September 2021, with priority support for ETH, BSC, Polygon, Arbitrum and Moonbeam. With future iterations of the product, Pawnfi will continue to optimize the entire identification process and develop an effective anti-cheating mechanism.

secondary title

SMRA System Pricing

Odaily has also previously introduced another NFT pricing solution platform:PawnHouse, which introduces two concepts of "private value" and "common value" for valuation, and does not measure the core or unique value of NFT by the final transaction price.

For example, the final transaction price of an NFT is US$500,000, but it represents the "private value" of the final buyer. The "common value" of most buyers.

PawnHouse's goal is to capture all useful and valuable data and information from auctions happening on the platform throughout the auction process, especially in the Simultaneous Multi-Round Auction (SMRA) system (data may also be extracted from other platforms in the future) , and use more open and timely information to encourage and strengthen bidding behavior, and build a "price corridor" for NFT assets through real and dense quotation ranges. All the information captured in the bidding will generate some type of common value of NFT, and PawnHouse uses the common value discovery mechanism as the oracle machine of NFT.

At present, PawnHouse has launched the product and issued the native token PH as a certificate for users to participate in platform governance, profit distribution, token repurchase and other rules. Interested readers can readInterpretation of PawnHouse。