Picipo Finance. Secondary liquidity for digital valuables wrapped in NFTs
One of the Picipo missions is to create secondary liquidity for values that can be wrapped in NFTs. We are committed to creating an understandable environment in which any user with valuable digital content can create a fully decentralized NFT Index with real backing.
At the first stage, our users will be able to use the following unique mechanics:
The user can send his NFT collection to the white list for fractionalization, while the user undertakes to put liquidity in USDT / ETH on DEX. The DAO decides to add to the white list by voting. If successful, the user can create a pool from the locked NFT collection and mint 1000 ERC-20 tokens derived from the NFT pool (hereinafter referred to as dERC-20 — ERC-20 derivatives). The distribution of dERC-20 between the user and the DAO is based on the number of NFTs in the pool. If there is N NFTs in the pool, the DAO fund receives 1/N dERC-20, the user gets all the rest. After minting dERC-20 and distribution to the NFT pool, the user cannot add ERC-721, we deliberately close the pool for adding new NFTs in order to protect the index from liquidity erosion and so that Market Makers can take this into account in their strategy in the future. NFTs only can be obtained from the NFT pool, each NFT from the pool is equal to 1/N dERC-20.
What opportunities do users get?
1. Distribute dERC-20 among the co-owners of the NFTs (this applies to any intellectual property that is co-authored).
2. After fractionalization and distribution, the user creates a pair on DEX and supplies liquidity in dERC-20 and USDT/ETH. It is assumed that dERC-20 buyers will try to buy out the largest amount of dERC-20 in order to get the largest amount of NFTs from the NFT pool. Moreover, the more valuable the collection is, the more buyers will try to buy out dERC-20, and sellers will expect the best sale price. Thus, a fair price for the NFT will be formed, which will make it possible to call this pool a secured NFT Index.
Now replace the NFT collections with any other digital property, including fungible one. And here we have the first honest way to create a decentralized index with real backing.
For example, if the NFT of the ERC-1155 standard, which is placed in a pool, contains ERC-20 tokens of such projects as: UNI, SUSHI, 1INCH, BAL, CAKE and others, we can call this pool Tier-1 DEFi INDEX, while trading dERC-20 of this pool on DEX, determining the real price of a basket. In this case, different buyback rules should be used, but more on that later.
The next example is NFT tickets to the whitelist for Lanchpads and their DAOs to participate in project investment. NFT tickets can be placed in pools, the owners of native DAO tokens have the right of redemption. Accordingly, the cost of the right to participate in investment will be determined by the real demand for participation in a particular project, and not only by the time of the open window and the speed of the cheat script.
Total value:
1. The market for primary and secondary liquidity (and in general — any other) is becoming a single market.
2. NFTs uniqueizes (as in Uniswap 3.0) the liquidity of any pool / exchange, etc., but at the same time allows it to be changed (this is not the case today).
3. In the first place comes not the exchange, but the pledge function, which means that the possible combination of two currently conflicting systems: monetary and reputational.
4. And in fact, we go to levels where liquidity has one parameter: time demand.
Thus, we come to a new round in the understanding and development of the NFT market, where a unique token is not just a picture with a cat, but a trigger for the development of the legal system in a decentralized environment.
Written by:
Menaskop, Picipo advisor & Valera Ivasenko, Picipo CPO
About Picipo
Picipo is a unified NFT management platform & marketplace built on commit-chain by Polygon. Using the Picipo platform, users can go all the way through NFT creation by choosing the preferred monetization model. The platform goes beyond the online market and crypto society, solving the native problems of the fiat market. Thus, Picipo is a place where it becomes easy for everyone, even not aware of the blockchain technology, to create, buy, sell and leverage NFTs in its user-friendly interface uniting various NFT + DeFi tools and mechanics.
