Increasing NFT liquidity continues to be an important piece of core infrastructure. One of the longstanding players in NFT liquidity space is NFTX. While our recent report discusses NFTX amidst the various other NFT financialization protocols, let’s dive deeper into NFTX.
A Brief Introduction to NFTX
NFTX is a marketplace and liquidity protocol that facilitates buying and selling of NFTs.
Collectors can deposit whole NFTs into an NFTX vault and mint fungible tokens (vToken) that represent the value of the NFT. At any point, the collector can use their vTokens to purchase a random asset from within the vault. Alternatively, an individual can redeem a specific token from the same vault by paying an additional fee (termed target redemption).
NFTX’s design provides several key benefits to various stakeholders, the primary of which are earning yield on idle assets & instant liquidity.
Non Fungible Yield
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