Figures and facts
Last updated
Last updated
Let's start with the industry’s segmentation. According to the approach we have developed, the complex P2P-solutions market will evolve over the next 5-10 years primarily in DAO and DEX integration. This will be done both by moving offline entities to online entities (tokenization) and back, and by directly interacting crypto-asset markets with fiat and other markets, including through the developed gateways.
The pilot implementation of the first trend was the creation of the ICO market which bore the DeFi market, and from 2017 to 2021 the second showed staggering growth in a variety of indicators: from the number of created services to capitalization and the total number of users (however, it is still small which proves further potential for development).
The period from 2020 and 2021 was the beginning of the first large-scale DeFi integrations with NFT models. Here are some simple, but detailed examples:
Uniswap - integration with liquidity protocol in version 3.0;
YFI - insurance policy in the form of a non-interchangeable token;
AAVE - creation of a collateral drive via NFT.
Why does this happen?
One obvious answer to this question is precisely in the growth of both DeFi and NFT markets:
That is, there are so many ERC-20 and other tokens (ERC-223, ERC-777, EOS-21, etc.) within the DeFi market, that their aggregation via NFT is necessary. Tokens and the like can take up quite a lot of space (ERC-20, 223, 777, 721, 998, 1155, 1400, 1410, 1594,1643, 1644, 884, 1404, 1450), and also there are TRC-20, ST-20, DS-standard, R-standard, S3, Atomic-DSS, BEP-2, BEP-7, EOS-21, TZIP, OEP-4, 5, 506, QRC-20, VIP-1801, VIP-181 and many others, each of which can be further categorized as an interchangeable and non-interchangeable token. And then tokens are gradated by functionality: a utility token and non-utility token (this term includes not only security). And thereafter another token, and another, and many others. Thus, NIFTSY actually creates a tool to unify the aggregation of tokens based on one important criterion – security which means the demand for the asset (asset group) in the market.
There’s a simple rule: centralization is a last resort, and unification is necessary. And therein lies several useful functions realized at the same time by NFT-implementations.
However, P2P-economy today contains an almost unlimited number of possibilities. So, let's try to consider the one from another angle, through integration of NIFTSY as a Protocol.
By wrapping liquidity tokens (LP-tokens) in NFT, one can eliminate various liquidity attacks, which have literally become the scourge of the DeFi market (just think of cases of so-called vampire mining). Given the architectural features of the POS family, such attacks will continue evolving both quantitatively and qualitatively. For this reason, it’s the proper time to think about eliminating attacks at the core system level, because it would be unlikely without protocols and especially without low-level protocols.
An important aspect is the fact that NFT allows the creation of ETFs (exchange traded funds) as well as simple units. This approach is useful for different groups of investors at the same time. For beginners, it helps to find among of created projects those in which you can invest without losing all your investment when the asset falls, for example, by creating a collateral NFT which includes BTC, ETH and tokens on different platforms. It is easy to segment services, assets, etc., and select the ones that the user needs.
Thus, by assembling integrations of VR/AR/MR/XR and blockchain solutions (such as Decentraland with a native MANA token), one can get a contribution to a segment without complex primary search evaluation and/or analysis approaches. For professional investors, however, this approach allows using the toolkit of asset exchanges without multidimensional swap transactions where not only asset transfers themselves need to be unified, but also the standards of asset issuance. That is, any fund can acquire, for example, a set of ERC-20, ERC-721, ERC-998 tokens, and with them bundled WBTC and other native coins of different blockchains wrapped in the Ether network, or in any other network where tokenization through any entities is possible: tokens, patterns, etc., by means of primitive smart contracts. Without any unnecessary intermediary entities and/or legal entities.
Finally, NFTs with a uniform roll-up and roll-down mode (wrap//unwrap model - WUM) provide the ability not only to tokenize any unique entities around DAO/DEX, but also to do so according to certain rules. Thus, a decentralized, and, therefore, conditionally independent tool of the same DAOs’ external certification is formed due to the network security of the initial collateral value (see Cases below).
