Building web3 #AA @alchemyplatform, investing and writing @l2iterative, ex protocol builder @harmonyprotocol @klaytn_official, ex @meta, cs
Building web3 #AA @alchemyplatform, investing and writing @l2iterative, ex protocol builder @harmonyprotocol @klaytn_official, ex @meta, cs
Share Dialog
Share Dialog
Subscribe to denniswon
Subscribe to denniswon
TLDR: Not just NFT market pricing protocol, but also NFT-Defi utility protocol.
Solves the problem of limit-ness of the desirability to hold NFTs and there are limited monetization opportunities beyond holding NFTs.
Pilgrim protocol brings two main core values:
Innate value: automatic market pricing of NFTs on EVM chains through their vAMM (virtual AMM) constant product market maker model
Simply, the protocol is similar to fractional.art protocol in that the fractional token ownership is the base user experience.
NFT-backed shares derivatives marketplace
Derived value: yield farming (PIL token) utility through NFT fractionalized derivatives trading involved during the market making, while semi-maintaining the original utility of the NFT by minting metaNFT for the listed/locked NFT tokens.
Games can utilize the metaNFT via their protocol/APIs to integrate the metaNFT for compatibility
NFT agnostic: protocol is not for any specific types of NFTs, but applicable for any NFT projects other there. The target market includes not just Ethereum, but in the future, all EVM chains.
Capital Efficient: vAMM model based protocol is not only interesting, but also gives clear incentives for users - ex. no liquidity requirement to participate in, just your NFTs.
Also, their metaNFT model gives a potential solution to NFTs’ being locked to the protocol for market participation.
Very strong founders & team
Ex. Terra, Sendbird + long time active members within the Korean crypto community including the 2nd ever DefCon Korean Finalist
Strong level of crypto-nativeness in vision, and their technical/security expertise.
Layer 2
For their token economics to work well, the gas fee is especially a problem that needs solution (trade-off made for security over gas fee)
Because their yield farming protocol currently interacts mostly with Uniswap V3, they will be heavily focusing on launching Pilgrim Protocol on Optimism and Polygon, especially the latter to begin with.
Token distribution schedule: here
First utility case for Uniswap pool NFTs with yield farming opportunity
In 2021, Uniswap handled roughly $640 billion in transactions with revenue (source) with revenue roughly at $1 billion USD (source), this gives the DEX roughly a margin of 0.15%.
Estimating the revenue opportunity for Pilgrim given the market size of $25 billion in 2021 (chart below), we estimate that the opportunity based on the 2021 figure is $37.5 million in terms of annual revenue.
Given the rapid growth seen in 2021, we estimate the revenue opportunity to be much greater in the coming years as some estimate the growth to be roughly 40% CAGR. (Source)
Fractional Art: fractional ownership of NFTs
Otis: fractionalize bluechip NFTs like the Banksy painting
Unic.ly: combine, fractionalize, and trade NFTs
Taem Park, CEO (UCSD Cognitive Science, Sendbird Tech Lead)
Tei Im, CTO (KAIST Computer Science, Sendbird Engineer worked with Taem there)
Changwan Park, Research (KAIST Computer Science, Sendbird Engineer, Defcon finalist, Security master)
Being able to market the company in the right way
Selecting the right partnership
Other NFT focused protocols like mentioned above, but also potentially large P2P marketplaces like OpenSea and LooksRare
Risk that other developers may fork the codebase / mechanism and build another exchange that can siphon away Pilgrim users
As with any projects pursuing the crypto native approach in development, there may be the risk that there may be blindspots in the design of tokenomics.
Market cycle: should take into account the asset risk that may present after the initial acquisition of digital assets and this may cause lower rate of adoption and/or bring a lull to the market.
TLDR: Not just NFT market pricing protocol, but also NFT-Defi utility protocol.
Solves the problem of limit-ness of the desirability to hold NFTs and there are limited monetization opportunities beyond holding NFTs.
Pilgrim protocol brings two main core values:
Innate value: automatic market pricing of NFTs on EVM chains through their vAMM (virtual AMM) constant product market maker model
Simply, the protocol is similar to fractional.art protocol in that the fractional token ownership is the base user experience.
NFT-backed shares derivatives marketplace
Derived value: yield farming (PIL token) utility through NFT fractionalized derivatives trading involved during the market making, while semi-maintaining the original utility of the NFT by minting metaNFT for the listed/locked NFT tokens.
Games can utilize the metaNFT via their protocol/APIs to integrate the metaNFT for compatibility
NFT agnostic: protocol is not for any specific types of NFTs, but applicable for any NFT projects other there. The target market includes not just Ethereum, but in the future, all EVM chains.
Capital Efficient: vAMM model based protocol is not only interesting, but also gives clear incentives for users - ex. no liquidity requirement to participate in, just your NFTs.
Also, their metaNFT model gives a potential solution to NFTs’ being locked to the protocol for market participation.
Very strong founders & team
Ex. Terra, Sendbird + long time active members within the Korean crypto community including the 2nd ever DefCon Korean Finalist
Strong level of crypto-nativeness in vision, and their technical/security expertise.
Layer 2
For their token economics to work well, the gas fee is especially a problem that needs solution (trade-off made for security over gas fee)
Because their yield farming protocol currently interacts mostly with Uniswap V3, they will be heavily focusing on launching Pilgrim Protocol on Optimism and Polygon, especially the latter to begin with.
Token distribution schedule: here
First utility case for Uniswap pool NFTs with yield farming opportunity
In 2021, Uniswap handled roughly $640 billion in transactions with revenue (source) with revenue roughly at $1 billion USD (source), this gives the DEX roughly a margin of 0.15%.
Estimating the revenue opportunity for Pilgrim given the market size of $25 billion in 2021 (chart below), we estimate that the opportunity based on the 2021 figure is $37.5 million in terms of annual revenue.
Given the rapid growth seen in 2021, we estimate the revenue opportunity to be much greater in the coming years as some estimate the growth to be roughly 40% CAGR. (Source)
Fractional Art: fractional ownership of NFTs
Otis: fractionalize bluechip NFTs like the Banksy painting
Unic.ly: combine, fractionalize, and trade NFTs
Taem Park, CEO (UCSD Cognitive Science, Sendbird Tech Lead)
Tei Im, CTO (KAIST Computer Science, Sendbird Engineer worked with Taem there)
Changwan Park, Research (KAIST Computer Science, Sendbird Engineer, Defcon finalist, Security master)
Being able to market the company in the right way
Selecting the right partnership
Other NFT focused protocols like mentioned above, but also potentially large P2P marketplaces like OpenSea and LooksRare
Risk that other developers may fork the codebase / mechanism and build another exchange that can siphon away Pilgrim users
As with any projects pursuing the crypto native approach in development, there may be the risk that there may be blindspots in the design of tokenomics.
Market cycle: should take into account the asset risk that may present after the initial acquisition of digital assets and this may cause lower rate of adoption and/or bring a lull to the market.
<100 subscribers
<100 subscribers
No activity yet