While working on a related post I began considering the implications for NFT’s when they’re combined with cross-chain bridges and fully integrated into other networks, and although this has been previously achieved it looks like not much was accomplished in the follow-up. For the most part, any efforts have been in order to facilitate trading or as a useless gimmick, rather than provide a form of utility or improve a collection/platform in any way.

As they (rightly) say, the future for DeFi is multi-chain, so why do we not also have this same passion for an interoperable NFT paradise, beyond of course, the repeated claims of ''mEtaVerSe sOon'', which never materialize. And when they do… it’s best to avoid.

Case in point

This post will focus on some unorganized thoughts I’ve had regarding the future of NFTs and DeFi, specifically when combined together, and will be using the Nexus cross-chain bridge as a point of reference.

• Current poor sentiment aside, there is a lot of growth ahead for both NFT’s and DeFi, innovation is just beginning.

• Similar to other cryptoassets, NFT’s are restricted by low interoperability. Forcing value and users to remain siloed on one network.

• No real barriers hindering progression, lack of utility on the target chain seems to be the most prominent reason. Providing easy and efficient bridging to projects could encourage out-of-the-box thinking when it comes to planning utility.

• Clear benefits to projects and users including, wider reach, greater use-case for the collection, different ways of building value and generating yield etc…

As a key starting point, and before diving into bridging, it’s important to note that by their nature NFT’s are interoperable, meaning they can be transferred from one chain to another without issue, and have thus far lacked only the bridge, some form of initiative, or seemingly, the utility on a target chain.

Essentially functioning in a familiar way to many other crypto cross-chain solutions, Nexus enables users the ability to deposit assets on chain A, in this case Solana, to be retrieved on chain B, in this case, Ethereum. (As the ecosystem continues to expand through other networks, these will also be incorporated into Nexus)

This process is achieved by locking the NFT/s within the smart contracts, allowing for a wrapped duplicate to be minted on the target chain. With this done, the owner of the NFT is free to use it in whichever way he is able, earning yield from different sources, and engaging in various web3 activities. Or, that’s the dream at least. But really, we don’t see a whole lot of it.

Perhaps, again, a case of lacking utility, though of course there is always the possibility that these projects just lack the means, needing a simple, yet highly efficient way to transfer these assets, before even considering the end utility. Therefore… Is it a case of build it and they will come?

To again look towards Nexus, which aims to connect the Solana-based Geobots with yield on Helix, located on Ethereum, it’s easy to see the planned utility and need for the bridge, and I can’t help but wonder when other teams will begin to utilize this feature, especially considering the benefits, which we’ll look at later.

With the basic functionality of the bridging experience out of the way, let’s take a moment to consider some of the unequivocal facts regarding my end-thought process. Throughout this I will be considering both the NFT and DeFi markets as whole and separate entities, essentially to gauge the need/demand for this type of interoperable NFT environment.

Firstly, let’s take a look at the easier of the two, DeFi, which I hope we can agree, has a long-term future, though of course, only after rectifying many of the problems afflicting the sector. I will make this brief as I’m sure we don’t need yet another explainer on the current state of DeFi.

The current TVL of DeFi on all chains is estimated at around $106.3Billion4, down from its ATH of just under $254Billion, but also, up from its ATL of basically nothing, so yeah, there is that…

And again, when comparing the activity on chain (by using current active ETH wallets as the deciding factor, which I agree is a flawed metric as a constantly rising number) we are left with a similarly bleak, and declining picture.

As stated, I won’t dive into the factors behind the current state of DeFi, or crypto as a whole, and it will suffice for my reasoning to say that I believe the activity and capital will eventually return to DeFi, post bear, and when the FED allows.

In the meantime however, decentralized finance goes from strength to strength, albeit in a lowkey manner, with adoption gradually occurring, and innovation sneaking its way in, leading me to my eventual point that this is unquestionably an industry to continue building, innovating, and creating in.

Now, let’s take a comparably quick look at the NFT markets, with us using Solana as our example. I selected Solana for no reason other than the thriving NFT vibe that can be found on-chain, and of course the ease for me to use Nexus as a point of reference. Also, Solana has a reputation for being very NFT-focused, though it could be said that this is slowly changing.

By glancing at any one of the analytics platforms on Solana, we can explore the amount of value now developing in the NFT space on this chain, with DeGods ranking as the top collection on the network at a floor of 385 SOL, or around $15,300.

Although still low in dollar amount, especially compared to the standards of Ethereum, the space is still developing and value is starting to quickly accrue behind established projects.

As more influencers, celebrities, and web2 companies migrate into the space, we can, and I expect we will, see a continued increase in floor price and adoption of these Solana projects that continue to provide value. Also, I think it’s fair to say that the NFT space as a whole has a lot of growing space, with us barely having scratched the surface to the possible utility that they could, eventually, provide.

My point yet again is that this is a space that is worth developing, and cultivating, and while we’ve already seen NFT’s used in DeFi, perhaps it’s time to take it further. Again, and not to continually preach on the same note, but this is maybe an issue that begins with increasing the interoperability of these assets, by more readily providing the cross-chain capability.

To be honest, not a lot.

The bridging capability is there and ready to efficiently use, so perhaps the issue to date really has been the lack of proposed utility on target chains, which is definitely the conclusion that I’m coming to anyway. Other considerations could involve the possible limitations to previous bridges, with many having, what I would consider being, problems with the length of time taken to transfer, and others restricting the amount, or type of NFT, essentially negating its usefulness.

To once more return our gaze to the Nexus bridge, offering the capacity to quickly transfer up to 14 NFT’s per transaction is in itself a step forward, forcing even mega-whales to require only a few trips to transfer and store their full collection, whatever it is. In this case I could consider the Geobot collection, in which the largest holder has a total of 250 NFT’s, necessitating 18 trips with the bridge, which, while not as handy as 1, is ultimately a lot better than 250 solo.

This one simple step of batching NFT’s together has essentially made for a much better user experience, and with additional work and committed teams, it’s hard to imagine any future barriers resisting further determined innovation, especially with the benefits more well-known.

While interoperability looks at the ease and manner in which the network and protocols can communicate, and therefore transfer value and data, composability is a principle that focuses instead on the relationships between two components. This key feature of DeFi is one of its biggest strengths, allowing for the creation of more complex financial strategies through unlimited combinations.

By encouraging the ease of use of NFT bridges, teams and projects from both the NFT, and DeFi sectors could be inspired to innovate new and unique products, to cooperate and work together in symbiosis to leverage the already-present composability of the space, with the end result being more options on-chain, and a greater experience for NFT holders.

Pointing, once more to the Geobot collection, Nexus connects both the Solana and Ethereum networks to allow holders access to the staking pool on the Helix AMM, thereby earning passive rewards. When the ecosystem rolls out its second planned protocol these NFT’s will find utility there too, essentially opening up an ever-expanding environment, and new ways to generate yield. Although the technical aspects of integrating many collections and platforms together is beyond me, I’m assuming, and yes hoping, that it is possible.

Allowing for these personalized and yield-harvesting JPEG’s to explore the cross-chain environment with their holders, whilst teams build new composable products to utilize them with sounds like perfect web3 harmony to me.

In a similar way to other cryptoassets, the value and utility of NFT collections is currently siloed away on the various networks, with users limited in use and options, and teams forced to go with the 'same old sh*t**'** when designing their projects.

By providing interoperability, however, they can begin expanding utility beyond the chosen network of their deployment, not only ensuring a rise in dollar value, but in their true worth too as a usable, and useful asset.

The main benefit I see however relates to the potential innovation within DeFi platforms that this could, and should, provide a catalyst for, with each vying for long-term collaborations with promising projects/communities, and innovating new ways to utilize NFT’s within DeFi. With the first steps taken, we could quickly see an entirely new form of NFT-based liquidity mining, in some form or another.

It’s all well and good having a bridge and bridgeable collection, but if there’s only a wasteland waiting for them on the target chain, is there really any point? For this hastily dreamed future to have any serious chance of developing there would need to be a strong desire from teams and projects to continue innovating from both sides of the divide, eventually working together in a closer way and collaborating to build the next flywheel effect, or web3 breakthrough. The potential for a composable future is limitless really, offering many ways to combine these two areas, it just necessitates taking the first dedicated steps.

Whatever the case, I think there are plenty of teams up to the challenge, and with both DeFi and NFT’s providing such unique features, I imagine we’ll see plenty of cross-contamination in their future.

So the point of all this? Really, I’m not sure. My work over the last few days has had me debating the possibilities, and i just think it would be interesting to expand on the connection between DeFi and NFT’s.

One thing I do know, however, we really are very early in this industry, and actions, even small ones, have a great impact in a market as immature as this. I’m looking forward to seeing how we can empower future NFT collections with our actions over the next few months and years.

While working on a related post I began considering the implications for NFT’s when they’re combined with cross-chain bridges and fully integrated into other networks, and although this has been previously achieved it looks like not much was accomplished in the follow-up. For the most part, any efforts have been in order to facilitate trading or as a useless gimmick, rather than provide a form of utility or improve a collection/platform in any way.

As they (rightly) say, the future for DeFi is multi-chain, so why do we not also have this same passion for an interoperable NFT paradise, beyond of course, the repeated claims of ''mEtaVerSe sOon'', which never materialize. And when they do… it’s best to avoid.

Case in point

This post will focus on some unorganized thoughts I’ve had regarding the future of NFTs and DeFi, specifically when combined together, and will be using the Nexus cross-chain bridge as a point of reference.

• Current poor sentiment aside, there is a lot of growth ahead for both NFT’s and DeFi, innovation is just beginning.

• Similar to other cryptoassets, NFT’s are restricted by low interoperability. Forcing value and users to remain siloed on one network.

• No real barriers hindering progression, lack of utility on the target chain seems to be the most prominent reason. Providing easy and efficient bridging to projects could encourage out-of-the-box thinking when it comes to planning utility.

• Clear benefits to projects and users including, wider reach, greater use-case for the collection, different ways of building value and generating yield etc…

As a key starting point, and before diving into bridging, it’s important to note that by their nature NFT’s are interoperable, meaning they can be transferred from one chain to another without issue, and have thus far lacked only the bridge, some form of initiative, or seemingly, the utility on a target chain.

Essentially functioning in a familiar way to many other crypto cross-chain solutions, Nexus enables users the ability to deposit assets on chain A, in this case Solana, to be retrieved on chain B, in this case, Ethereum. (As the ecosystem continues to expand through other networks, these will also be incorporated into Nexus)

This process is achieved by locking the NFT/s within the smart contracts, allowing for a wrapped duplicate to be minted on the target chain. With this done, the owner of the NFT is free to use it in whichever way he is able, earning yield from different sources, and engaging in various web3 activities. Or, that’s the dream at least. But really, we don’t see a whole lot of it.

Perhaps, again, a case of lacking utility, though of course there is always the possibility that these projects just lack the means, needing a simple, yet highly efficient way to transfer these assets, before even considering the end utility. Therefore… Is it a case of build it and they will come?

To again look towards Nexus, which aims to connect the Solana-based Geobots with yield on Helix, located on Ethereum, it’s easy to see the planned utility and need for the bridge, and I can’t help but wonder when other teams will begin to utilize this feature, especially considering the benefits, which we’ll look at later.

With the basic functionality of the bridging experience out of the way, let’s take a moment to consider some of the unequivocal facts regarding my end-thought process. Throughout this I will be considering both the NFT and DeFi markets as whole and separate entities, essentially to gauge the need/demand for this type of interoperable NFT environment.

Firstly, let’s take a look at the easier of the two, DeFi, which I hope we can agree, has a long-term future, though of course, only after rectifying many of the problems afflicting the sector. I will make this brief as I’m sure we don’t need yet another explainer on the current state of DeFi.

The current TVL of DeFi on all chains is estimated at around $106.3Billion4, down from its ATH of just under $254Billion, but also, up from its ATL of basically nothing, so yeah, there is that…

And again, when comparing the activity on chain (by using current active ETH wallets as the deciding factor, which I agree is a flawed metric as a constantly rising number) we are left with a similarly bleak, and declining picture.

As stated, I won’t dive into the factors behind the current state of DeFi, or crypto as a whole, and it will suffice for my reasoning to say that I believe the activity and capital will eventually return to DeFi, post bear, and when the FED allows.

In the meantime however, decentralized finance goes from strength to strength, albeit in a lowkey manner, with adoption gradually occurring, and innovation sneaking its way in, leading me to my eventual point that this is unquestionably an industry to continue building, innovating, and creating in.

Now, let’s take a comparably quick look at the NFT markets, with us using Solana as our example. I selected Solana for no reason other than the thriving NFT vibe that can be found on-chain, and of course the ease for me to use Nexus as a point of reference. Also, Solana has a reputation for being very NFT-focused, though it could be said that this is slowly changing.

By glancing at any one of the analytics platforms on Solana, we can explore the amount of value now developing in the NFT space on this chain, with DeGods ranking as the top collection on the network at a floor of 385 SOL, or around $15,300.

Although still low in dollar amount, especially compared to the standards of Ethereum, the space is still developing and value is starting to quickly accrue behind established projects.

As more influencers, celebrities, and web2 companies migrate into the space, we can, and I expect we will, see a continued increase in floor price and adoption of these Solana projects that continue to provide value. Also, I think it’s fair to say that the NFT space as a whole has a lot of growing space, with us barely having scratched the surface to the possible utility that they could, eventually, provide.

My point yet again is that this is a space that is worth developing, and cultivating, and while we’ve already seen NFT’s used in DeFi, perhaps it’s time to take it further. Again, and not to continually preach on the same note, but this is maybe an issue that begins with increasing the interoperability of these assets, by more readily providing the cross-chain capability.

To be honest, not a lot.

The bridging capability is there and ready to efficiently use, so perhaps the issue to date really has been the lack of proposed utility on target chains, which is definitely the conclusion that I’m coming to anyway. Other considerations could involve the possible limitations to previous bridges, with many having, what I would consider being, problems with the length of time taken to transfer, and others restricting the amount, or type of NFT, essentially negating its usefulness.

To once more return our gaze to the Nexus bridge, offering the capacity to quickly transfer up to 14 NFT’s per transaction is in itself a step forward, forcing even mega-whales to require only a few trips to transfer and store their full collection, whatever it is. In this case I could consider the Geobot collection, in which the largest holder has a total of 250 NFT’s, necessitating 18 trips with the bridge, which, while not as handy as 1, is ultimately a lot better than 250 solo.

This one simple step of batching NFT’s together has essentially made for a much better user experience, and with additional work and committed teams, it’s hard to imagine any future barriers resisting further determined innovation, especially with the benefits more well-known.

While interoperability looks at the ease and manner in which the network and protocols can communicate, and therefore transfer value and data, composability is a principle that focuses instead on the relationships between two components. This key feature of DeFi is one of its biggest strengths, allowing for the creation of more complex financial strategies through unlimited combinations.

By encouraging the ease of use of NFT bridges, teams and projects from both the NFT, and DeFi sectors could be inspired to innovate new and unique products, to cooperate and work together in symbiosis to leverage the already-present composability of the space, with the end result being more options on-chain, and a greater experience for NFT holders.

Pointing, once more to the Geobot collection, Nexus connects both the Solana and Ethereum networks to allow holders access to the staking pool on the Helix AMM, thereby earning passive rewards. When the ecosystem rolls out its second planned protocol these NFT’s will find utility there too, essentially opening up an ever-expanding environment, and new ways to generate yield. Although the technical aspects of integrating many collections and platforms together is beyond me, I’m assuming, and yes hoping, that it is possible.

Allowing for these personalized and yield-harvesting JPEG’s to explore the cross-chain environment with their holders, whilst teams build new composable products to utilize them with sounds like perfect web3 harmony to me.

In a similar way to other cryptoassets, the value and utility of NFT collections is currently siloed away on the various networks, with users limited in use and options, and teams forced to go with the 'same old sh*t**'** when designing their projects.

By providing interoperability, however, they can begin expanding utility beyond the chosen network of their deployment, not only ensuring a rise in dollar value, but in their true worth too as a usable, and useful asset.

The main benefit I see however relates to the potential innovation within DeFi platforms that this could, and should, provide a catalyst for, with each vying for long-term collaborations with promising projects/communities, and innovating new ways to utilize NFT’s within DeFi. With the first steps taken, we could quickly see an entirely new form of NFT-based liquidity mining, in some form or another.

It’s all well and good having a bridge and bridgeable collection, but if there’s only a wasteland waiting for them on the target chain, is there really any point? For this hastily dreamed future to have any serious chance of developing there would need to be a strong desire from teams and projects to continue innovating from both sides of the divide, eventually working together in a closer way and collaborating to build the next flywheel effect, or web3 breakthrough. The potential for a composable future is limitless really, offering many ways to combine these two areas, it just necessitates taking the first dedicated steps.

Whatever the case, I think there are plenty of teams up to the challenge, and with both DeFi and NFT’s providing such unique features, I imagine we’ll see plenty of cross-contamination in their future.

So the point of all this? Really, I’m not sure. My work over the last few days has had me debating the possibilities, and i just think it would be interesting to expand on the connection between DeFi and NFT’s.

One thing I do know, however, we really are very early in this industry, and actions, even small ones, have a great impact in a market as immature as this. I’m looking forward to seeing how we can empower future NFT collections with our actions over the next few months and years.