Proceedings of the 2024 2nd International Conference on Digital Economy and Management Science (CDEMS 2024)

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Unleashing NFT Liquidity with DeFi Current State of NFTFi Translation

Authors
Tianyi Zhang1, *
1College of Communication Engineering, Jilin University, Changchun City, Jilin Province, 130012, China
*Corresponding author. Email: zty444688231@163.com
Corresponding Author
Tianyi Zhang
Available Online 29 August 2024.
DOI
10.2991/978-94-6463-488-4_9How to use a DOI?
Keywords
Non-fungible tokens (NFT); Decentralized finance (DeFi); NFT liquidity; NFT financialization (NFTFi); Blend protocol
Abstract

Non-fungible tokens (NFTs) and decentralized finance (DeFi) have emerged as emerging technologies in the blockchain and crypto space, particularly influencing the art sector and driving the transformation of finance and art into the digital realm. However, the NFT market, after a short-lived boom, faces challenges such as high investment barriers, low capital efficiency, and difficulties in value discovery. To address NFT liquidity issues, leveraging DeFi technology to financialize NFTs (NFTFi) becomes an effective approach. This paper delves into four tracks of NFTFi, including NFT lending, derivatives, fractionalization, and leasing, and analyzes the design principles of the successful NFTFi protocol Blend. Through an analysis of NFT market and NFTFi platform data, the study reveals that NFTFi experienced a turning point in May 2023, especially with the notable success achieved through the Blend protocol. In summary, the openness of DeFi provides new avenues for addressing liquidity issues in the NFT space, enabling digital assets to better realize their value in the market.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 2024 2nd International Conference on Digital Economy and Management Science (CDEMS 2024)
Series
Advances in Economics, Business and Management Research
Publication Date
29 August 2024
ISBN
978-94-6463-488-4
ISSN
2352-5428
DOI
10.2991/978-94-6463-488-4_9How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Tianyi Zhang
PY  - 2024
DA  - 2024/08/29
TI  - Unleashing NFT Liquidity with DeFi Current State of NFTFi Translation
BT  - Proceedings of the 2024 2nd International Conference on Digital Economy and Management Science (CDEMS 2024)
PB  - Atlantis Press
SP  - 86
EP  - 92
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-488-4_9
DO  - 10.2991/978-94-6463-488-4_9
ID  - Zhang2024
ER  -