What Is NFTX?
NFTX is a platform that brings decentralized liquidity to the often illiquid NFT markets. It is also the native governance token of the platform, giving holders the ability to participate in the decision-making process and shape the organization’s future.
Background
Alex Gausman founded NFTX in 2020.
How It Works
NFT markets often suffer from liquidity issues due to the unique nature of each NFT. NFTX seeks to address these issues by creating an ecosystem where NFT owners can deposit their NFTs into a vault, minting a corresponding ERC20 token.
When users deposit their NFT into an NFTX vault, the platform mints a corresponding vToken. This vToken represents a claim on any asset within the corresponding vault.
The benefits of this system include:
- The ability to earn yield rewards from staking or providing liquidity.
- Increased liquidity for NFT investors specific to particular projects.
- The ability to sell NFTs instantly.
Key Takeaways
- NFTX is a platform that provides decentralized liquidity to the otherwise illiquid NFT markets.
- The NFTX is also a governance token, allowing holders to participate in decision-making.
- The platform was established by Alex Gausman in 2020.
- NFTX allows NFT owners to deposit their assets into a vault, which then mints a corresponding ERC20 token.
- The system provides benefits such as earning yield rewards, increased liquidity for specific projects, and the ability to sell NFTs instantly.
