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NPics is building the first leveraged NFT trading platform for Web3. An algorithm and protocol driven and a “bottom-up” NFT infrastructure are being built to create a liquidity engine for the NFT industry. The innovative application of NFT + DeFi, using the NFT trading market as a vehicle, allows users to safely, securely and anonymously leverage significant capital exposure and hedge the value of NFT, stimulating, securing and accelerating NFT liquidity growth in multiple means and phases.
NFT has become an integral part of the crypto world. Since the NFT Summer in 2021, the NFT market has reached a USD valuation of tens of billions, with the number of unique wallets standing above 300,000. However, the non-fungible nature of NFT and the difficulty in pricing have further led to liquidity issues such as high capital thresholds and under-utilization of funds, which has plagued NFT holders and largely limited the healthy growth of the industry.
To address the NFT liquidity issues, the market adopted the concept of NFT-Fi to increase the liquidity, priceability, accessibility and compatibility of NFT through financialization, with a view to creating a better NFT user experience and market depth.
The exploration and application of NFT × DeFi is still at a very early stage of development. Traditional participation in NFT can only be achieved by buying low and selling high, which sees a long yet inefficient investment cycle. The financial attributes of DeFi have notably unlocked the external value of NFTs, providing a depth of liquidity in the NFT market that will bring exponential additional return to holders and provide participants with the need for accurate pricing and flexible hedging.
At present, NFT-Fi has three main use scenarios: NFT ownership fragmentation, NFT lending and NFT leasing. The issue of operational thresholds, how to improve capital efficiency and how to discover and address the real needs of users are still the directions that NFT-Fi has to carefully consider.
The central focus of NPics is not on supporting NFT holders dispose of the NFTs they already own, but on how to help new NFT-intended investors be able to effectively increase capital utilization rate, which will give more people an opportunity to participate in their favorite NFTs, thus providing front-loaded liquidity to the NFT market.
“Give me a fulcrum and I can move the earth.”
Archimedes has clearly explained in simple terms how leverage works and what makes it so powerful. As the first leverage product in the NFT sector, the core functionality revolves around how leverage is used. The combination of ‘leveraged’ trading and collateralized debt positions (CDP), which are well proven in the financial markets, inspired us to use the combination of NFT leveraged trading and collateralized debt positions — NFT Debt Positions ( NBP) to help reduce transaction costs and increase capital utilization as a means of stimulating market trading and improving market resilience.
We will showcase how NPics leveraged trading is implemented with the following example.
With the NPics Marketplace, you select one of your favorite NFTs. This is an aggregated NFT marketplace where all purchasable orders displayed on Opensea, Looksrare, X2Y2 are displayed in real time.
You will find two prices displayed on the order list. One is the listed price of that NFT as displayed on exiting markets, and the other one the down payment purchase price derived from the NPics protocol algorithm. Yes, it is 40% cheaper!
All you need to do is confirm the order and complete the payment, and the NBP protocol will execute the entire cycle of flash loan — NFT purchase — NFT pledged borrow — flash repayment in one smart contract. A Vault with pledge credentials will be generated and you will be able to take full ownership of your favorite NFT when you complete your future repayment through the Vault.
The Vaults complete the full process for down payment purchase and serve as a core component of the NBP protocol. The vaults bind the original NFT and cast an 1 : 1 NEO-NFT and users can redeem pledged NFTs as well as burn and transfer NEO-NFTs supported by the Vaults. The Vaults require over-collateralization and have a Vaults owner required to preserve the over-collateralization status. There’s a liquidation ratio that the Vaults owners need to maintain to avoid liquidation of their vaults.
Flexible repayment schedule: The Vault has no fixed repayment schedule, no minimum repayment requirements and no credit history requirements. Each Vault is managed separately and you can repay at your own pace as long as you ensure the Vault is properly secured. You can also sell your Vault outright, including transfer of ownership and profit settlement.
Health Factor & Liquidation: NPics determines the liquidation criteria by scoring the ‘health factor’ from 0 to 1. If the health factor reaches 1, it will trigger liquidation of your debt. Once liquidation takes place, you will need to go to the lending platform via the Vault to continue to track the status of the pledge order.
Rewards： NPics uses an smart algorithm to prioritize the best NFT lending agreement for NFT pledged lending, and NPics will fully retain all incentive earnings generated by that protocol for the user, who can receive these additional earnings directly through the NPics dashboard.
True ownership: NEO-NFT is designed to provide full security and vault functionality with the exact same metadata and token ID as the original NFT, meaning that holding a NEO-NFT does not affect the possibility to claim an airdrop even if the original NFT is pledged or locked. The user can claim the airdrop with one click via NPics at the pledge period.
Liquidity is King! NPics is committed to stimulating, retaining and expanding the development of liquidity through solutions in different stages.
Leverage is used to maximize controlled exposure for relatively small amounts of capital, thereby stimulating and amplifying the NFT transactions volume and releasing capital benefits while effectively controlling risk. NPics employs multiple strategies to maximize the retention and utilization rate of capitals, while generating sustainable passive returns, providing flexible funding and risk hedging tools, and expanding the breadth of the market in depth. Ultimately, NPics will become an open and comprehensive marketplace for trading NFT spot and derivatives — a liquidity leader in the NFT space.
We’d love for you to get involved! Join the NPics community and follow us for updates at:
Website: https://www.npics.xyz/
Twitter: https://twitter.com/NPicsNFT
Discord: https://discord.gg/npics
Telegram: https://t.me/npicsannouncement
Medium: https://medium.com/@npics.xyz
NPics is building the first leveraged NFT trading platform for Web3. An algorithm and protocol driven and a “bottom-up” NFT infrastructure are being built to create a liquidity engine for the NFT industry. The innovative application of NFT + DeFi, using the NFT trading market as a vehicle, allows users to safely, securely and anonymously leverage significant capital exposure and hedge the value of NFT, stimulating, securing and accelerating NFT liquidity growth in multiple means and phases.
NFT has become an integral part of the crypto world. Since the NFT Summer in 2021, the NFT market has reached a USD valuation of tens of billions, with the number of unique wallets standing above 300,000. However, the non-fungible nature of NFT and the difficulty in pricing have further led to liquidity issues such as high capital thresholds and under-utilization of funds, which has plagued NFT holders and largely limited the healthy growth of the industry.
To address the NFT liquidity issues, the market adopted the concept of NFT-Fi to increase the liquidity, priceability, accessibility and compatibility of NFT through financialization, with a view to creating a better NFT user experience and market depth.
The exploration and application of NFT × DeFi is still at a very early stage of development. Traditional participation in NFT can only be achieved by buying low and selling high, which sees a long yet inefficient investment cycle. The financial attributes of DeFi have notably unlocked the external value of NFTs, providing a depth of liquidity in the NFT market that will bring exponential additional return to holders and provide participants with the need for accurate pricing and flexible hedging.
At present, NFT-Fi has three main use scenarios: NFT ownership fragmentation, NFT lending and NFT leasing. The issue of operational thresholds, how to improve capital efficiency and how to discover and address the real needs of users are still the directions that NFT-Fi has to carefully consider.
The central focus of NPics is not on supporting NFT holders dispose of the NFTs they already own, but on how to help new NFT-intended investors be able to effectively increase capital utilization rate, which will give more people an opportunity to participate in their favorite NFTs, thus providing front-loaded liquidity to the NFT market.
“Give me a fulcrum and I can move the earth.”
Archimedes has clearly explained in simple terms how leverage works and what makes it so powerful. As the first leverage product in the NFT sector, the core functionality revolves around how leverage is used. The combination of ‘leveraged’ trading and collateralized debt positions (CDP), which are well proven in the financial markets, inspired us to use the combination of NFT leveraged trading and collateralized debt positions — NFT Debt Positions ( NBP) to help reduce transaction costs and increase capital utilization as a means of stimulating market trading and improving market resilience.
We will showcase how NPics leveraged trading is implemented with the following example.
With the NPics Marketplace, you select one of your favorite NFTs. This is an aggregated NFT marketplace where all purchasable orders displayed on Opensea, Looksrare, X2Y2 are displayed in real time.
You will find two prices displayed on the order list. One is the listed price of that NFT as displayed on exiting markets, and the other one the down payment purchase price derived from the NPics protocol algorithm. Yes, it is 40% cheaper!
All you need to do is confirm the order and complete the payment, and the NBP protocol will execute the entire cycle of flash loan — NFT purchase — NFT pledged borrow — flash repayment in one smart contract. A Vault with pledge credentials will be generated and you will be able to take full ownership of your favorite NFT when you complete your future repayment through the Vault.
The Vaults complete the full process for down payment purchase and serve as a core component of the NBP protocol. The vaults bind the original NFT and cast an 1 : 1 NEO-NFT and users can redeem pledged NFTs as well as burn and transfer NEO-NFTs supported by the Vaults. The Vaults require over-collateralization and have a Vaults owner required to preserve the over-collateralization status. There’s a liquidation ratio that the Vaults owners need to maintain to avoid liquidation of their vaults.
Flexible repayment schedule: The Vault has no fixed repayment schedule, no minimum repayment requirements and no credit history requirements. Each Vault is managed separately and you can repay at your own pace as long as you ensure the Vault is properly secured. You can also sell your Vault outright, including transfer of ownership and profit settlement.
Health Factor & Liquidation: NPics determines the liquidation criteria by scoring the ‘health factor’ from 0 to 1. If the health factor reaches 1, it will trigger liquidation of your debt. Once liquidation takes place, you will need to go to the lending platform via the Vault to continue to track the status of the pledge order.
Rewards： NPics uses an smart algorithm to prioritize the best NFT lending agreement for NFT pledged lending, and NPics will fully retain all incentive earnings generated by that protocol for the user, who can receive these additional earnings directly through the NPics dashboard.
True ownership: NEO-NFT is designed to provide full security and vault functionality with the exact same metadata and token ID as the original NFT, meaning that holding a NEO-NFT does not affect the possibility to claim an airdrop even if the original NFT is pledged or locked. The user can claim the airdrop with one click via NPics at the pledge period.
Liquidity is King! NPics is committed to stimulating, retaining and expanding the development of liquidity through solutions in different stages.
Leverage is used to maximize controlled exposure for relatively small amounts of capital, thereby stimulating and amplifying the NFT transactions volume and releasing capital benefits while effectively controlling risk. NPics employs multiple strategies to maximize the retention and utilization rate of capitals, while generating sustainable passive returns, providing flexible funding and risk hedging tools, and expanding the breadth of the market in depth. Ultimately, NPics will become an open and comprehensive marketplace for trading NFT spot and derivatives — a liquidity leader in the NFT space.
We’d love for you to get involved! Join the NPics community and follow us for updates at:
Website: https://www.npics.xyz/
Twitter: https://twitter.com/NPicsNFT
Discord: https://discord.gg/npics
Telegram: https://t.me/npicsannouncement
Medium: https://medium.com/@npics.xyz
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