Fractional NFT Bazaar
The platform enables users to fractionalize NFTs and release them under one shared ownership token allowing those with less knowledge of the scene to invest in digital art piece with less collateral
Created on 11th April 2021
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Fractional NFT Bazaar
The platform enables users to fractionalize NFTs and release them under one shared ownership token allowing those with less knowledge of the scene to invest in digital art piece with less collateral
The problem Fractional NFT Bazaar solves
History of NFTs shown that a very small portion of NFTs stay valuable over the long term but 99% of Non Fungible Tokens lose value after a few months and their liquidity is $0.
In the example of Crypto Kitties, over the last 7 days a total of 1051 CKs were sold on the second hand market for a total of 23K$. The biggest sale during this week was recorded at 1.2K$ and only 61 of those sales were over 100$ (5.8%) while most items traded for a few dollars. (source: CK on NonFungible.com).
Some more points to consider are as follows -
- So to provide more liquidity to NFT market we could possibly break them into fractions and then work on that level.
- As the fractions are ERC20 tokens with some extra features this opens up possibilities of Defi and NFT getting combined.
- solve the liquidity problem in secondary markets for NFTs whereby NFT owners have to wait for someone to bid or buy at an asking price for a single piece
Challenges I ran into
I had to pivot from 2 ideas and made this in the last 2.5 weeks, I am still working on an idea of flashloans with these fractional nft.I started with 2 ideas
- first was a new wallet app on layer2 which could have help save gas on mainet but then we had news about EIP1559 and was working with magic-sdk ,had to leave the project as i had issues while getting private key of users and with less communication from magic team,
- second was working on improving or starting Refungible tokens(tokens that are fractions of NFT ) and was working on improving this EIP (https://github.com/ethereum/EIPs/issues/1528) which came to a halt due to no net communication with the EIP proposing developers
After that i started working on Fractional NFT Bazaar and just a small problem that i still have is throttling of opensea rinkeby api, that hinders my ability to show images