Thousands of GameFi and cryptocurrency projects are combining NFTs and DeFi. In this blog, we dive into what makes GoFungibles different.
What is DeFi?
DeFi is the short form of decentralized finance. DeFi is a disruptive universe of financial services open to everybody because it is built on a decentralized ledger known as a blockchain.
Legacy centralized finance is controlled by middlemen like brokerages and banks, where centralized institutions manage the holders’ accounts. These centralized control points are trusted to decide who can or can’t participate, and they can block transactions or freeze funds without recourse.
DeFi changes the game. The user controls their funds, and transactions are settled on the blockchain by computer nodes on the Internet according to exact rules.
What is Staking?
Staking is a central element of a decentralized finance ecosystem.
Like mining, staking is a method of participating in transaction validation on a proof-of-stake (PoS) blockchain. A user does this by locking their cryptocurrency in a specified manner that supports the network. There is usually a minimum balance requirement a user must hold to be able to stake. The holder staking is rewarded with staking rewards, traditionally paid in that cryptocurrency.
GoFungibles
No NFT platform has the functionalities of Staking, Farming or NFT Collateralized Loans. This is an entirely new idea.
Up to now, NFTs have had minimal use cases and can only be traded on the platform or held in the owner’s crypto wallet in the form of digital art. While this is fine for speculators, this use case will quickly dry up. The actual adoption of NFTs requires a self-supporting economic ecosystem. This is brought into existence by the GoFungibles platform.
Here is how the platform helps NFT owners to capitalize on their NFTs using DeFi:
- Conventional and NFT staking/farming
The $GFTS token powers GoFungibles. Holders can farm or stake their NFTs and are rewarded with $GFTS tokens and a chance to win rare NFTs. This is a new form of yield farming that the team behind GoFungibles expects will take the NFT and crypto worlds by storm.
The $GFTS tokens provide the liquidity to use otherwise dormant NFTs. By making the staking portal intuitive and user-friendly, NFT Farming will be made accessible to the masses for the first time.
Users can NFT farm by locking their approved NFTs into the platform’s staking pool. If their NFT is on another platform, they can port it to the GoFungibles platform. They then can start receiving $GFTS tokens or a chance to win rare NFTs. To qualify, NFTs will need to be listed on the GoFungibles platform first.
2. NFT Collateralized Lending and Borrowing
Lending and borrowing with crypto has made Defi an exceptional product capable of disrupting centralized finance. A smart contract covers each party involved.
NFTs are an excellent advancement in the blockchain world, but they still lack liquidity and utility. NFT assets are usually stored in wallets unless traded or used in specific games. Here is how DeFi works with NFTs on GoFungibles.
Lending/borrowing features with NFTs as collateral is a brand new arena, leaving a vast vacuum that GoFungibles will fill. On the GoFungible portal, users can collateralize their NFTs to lend and borrow against.
GoFungibles also plans to create a community-run decentralized NFT valuation process using a voting system, computer code, and a user-friendly interface to assist in determining the efficient price discovery of an NFT.
3. Gamified NFT and Yield farming
In crypto gaming, players fully own their in-game assets. By operating with a play-to earn mechanism, players on the runner-game Metarun can earn passive income and continue to grow it. Players can earn tokens and NFTs from within the game, accumulating, selling, or using them to upgrade their NFT characters. These upgraded characters can be used to gain more tokens and so on.
GoFungibles will also feature NFT leasing, a new way to capitalize on game NFTs inducing further liquidity and utility. Owners lease out their in-game character NFTs for a specified amount of time in return for a percentage of the earnings.
All these elements mean a new gamified NFT ecosystem with DeFi programmed in. One that the GoFungibles team is expecting to see explode.
Contact
Learn more about GoFungibles and its ecosystem across the web and social media here:
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