Thread by @0xJim

1/ ETHcc takeaway #2: NFTs and DeFi are rapidly colliding together

NFTs have seen a resurgence since its peak earlier this year led by new pfp projects like BAYC, generative art like @artblocks_io, 1/1s like @Ghxsts

And I don't need to restate the crazy punk pump today lol

2/ Now NFT holders are facing the same problems that early crypto holders xp'd, esp those who have a big portion of their net worth in digital assets:
+ how do i get liquidity for my holdings
+ how get i get value generated from my NFTs

that's where the power of defi comes in

3/ liquidity

NFTs are illiquid assets. @nftx and @NiftyMuseum created pools that basically tokenized NFTs 4 easier buying selling + swapping

@genie_xyz takes it 1 step further: an aggregator for NFTs, routing to any liquidity source - even os or fnd - for the best order fill

4/ ofc @genie_xyz can connect to liquidity pools like NFTX for fills as well, consolidating the fragmented sources of liquidity across nfts

@NftTrader adds another dimension to NFT liquidity by mimicking traditional financial markets with OTC orders and swaps

5/ if holders are interested in other ways of accessing liquidity without just selling/buying, @fractional_art just launched which allows for fractionalized ownership of NFTs

now, sellers of rare pieces + collections can sell through another avenue

6/ and the NFT newcomer can purchase either

(1) a small piece of rare art, or

(2) a piece of a collection that gives the holder spread exposure to a basket of goods, instead of the idiosyncratic risk of one specific piece

7/ i personally hold ABC123 on fractional because I wanted exposure to @artblocks_io as a project but didn't want to lock up a ton of ETH into one piece of one collection

(im also not affiliated with this project in any way, i just like the art blocks)

8/ liquidity can also mean access to a line of credit from a collateralized holding

the holy grail of NFT holders is a permissionless, accurately-priced, and risk-adjusted way to stake NFTs as collateral to borrow against

@BunchyProtocol is the starting point of that vision

9/ i still think we're a bit away from permissionless value generation for NFTs, but it's obvious to see that defi and NFTs are rapidly merging

a foundational principle of defi is that every asset should be a productive asset. every bit of your money makes more money

10/ i have NFTs just sitting in my wallet looking pretty, when in theory i could be making money off of them

programmable licensing of my NFTs to earn income through media referencing them

lending my NFTs to protocols like @BunchyProtocol for borrowers