Panwfi Up Close: A Paradigm Shift In The NFT Space

Non-fungible tokens have taken the world by storm. A foreign concept to the majority just a few years ago, today it seems like everyone knows about the Bor Aap Yacht Club or a myriad of other popular collections.

And yet, to those in the know, it is clear that the market for non-fungible tokens is illiquid today, especially compared to cryptocurrencies.

Of course, this is partly because NFTs are, well, non-fungible compared to their alternative counterparts in the face of bitcoin, ethereum and others. After all, you don’t care which exact BTC you own, but the difference between the two NFTs could easily be worth hundreds of thousands of dollars.

Pawnfi is a project that aims to advance NFT liquidity in a way where “finance” is more but an exclusive club. The project strives to become a leading solution for NFT finance, providing various revenue opportunities for market participants regardless of their level of expertise or background.

Pawnfi is above the competition

While exciting and explosive, the world of non-fungible tokens is still very nascent. Some of the challenges it faces, such as a lack of widespread liquidity for entrants, as well as a lack of general tooling, are still considerable barriers to entry, even for crypto natives.

Pawnfi’s approach is foolproof, and aims to introduce a paradigm shift in the way NFTs are traded, exchanged and altogether interacted with.

It comes with many interesting and innovative features, such as:

• Comprehensive P-Token Design
• flash trades
• leverage nft trading
• immediate liquidity

The bottom line is that Pawnfi’s comprehensive solutions are designed to meet the diverse needs of the NFT community and are also user-friendly and highly intuitive.

A closer look at the innovative features of Ponfee

First of all, it is worth noting that Pawnfi is powered by some of the most renowned VCs in the industry such as DCG, Coinbase, Polygon, Animoca Brands and others.

Through P-Token, the project aims to introduce a new approach to trading and interacting with NFTs.

In essence, each NFT collection is represented by a unique P-Token, which acts like a digital currency. This allows the trading and use of NFTs in a way that is reminiscent of financial transactions in DeFi. For example:

• Any BAYC NFT owned would be worth 1,000 P-BAYC and vice versa.
• Ownership of any Azuki NFT would be equivalent to 1,000 P-Azuki, and vice versa.

You got it.

myriad of abilities

With this in mind, Pawnfi offers a range of different services as a gateway of sorts between P-Tokens and NFTs.

These include, but are not limited to:

flash trades

These represent instant NFT and P-Token exchanges. Holders are able to sell NFTs for 1,000 P-Tokens in real-time and then use the same amount of P-Tokens to buy NFTs from the Ponfi NFT Vault.

The interesting thing here is that Pawnfi allows traders to swap P-Tokens for NFTs in two different ways – specific or random. In other words, if users are feeling a bit more playful, they are able to retrieve a randomly selected NFT from the vault. This function indicates that trades are instant – both buy and sell.

leverage

NFT Leverage allows users to borrow P-Tokens using their own NFTs as collateral. The LTV (loan-to-value) ratio is fixed at 100%, and both the loan and interest are denominated in P-tokens. It provides some kind of protection against mid-term liquidation risks when the minimum value of the project is reduced.

Furthermore, users are able to take advantage of the cross-margin lending market. This mechanism is similar to Aawe and Compound where the DeFi money market is built. However, with the design of the P-Token, now NFTs can play the same role here. Imagine having a supply of 2 Azuki as collateral and a supply of ETH – 2000 P-Azuki is now supplied in this lending market and others can borrow from the pool. That is, when an Azuki holder redeems and withdraws an NFT, he will likely earn some P-Azuki in the form of interest revenue.

Remittance

In essence, Pawnfi’s tranche guarantees that tokenization is not limited to fully non-fungible tokens that are near minimum value. It also means users can count on instant payouts on NFT sales, eliminating the need for holders to shortlist their listings in order to secure quick deals.

Above all, Pawnfi’s P-Token design meets the immediate liquidity needs of diverse user profiles and integrates NFTs into the DeFi playbook.

Early access to Ponfi’s exciting platform

As the team prepares for the grand launch, the Early Access extension to select communities is a strategic move aimed at refining the platform and customizing its user experience even further.

Through a private beta phase, the team has already engaged with industry pioneers, testers, audit partners (such as PeckShield) and a variety of investors.

However, to express our gratitude to the loyal supporters, early adopters, supporters and everyone who has supported the success of Ponfi, the team is unveiling the Ponfi Early Access phase and adding an invitational program. This comes with many perks, so don’t hesitate to check out the official distro for more details.

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