ERC-404 is a project that is easily overlooked at first glance.

For example, when we see the first ERC-404 project Pandoras Box, if we think Isnt it just another blue box? In addition to the blue box, there are mountains of garbage boxes, then gg Already...

For another example, when we see that most people are talking about the unity of graphics and currency, if we think isnt it just another Solana peanut, just in Ethereum, then it is gg again. ..

We must be curious and patient enough about new projects, and carefully examine each project like Yang Zongwei peeling off an onion layer by layer, so that we can accurately identify the existing and repeated value. After twisting and turning in logic, there is still a new clue.

NFT liquidity optimization, And more

In fact, I personally think that ERC-404 is the most interesting liquidity optimization solution so far and adds the most possibilities to the NFT series. It can even be said to be a paradigm innovation of NFT. Let’s take Pandora’s Box as an example to quickly understand the mechanism of ERC-404:

The total amount of Pandoras Box ERC-20 Token $PANDORA is 10,000. For every $PANDORA purchased, you will automatically get 1 Pandoras Box NFT. Of course, if the sale results in less than 1 $PANDORA in hand (for example, I sold 0.5 $PANDORA), the box held will be automatically burned.

Therefore, the maximum supply limit of ERC-20 coins is theoretically also the maximum supply limit of ERC-721 small pictures, but this is only theoretical because it is almost impossible to reach exactly 10,000 holders of 1 $PANDORA each. Distribution (correspondingly, there is another theoretical limit situation, that is, the number of $PANDORA owned by everyone is less than 1, then there will be no NFT). Now, the actual inventory of Pandoras Box is more than 4,000.

This actually completely subverts the issuance and even operating logic of an NFT series. First of all, deploying only one LP is actually equivalent to opening up the Mint link. Secondly, how many images from a 10K series will be minted, and how many will remain? Regarding the previous question, the meme Token + small picture method is becoming more and more common now, and there are many possibilities. As for the latter question, ERC-404 actually partially decentralizes curation rights to users - we optimistically expect this arbitrage scenario - more popular or rarer images will be priced higher than ERC on OpenSea/Blur The premium of -20 Token keeps changing hands in the form of small pictures, and the small picture sellers who get the premium continue to buy Tokens and try their luck in opening pictures.

Users can also transfer their ERC-20 Token between alt accounts for Reroll. You might say that previous NFTfi applications also supported these, why does ERC-404 make me so excited?

The original fragmentation direction is completely opposite and destroys NFT. It is very logically unreasonable - for example, it is very simple. Let me say this, pick one of the 10,000 paintings and lock it in a safe, and then everyone collects the safe. Key fragments, this is the fragmentation logic of the past. But whats the point? Holding the key to the safe (buying Token) is equivalent to a security guard whose salary is not guaranteed (I will also fall when the series drops), without any rights and interests. The painting itself feels like it has been torn into pieces and is downgraded, not to mention NFT. The liquidity itself is low, and only one of the series is opened to open a pool. How much water can be in this pool?

ERC-404 directly creates a symbiotic relationship between graphics and currency, which can not only be traded on CEX, but also subvert existing NFTfi products. As long as oracles are introduced, native NFT leverage based on ERC-404 will be easy (directly open long and short on ERC-20 Token), and direct borrowing will also be easy, and it is no longer a matter of saving small pictures to a specified address. , can be operated directly based on ERC-20 Token.

From the perspective of NFT, we can expect interesting new ways to play in games and art. For example, if I write an article I am reborn as the boss in the currency circle, 100 ERC-20 Tokens are 100 chapters. Is there really a way to open all chapters? Or will this be a novel that will never be finished because it is too expensive to read?

Conclusion

Towards@maybectrlfreakand@0x acmeCongratulations, this is such an interesting and genius idea.

In addition, there are already projects ready to be launched through ERC-404, you can pay attention to@iamcfwand@anon_ethereum。