This article explores an example of decentralized liquidity using the Envelop protocol

In the Uniswap v3, when you create a pool, you get the NFT, which, to simplify, serves as the key to your liquidity, unclaimed (unreceived) fees.

Uniswap V3 Positions on Opensea

On the https://app.uniswap.org/#/pools page, create a pool (e.g. MATIC to wETH in the Polygon network).

Transaction id.

For this pool, we received an NFT key with ID 867233.

Now let’s similarly add liquidity to the pool USDt - MATIC (BEP-20) in the Binance Smart Chain. Transaction id.

In total we have

• 4 ERC/BEP-20 tokens and

• 2 ERC-721 NFTs

in which the liquidity is “locked”.

What’s next?

Let’s try to combine NFT (Uniswap v. 3) from the Polygon and NFT (Uniswap v. 3) in the Binance Smart Chain via the Ethereum network. But how is it possible? With the help of crosschain by programmable asset protocols. For example, let’s take DAO Envelop, which specializes in creating NFT 2.0, in the form of wNFT (wrapped NFT).

Go to https://appv1.envelop.is/list on the BSC, find the NFT key by ID and click on “breadcrumbs”. Select the item “Prepare for crossing”

The complete instructions for crossing is at this link, so this article will focus more on general concepts.

So we agreed to build NFT from 2 different chains (BSC & Polygon) through one Ethereum network. So we specify it. Next, we specify a pin code, which serves as an additional protection.

It is important, when you create a key and see the confirmation, first carefully check the pin-code and only then click the checkbox that all read, understood and copied.

Then select the “My crossing” menu in the upper right corner

and go to archv1.envelop.is, where you see the NFTs prepared for crossing:

Next, you need to create an NFT key on the selected network (Ethereum) for each of the selected NFT Uniswap v.3. The key looks like this for today

So,

1. You have made a pool of two Uniswap NFTs (v.3) on 2 chains;

2. Got an NFT access key to this pool;

3. This pool is connected via Envelop crossing to the NFT key in Ethereum;

4. And now anyone who owns the Ethereum PIN and NFT key is the actual owner of the Uniswap v.3 pool on the BSC and Polygon.

So we can safely transfer the NFT key in the Ethereum to another account (in our case, from menaskop.eth to netstalking.eth) and thereby transfer the claim for assets in the BSC and Polygon.

The keys can also be seen on the page of all NFTs: https://appv1.envelop.is/list

But you can go beyond that and combine both keys into 1 wNFT using a Wrapper dApp by Envelop.

Disclaimer: Due to security requirements, adding NFT smart contracts is now whitelisted, but in general it is allowed in the protocol architecture.

Note the top right corner where the recipient of wNFT is listed! You can transfer a wNFT containing 2 keys to another wallet, which will not only own 1 wNFT in the Ethereum, but also claim rights to 5 assets in different networks.

How’s five? Do the math:

• MATIC (native token aka koin) on the Polygon network;

• wETH (ERC-20 token) in the Polygon network;

• MATIC (BEP-20 token) in the BSC network;

• USDt (BEP-20 token) in the BSC network;

• NIFTSY (ERC-20 token) on the Ethereum network.

Where did the latter come from? Decided to put it in the collateral of the newly created wNFT and have every right to do so. By the way, if you want to add any tokens to collateral — it can be done via https://saft.envelop.is/.

And the new owner has a wNFT with collateral in 2 NFT keys and ERC-20 token NIFTSY.

1. This way you can lock liquidity in an expensive chain once and transact in a cheaper one using an NFT-key;

2. You can do bridgeless exchanges across networks;

3. It’s a great substitute for cash and in the CBDC’s time, believe me, such a tool will be in demand;

4. It gives an extra level of security, since Envelop is close to Zero-Knowledge Proof;

5. You can use smart wallet of the future, but here and now, in the present. For example you have a wallet with 100 different tokens and coins in it. How can you trustless transfer all the assets in one transaction? You can’t. You can transfer a seed phrase and/or a private key, but will the other party trust you in that case? I don’t think so.

So you get 2 simple schemes:

• A scheme about claim ownership in different chains through a single wNFT.

A scheme about WHAT is fundamental about owning wNFT as a smart-wallet

Envelop is a collateral-backed and price discovery cross-chain protocol to provide NFT with inner value and liquidity.

🌎 Website | 🐦 Twitter | 🗯 Telegram-chat | 🐱 Github | 📢 TG channel

📩 Wrapper dApp | 🌾 Farming dApp | 🗂 SAFT wNFT | 🔨 Mint