Two areas of the cryptocurrency industry have experienced rapid development over the past few years. A DeFi that broke out in 2020

Summer, the other is the NFT craze triggered in 2021. When DeFi gradually faded from the heat of the year and the development of the NFT track encountered a bottleneck, people began to discuss whether the combination of the two could burst out new opportunities, so NFTFi appeared.

Regarding the recent changes in the NFT environment, whether it is the sharp decline of blue-chip NFTs or the rise of BTC NFTs, as well as the recent discussion of ERC 6551, it shows that the next round of NFT track will have major changes. At present, there are three main theories about the development of the NFT track in the market. One is the end of the blue-chip narrative and the fall of the NFT track; the second is the innovation and change of the NFT track and the start of a new narrative; There is much to do after that. Although the current NFT market is very cold, the NFT track will never recover. In the future, more innovation and stronger financial attributes will be needed. However, the market chain reaction brought about by the recent Azuki incident will bring more excitement to the NFT track. Here comes a bigger opportunity.

LittleMami launched the How NFT lending tools are strong in the bear market Twitter Space on August 10, and invited NFTGO, BendDAO, ParaSpace, xBank, LENA, several projects that have outstanding performance in the NFT industry and NFT lending to jointly carry out the Share this topic.

LittleMami: LittleMami is a Web3 brand dedicated to creating a playable, profitable, and sustainable Metaverse through the cultural consensus and financial interaction of NFT. The core of LittleMami is to create a metaverse basic financial application facility through Mami Protocol, provide financial derivatives services for NFT, and increase liquidity through pledge, loan and other functions.

NFTGO: NFTGo aims to become the worlds leading NFT data intelligence provider, driven by big data, artificial intelligence and blockchain technology, to benefit all those involved in NFT transactions and usage.

BendDAO: BendDAO is a peer-to-pool based NFT liquidity protocol. Borrowers can use NFTs as collateral to borrow ETH through the lending pool. Depositors can provide ETH liquidity to the lending pool to earn interest.

ParaSpace: ParaSpace is a cross-margin NFT lending protocol that allows users to borrow and borrow in NFT and ERC-20. ParaSpace allows users to take advantage of unused NFTs to further invest and earn income.

xBank: xBank is an open money market with stability, efficiency and solvency. xBank provides currency leverage to new Web3 users by matching currency demand and supply through services such as buy now, pay later (BNPL), collateral sale, and upgrade transactions.

LENA: LENA is the latest Web3 liquidity provider, offering ETH liquidity pools for staking rewards, lending, lending, and more. Empowering users with autonomy and transparency is at the core of our design philosophy, and our services cover all Web3 assets.

LittleMami: First of all, NFTGO was invited to analyze the overall performance of the current NFT market for us from the perspective of the data side, and provide data support for the development of other follow-up issues.

NFTGO：

• With a PNL of 30 D in the NFT market, 90% of people are losing money. Still very early, BAYCs all time trader is 17k, MAYC is 35k.

• The current market performance is basically at the level in July/August 2021. NFT market capitalization and trading volume were the two highest points in January 22 and April 22. The current data on trading volume is at the level of July/August 21, which is basically the beginning of the last round of bull market. In the past 30 days, the number of traders for NFT on ETH was less than 120,000, and the average daily trader was around 10,000. The current data is also close to the level of July/August 21.

• It is worth noting that, in fact, the transaction volume in July has dropped a lot (halved) compared to June, which may be mainly affected by azuki elemental. The market share of PFP market value continued to rise during the 21 years, reaching 56% in January 22, and then stabilized in the range of 55% -60%

• In the past 3 months (as of early August), the NFT trading volume is still dominated by blue chips, BAYC + MAYC + BAKC = 34%, Azuki + Azuki Elemental +beanz = 19% (but the proportion of smashing is high), degods, captainz, milady Each can account for about 3%. Moreover, there have been no phenomenal new projects in the last three months and the last month. The total proportion of all projects after the top ten is only 36%, and the head effect is obvious.

• In the past three months, excluding washtrade, the trading volume of blur has been 2.8 times that of opensea + opensea pro; but the number of traders of opensea is 3-4 times that of blur.

LittleMami: Thank you very much for the comprehensive data analysis provided by NFTGO. Generally speaking, although the NFT market has experienced a significant decline, this does not mean that the NFT market has lost its growth potential. There are still many NFT projects in the market. NFT is still one of the markets with high potential growth multiples. In addition, I just mentioned that one of the reasons why the market was very bearish in July was because there was no dark horse. So how is the so-called dark horse defined?

NFTGO: One of the reasons why the overall market was bearish in July was that there were no dark horses, and the other was the impact of the Azuki incident. From the data point of view, the trading volume was cut in half and liquidity was almost lost. This situation is actually rare .

The main feature of a dark horse lies in its persistence. If it is a dark horse that lasts for a long time, like the previous Milady, it must have a very clear characteristic. For example, someone once concluded that BAYC is a frigid style. , from the aesthetic side, it has some more characteristic things, or it has a very different narrative, just like Milady, in fact, they all hit one in their respective tracks, and no one really hit it before. A narrative is that checks can achieve a better combination with this IP and personal influence in the art track, and then can continue to do this.

As a Trader community, Milady will have its own independent narrative, so if it really wants to come up with a group of horses like this, it will definitely be able to come out with its own independent narrative. That is, the narrative must not be very simple, such as imitation, or the narrative of the metaverse, or the narrative of IP. This kind of narrative that has been fired by everyone is difficult to attract, or it is like some people who just do things. intervened.

But if it is a group of very short-lived dark horses, it is actually the logic of MEME. It is nothing more than to see if anyone is willing to pull the market and hype. Then the life cycle of this kind of dark horse may only be about 3 weeks to a month. Like Milady, checks may be able to stabilize, yes, so I think this also depends on this characteristic.

LittleMami: From some market data analysis given by NFTGO, it can be seen that the NFT market is shrinking and blue chips are almost falling across the board. How does an NFT lending platform deal with this challenge?

Xbank：

xBank is also very concerned about NFT market data, and has chosen NFT lending as its core direction, and through BLPL (buy now, pay later) and expects to respond to user needs and market opportunities in different situations through new NFT issuance methods.

The team pays close attention to the NFT market data, especially the changes in the total market capitalization of the NFT market. One of the obvious changes is that the total market value of the NFT market has dropped from more than 20 billion US dollars at the previous peak to only about 5.6 billion US dollars now, which also shows that the current NFT market is still relatively small. At the same time, we also found that based on an asset in the real world, its derivatives may be 30-50 times its original asset, so we chose the track of NFT lending.

The core product of xBank is BNPL (Buy Now Pay Later), which reflects the teams strategy in the bear market. Introduce incremental users by lowering the entry barrier for new users. For example, users can choose the buy-now-pay-later model to purchase high-priced NFTs and use leverage to pay in installments. We also noticed that for popular gamefi projects like Matr 1 x, some users require financial support. xBank provides a new way for users to repay the interest and balance of NFT installments through gold mining profits.

Now, we plan to launch the xBank Legend program as a way to explore new NFT distribution methods, help artists and junior communities get started, and attract new users. The plan provides project parties with a buy-now-pay-later method without the need to provide ETH liquidity in order to acquire new users.

BendDAO：

I started buying NFT at the end of 2020. For nearly three years, I have seen that the confidence in a market is actually very insufficient, and the continuous downturn is painful. The market’s continued decline and oversupply have caused the NFT market to shrink.

More than that, coupled with the impact of previous events such as FTX, LUNA, and Multichain, BendDAO has actually made it clear what we need to do at this stage. One is the security of user assets. This issue can be discussed at the highest level , so BendDAO actually focuses on security. It does not pursue speed, but only launches products under the premise of ensuring safety. Instead of focusing on the present, we pay more attention to the future. If the NFT market improves and more people join in, it will be valuable for us to continue to build this construction now, and it will only bear fruit on that day.

Another thing BendDAO is doing is continuing to build the community. Regularly hold events on Twitter and sponsor physical events to strengthen communication with the community. The bear market is a good time to establish a strong connection with the community. The community persists in the downturn and will become the leading force in the future bull market. Building relationships and growing together with the community is an important task for BendDAO at present.

ParaSpace：

ParaSpace’s long-term goal is to bring the future of finance to one billion users. We are the first lending protocol to adopt Cross Margin in the NFTFi field. We are not limited to NFT lending. We are also working hard to expand the field of cross-chain lending. We have also added support for chains such as Arbitrum, Polygon and Zksync.

From a data perspective, the market value of the NFTFi track is approximately US$200 million, covering 26 NFTFi projects. The leading projects BendDAO and our Paraspace account for 60% of the entire TVL, and the top six projects account for 95% of the total TVL. Although the market value has shrunk by nearly 70% in the past two months, we still firmly believe that this is just a state in the early stages of the outbreak, and the market has growth potential. Compared with the cryptocurrency market, the incremental potential of the NFT and NFTFi markets may be greater. There will be many new opportunities in the NFT field in the future, such as identity ecosystems, utility NFTs, Financial NFTs, RWA NFTs, and derivatives markets, all of which have great potential.

Currently, Paraspace is preparing for the 2.0 upgrade, and we aim to provide users with better Web3 financial solutions. Whether it is NFT or DeFi, we hope to become a universal lending agreement. In the future, users will even be able to use real-life assets for pledge lending to obtain any assets they need.

Furthermore, we strongly agree with the point made by BendDAO that it is important to stand with the community in a bear market. We have also made many efforts in this regard. We not only hold various Space activities online, but also continue to carry out offline activities. We sponsored the BAYC Japan event in July and had an in-depth chat with the CEO of YugaLabs. Next, Paraspace will launch a series of peripheral activities at the Token 2049 event in Singapore in September and the event in Hong Kong in October and November.

One of the most discussed issues in the NFT market during a bear market is liquidity. I think the BNPL model like the one proposed by xBank is a good solution, especially suitable for bargain hunting in a bear market. When it comes to BNPL, Paraspace is also very flexible and easy to use. In addition, the previous liquidation of Paraspace was actually a sign of bargain hunting.

LNEA：

Against the backdrop of the bear market, we realized the potential of the LENA project. Our goal is to serve different NFT series, including those with lower market capitalization or higher volatility. We have noticed that in the bear market, many NFT projects are facing problems, and we hope that through these events, we can have a better response strategy for future development.

We believe that when markets are soft, its a good time to test a products ability to withstand market pressure. For example, like the Azuki incident, the market can experience huge fluctuations, which tests whether our clearing protocols can cope with market declines. We need to check whether the risk limits and risk controls in the protocol are sufficient, which can be verified in a bear market. When the product is smaller, we have the opportunity to optimize so that we can more confidently serve our customers as the market expands in the future.

We also talked about BNPL, a tool that lowers the barrier to diversity. It allows users to increase their leverage through the ultimate payment service and thereby obtain greater profits in a relatively calm market.

During this period of relative market softness, we believe this is an excellent opportunity to expand. We are deeply understanding our product positioning, looking for opportunities for improvement, and finding more possibilities. LENAs vision is far-sighted, as discussed with protocols such as ERC 6551, and with regard to the possibility of RWA, we consider how these assets can be converted into NFTs to provide services to customers. This is what our team strives for during the bear market, to gain a deeper understanding of the serviceable market.

LittleMami: Many NFT projects lack long-term intrinsic value. Do you want to introduce other NFT projects to the platform in the future? What are the requirements or expectations for them?

xBank：

The topic we discussed was the lack of long-term intrinsic value of NFT projects. We are trying to explore some new methods, such as credit sales, and the project party provides NFT for sale. Of course, these apply to the opening phase or specific phases later on. At the same time, we can review some of the more successful NFT market projects, such as looks rare, which pioneered the concept of list to earn where users can list NFTs on the platform and earn tokens. Subsequently, blur launched the “bid to earn” and “lending to earn” gameplay. These original intentions are to increase the liquidity of NFTs, because the market needs buyers and sellers to facilitate transactions.

What about us? Our token economics have not yet been announced, and we are in a bear market. Despite this, we continue to improve our products and hope to grow together with more NFT project parties. We are currently trying to design a new model, and we will gradually announce the details later. We are constantly experimenting and trying.

Regarding whether to consider introducing other NFT projects, and what are the requirements or expectations for them, I think the projects that can survive in this NFT market are all good projects, whether it is a domestic little ghost or various overseas projects, such as monkey, Zuki, as long as it can survive in this fiercely competitive market, is a project worth looking forward to and cooperating with.

BendDAO：

Although I mentioned before that I dont see an opportunity for market confidence to rise in the short term, I am still very bullish on it in the long term. The reason why I hold this view is because I know a friend who has been playing in the NFT field for several years, about five or six years. He told me that he didn’t know many people before playing NFT, but once he started to get involved, NFT, he met hundreds of people, and these people collaborated on something. He believes that this community consensus is very powerful, and I personally believe it.

In fact, the core of NFT lies in the establishment of consensus. As we all know, building consensus is the most difficult part. Just like the reason why Bitcoin and Ethereum have high value is because of the existence of consensus. For NFTs, it is very rare to have a unanimous consensus, and thousands of people need to support an idea from the beginning. Only when a consensus is established can culture be passed on for a long time. Therefore, I think the future of NFTs is promising.

In addition, price is only one of the objective data. I think there are many other data worth considering. For example, the project teams activity in the community, the frequency of their posts on Twitter, the number of community promotions, the frequency of holding events, and the number of interactions with the community. I think these data are more objective, because the value of NFT is not just the price for a certain period of time, but a long-term rolling community participation enthusiasm, showing its true value, only then can it be called a blue chip.

For example, the initial floor price of Penguin, which we are all familiar with, was less than 1 ETH, but their community has always been very active. Even if the project team changes, the community remains closely united and gradually increases the floor price. Therefore, the floor price is of course an important objective data, but data such as community participation, number of events held, and community cohesion are also worthy of consideration. In the future, other NFT projects can take this data into consideration for pricing.

However, I believe that as long as the community exists and the project parties actively participate, there will always be rewards one day. Regarding the requirements or expectations of other NFT projects, I hope they can cooperate more with BendDAP. We have an open attitude and hope to cooperate with more communities, NFT projects and teams. In a bear market, moving forward is not easy, but we work together to get through it. We will also continue to support more outstanding NFT projects.

ParaSpace：

ParaSpace has some standards when introducing other NFT projects, mainly including the following points. First, we look at whether a project meets blue chip standards. One of the most important criteria is the transaction volume of the project. We will examine the transaction volume and transaction amount of the project in the past period of time. In addition, we will also pay attention to the price stability of the project, that is, whether the price has remained at a certain level over a period of time.

In addition, we will evaluate the degree of community consensus to see whether the project has a strong consensus in the community. The number of project holders will also be considered. These factors will be comprehensively considered to determine whether a project is suitable as a blue-chip project to settle on our platform.

On Paraspace, we already have some projects, like the ones like Yuga, which have a lot of volume but are not very expensive, and we will incorporate them into our platform. In addition, we also very much welcome other potential blue-chip projects to cooperate and communicate with us. We hope to explore together whether there are any opportunities for cooperation for mutual development.

LENA：

I think the issue of project settlement is actually not a black and white issue for a platform like ours. Because we can control risks through a variety of methods, such as maintenance margin, lending interest rate and other risk benchmark adjustments to provide higher prudence.

In addition to different metrics such as transaction volume, market capitalization and project launch time, I think there are other control methods that can be applied. For those projects that are less liquid or have just entered the market but are popular, we can use risk control measures to include them in the list. For some projects that may be just on the edge of risk requirements, we can consider charging listing fees, setting deposits, or other forms of pledges.

Staking fragmented NFT liquidity means we can serve these NFTs by providing deeper liquidity. There are actually many ways to get less liquid NFTs listed. I also hope that through these means, more NFT series projects can better develop their communities by using our platform tools.

LittleMami Co-founder：

Regarding the NFT field, I consider myself a learner and would like to share some of my views on this issue. In my opinion, whether it is the NFT field or the entire blockchain industry, the accumulation of foundation and value is crucial. The key is whether we can maintain a deep connection with our customer base, which is crucial for long-term development.

To the uninitiated, NFTs might just be small images, even expensive but not very pretty ones. But behind high-quality NFTs, there is a unique community and culture. For example, YugaLabs successfully converted 10,000 monkeys into interests worth billions in less than two years, demonstrating the intrinsic value of NFTs. At the same time, this is also a standard token economic system construction model. Behind these high-quality avatars, we represent shared values ​​and culture.

We often hear about corporate culture and belonging, and the same applies to NFTs. High-quality projects provide our teams with a common sense of value. As other speakers have mentioned, this is an emotional need to be accepted, and while it may not be obvious, it is a very important need for consensus. In the long-term intrinsic value, in addition to the uniqueness and scarcity of the NFT itself, what is more important is how the project gives users trust value and consensus.

Currently, even though overall market capitalization has declined during this bear market, the NFT market remains sizable. Similar to the success of the last bull market, we can still have great expectations for this new generation of NFT projects. Past experience can be our guide for the future, and I believe there will be many projects gradually flooding into this market. Therefore, I personally have a positive and optimistic attitude towards this market. I am very optimistic about the LittleMami project. I think LittleMami’s ecological model combined with our community drive can achieve long-term NFT value. Moreover, the NFT industry is still very young, so we look forward to the gradual growth of this industry and become a new benchmark in the industry.