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Overview of NFTX ( NFTX )
LearnNewbieNFT
May 25, 2022

Overview of NFTX ( NFTX )

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Liquidity is considered an important factor, indispensable for any asset class, including NFT. One of the potential platforms supporting increased liquidity for NFT assets today is NFTX.

What is NFTX (NFTX)?

NFTX is known as a platform that facilitates the liquidity creation process for NFTs. Users will deposit NFT into NFTX and mint ERC20 tokens bearing vToken. These are coins that represent NFT assets and are used to convert from NFT to vault.

With NFTX, users can create and trade tokens based on their favorite collections like CryptoPunks, CryptoKitties, and Avastars right from a DEX.

Essentially, NFTX is a protocol built on the Ethereum Blockchain that allows users to deposit their NFT collections into pools. The platform then returns the respective ERC20 token to the user and uses it as a composable currency in the broader DeFi ecosystem. This means you use NFT as collateral for anything in the DeFi ecosystem, like:

What problems can NFTX solve for NFTs?

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Since NFTs are non-fungible in nature, their prices can vary, so liquidity is often very low. Unlike swappable tokens, which trade on exchanges, users must buy and sell NFTs by setting a presale price or buying directly from the seller.

Poor liquidity has created certain disadvantages for market participants. It is much more difficult for users to enter and leave the market.

For example, if someone wants to get exposure to Crypto-Punks, which are popular collectibles, you have to approach the seller and set a price. At the same time, the Crypto-Punk owner had to put his watch up for sale and wait for the buyer. Even trading is quite difficult if someone wants to buy or sell many Crypto-Punks at the same time.

It is difficult for traders to determine the exact price of NFT. This makes it much more difficult to use NFT as an asset in Defi. At the same time, the NFT is not divisible.

NFTX Solution

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NFTX solves these problems by wrapping NFTs into ERC20 tokens, which represent funded NFTs. The NFTX platform will pool similar NFTs together into funds. The ERC20 tokens represent the NFT in the fund. Simply put, NFTX turns NFTs into fungible tokens.

In the NFTX ecosystem, there are 2 types of funds: D1 funds and D2 funds.

D1 funds

This is an input source of funds, with 1:1 support between an NFT contract and an ERC20 contract. For example, to own 2 PUNK-ZOMBIE, players can exchange exactly 2 CryptoPunks Zombies at any time.

For example, Punk-Basic funds, including Crypto-Punks NFTs, are locked in NFTX. The PUNK BASIC token represents the underlying NFT under this fund. When a user submits a basic Crypto-Punk, they will receive an ERC20 token in return. At the same time, users can also exchange random NFTs from the fund in exchange for tokens.

Although NFTX makes NFTs more liquid than before, it cannot be compared with major cryptocurrencies like BTC or ETH. A fund’s market capitalization typically depends on the number of NFTs locked up. The goal of NFTX is to turn a large amount of NFT locked onto the platform into massive liquidity for users.

D2 funds

This is the source of funds combined with the D1 fund. For example, AVASTR will be a D2 fund that combines 3 different Avastar D1 investment funds (AVASTR-BASIC, AVASTR-RANK-30 & AVASTR-RANK-60). The goal of this is to provide more diverse visibility without requiring users to hold too many tokens. Thus, any user can gain exposure to the vast cryptosphere by purchasing tokens on NFTX platforms.

How Does NFTX Work?

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Without NFTX, accessing users’ NFT collections would cost at least $250,000 at the floor price. The creation of NFTX will completely remove the barrier and give users easy access to famous NFTs such as CryptoPunks, Doodles, Cool Cats, World of Women, Chromie Squiggle, Meebits, and CrypToadz by GREMLIN, etc. Two Steps The main mechanism of operation of NFTX will take place as below:

Step 1

Convert NFT to ERC20 tokens by depositing NFT in the NFTX vault. These tokens are called vTokens, and they represent 1:1 ownership of the random set of NFTs in the vault. For example, if you own NFT CryptoPunk, you can convert them into PUNK coins.

Step 2

Participate in NFTX Inventory Staking to convert vToken to xToken. xToken holders will receive a reward from transaction fees generated by NFTX vault activity (mint, buyback, swap). Therefore, users can optimize profits as well as consolidate the number of xToken holdings as much as possible.

What is an NFTX coin?

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The NFTX coin is the official governance token of the NFTX platform. NFTX holders have control over the pool of ETH, NFT, and the rest of the NFTX tokens. Currently, the project is focusing on increasing NFT locked in the TVL fund. Some tokens seem viable for the project to generate revenue in the future.

NFTX coin is based on the Ethereum Blockchain, ERC20 standard. When holding NFTX, users will enjoy benefits such as:

  • Easy access to system features.
  • Use premium features and services in the NFTX ecosystem.
  • The right to administer, participate in voting, and propose ideas for future development of NFTX

Basic information about the NFTX coin

Token Name: NFTX.

Ticker: NFTX.

Blockchain: Ethereum

Token Type: Utility Token

Token Standard: ERC20.

420,000 circulating supplies

Total supply: 650,000.

650,000 maximum supply

The 24 hour trading volume on May 17, 2022 is $7,485.

$22,921,129 in market capitalization

Contract: 0x87d73e916d7057945c9bcd8cdd94e42a6f47f776

Token Allocation

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NFT Contributions: 30%, or about 195,000 NFTX

ETH Contributions: 30% coins, about 195,000 NFTX

Farming: 20% coins, about 130,000 NFTX

Founder: 10% coins, approximately 65,000 NFTX

NFTX Liquidity: 10% coins, approximately 65,000 NFTX

How do I get my hands on the NFTX coin?

  • Users can participate in staking on NFTX to earn rewards for NFTX coins.
  • In the system, you can buy or exchange NFT collections.
  • Purchase NFTX coins from listed exchanges such as Gate, Poloniex, Uniswap, Hotbit, and others.

Where can NFTX coins be bought, sold, and stored?

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NFTX coin is currently listed and supported for trading on a number of exchanges, including Gate, SushiSwap, UniSwap, Hotbit, and others.

NFTX coin is the most actively traded on Hotbit, accounting for 293.92% of the total trading volume. You can choose one of the exchanges to buy and sell NFTX coins.

NFTX is an ERC20 token. As a result, you can safely store it on supported e-wallets like MetaMask, MyEtherWallet, Trezor, TrustWallet, Coin98, and others.

Project team, investors, and partners

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Project team

The idea of the NFTX project was first initiated by Alex Gausman. He is the CEO and founder of NFTX. In January 2021, NFTX started to launch its project. However, the foundation of NFTX is strongly developed by the DAO organization—a group of community members, contributors, and core members who band together to build the main liquidity center for NFT.

Because NFTX is an open organization, anyone can join to provide expertise or supplement resources with the common goal of promoting great growth for NFTX.

Investors and Partners

Currently, NFTX is cooperating with some big projects in the market, such as Floor DAO, Scalara NFT Index.

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