# Metafi By [DAO's DAO](https://paragraph.com/@dao-s-dao) · 2022-06-01 --- 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 1. NFT-Derivatives \*Prediction markets on NFT floor prices \*Swapping Protocols \*Shorting on NFT \*Index style containers 2. 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 3. 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. --- *Originally published on [DAO's DAO](https://paragraph.com/@dao-s-dao/metafi)*