Meta-Fi
Where DeFi Meets The Metaverse and integrates NFT!!
One small step for NFTs. One giant leap for the Metaverse.
Meta-Fi, or Metaverse Finance, is a term for protocols, products, and services enabling the complex financial interplay between non-fungible and fungible tokens (and their derivatives).
And just so we are clear NFTs or Non-Fungible Tokens are a file format to transfer information or value on a blockchain like, but not limited to Ethereum. — Most likely your common association with NFTs is in images like Jpegs which you would have seen with digital Avatars like BAYC & Crypto Punks.
What makes it unique is that by being on a blockchain, this data lives & is tokenized on-chain and is Non-Fungible. When something is Fungible it means something that can be identical and interchangeable. Great for digital transparent ownership.
Anyway, back to Meta-Fi — Its prominence has grown due to the exponential growth in demand for Non-Fungible-Tokens (NFTs) by new and incumbent crypto users. Factions of millennials & GenZ alike who have no prior understanding of finance or financial products are gaining an active interest in this sector they had no involvement in before.
What's driving Meta-Fi? *Gamification of Finance *Availability of Financial tooling *Growth in DAOs & their treasuries *Growth in NFTsValuation & Appraisal *Fractionalization *Lending *NFT Liquidity Management
Main areas for Meta-Fi in NFT
NFT-Derivatives *Prediction markets on NFT floor prices *Swapping Protocols *Shorting on NFT *Index style containers
Fractionalisation of NFTs *mint tokenized fractional ownership of NFTs *customizable bonding curves *financial infrastructure for cross-chain NFTs *Transform NFT collection into a tradable asset class with liquidity
NFTs to integrate with Defi: Collateralaistion *NFTs as collateral for loans *Yield-Bearing NFTs for staking *peer-to-peer renting of ERC-721 and ERC-1155 (NFTs) on Ethereum.
The Future is Meta-Fi
A market where NFTs integrate & complement Defi elements seems natural as the market evolves. Meta-Fi appears to be a natural next step when considering the use-cases of Lending, Collateralsating, and Fractionalising your NFT to harness their full potential long term.