Hello everyone, Anyfty team is here ❤️. Today we would like to talk about our project and release our first Medium article. We had a nice journey for a couple last months, examining everything to the smallest detail and now we are ready to share information with the audience. This is the first article of a series on the Anyfty protocol, so in each article we will consider different topics, and today we will start with the basics.
What is Anyfty?
Anyfty.io is a decentralised p2pool protocol build on FLOW blockchain that allows to wrap NFTs into synthetic fungible tokens and use them as collateral for borrowing, trading, swapping and holding.
In other words, the protocol allows users to put (we call it to wrap) NFTs minted on the FLOW blockchain into the Index, and in return receive equivalent tokens of a particular Index. For further ease of understanding, we call these tokens $NFT_01. These tokens can be used as collateral for issuing a loan within the Anyfty protocol to receive liquidity in the FUSD stable coin. $NFT_01 owners can also sell tokens on decentralized exchanges (DEXes), exchange them back for NFT via Anyfty Index, or simply keep them on their wallets and wait for the Index price to rise. At the very beginning, the protocol will only support the NBA Top Shot collection, but in the future, such collections as MotoGP Ignition or UFC and others will also be supported.
What problem does Anyfty solve?
To understand what problem Anyfty solves, firstly let’s figure out what NFTs are. NFTs are basically collectible tokens which are not fungible like ETH or BTC. They are often used as an investment or speculative instrument due to the regular increase in value associated with limited releases and overall rapid growth of the market. All NFTs are different by their nature and because of this, it becomes difficult to evaluate a correct value. Anyfty unifies various NFTs by combining them into Indexes and creates additional tools for working with such Indexes to increase liquidity.
We decided to divide NFTs into two main problematic groups:
Rare NFTs — The first group includes rare NFTs on the FLOW blockchain that can reach up to $250,000. This creates certain problems for the owners. As for today, for the NFT worth $250,000 in BTC / ETH or any other fungible token, to gain liquidity, the owner can only sell such NFT if someone will buy it. Unfortunately there may be no opportunity to buy the same NFT back at the same value, or to return back it at all, as it may not be listed on marketplaces anymore.
Low-cost and similar NFTs — The second group is related to low-cost NFTs issued in fairly large circulations, for example, 10,000 simmilar pieces. A set of hundreds requests for sale on the secondary market are quite identical to each other and differ only by price. As a result, only NFT with the lowest price in the category will be sold.
Anyfty solves these problems by providing NFT owners with the tool to wrap their assets into synthetic returnable fungible tokens $NFT_01 by wrapping their NFTs into Indexes with united liquidity. $NFT_01 tokens then might be used as collateral, traded or exchanged on a market.
In the next article, we will discuss the roles and values of protocol participants such as Borrowers, Liquidity Providers, Stability Providers and Liquidators.
You can always read our full existing technical documentation at docs.anyfty.io, or ask any question using Telegram https://t.me/anyfty_discussions.
We would really like to get your feedback ❤️.
