As Unicly advances NFT combination, fractionalization, and trading, an integration with Sushiswap’s auction platform is designed to promote better pricing conditions for utoken creators and buyers.
Collaboration Designed to Improve NFT Price Discovery Process
Despite the cooling hype surrounding NFTs, there has been no shortage of innovation in the space as non-fungible token projects explore other use cases. Echoing the fractionalization that blockchain technology champions in other areas, up-and-coming projects are embracing similar methodologies in the NFT arena.
Fractionalization of NFTs effectively means splitting a single NFT, or a collection of NFTs, into smaller, fractional pieces that can be bought and sold in primary and secondary market transactions. Instead of users having to spend enormous sums on a single NFT, this solution gives investors a practical way to gain exposure and fractional ownership of the work or collection of works.
Unicly, a permissionless protocol, is designed to assist NFT holders with combining NFT collections, fractionalizing collections through the minting of utokens, and facilitating token offerings through its automated market maker platform (a type of decentralized exchange or dex). At present, the protocol features more than $65 million worth of NFTs from different collections.
One of the challenges the project has run into is that the holder of the NFT(s) minting utokens must go ahead and provide all the capital in the form of liquidity to market the tokens, thereby taking on all the risk directly. The decision to embrace Sushi’s MISO auction methodology is designed to alleviate some of these pressures on sellers.
Miso, a tool in the Sushiswap stack, can be considered a launchpad, which effectively follows a model similar to an IPO in traditional financial markets or an initial dex offering (IDO) in crypto markets. Besides giving Unicly users a path to monetize their holdings by…