THE NFC SWAP
In today’s article, we are going to detail a critical component of our new NFC platform. This innovative feature is known simply as NFT Swap and is the core of the Non-Fungible Cyborg platform. An unseen and revolutionary feature on the Cronos Chain, NFT Swap allows users to buy, sell, and trade NFTs instantly without waiting for a seller to match the buyer. By merging DeFi protocol into the NFT world through liquidity pools, we have completely changed the game on how NFT transactions can take place. Similar to UniSwap’s disruption of traditional CEX crypto trading with the launch of their DEX, we too are disrupting the traditional NFT space. Now let’s dive into the details!
The primary mechanic of NFT Swap is our NFT wrapping portal. This wrapping mechanism has been created in order to allow users to pair non-fungible assets with fungible assets to create liquidity pools. The liquidity pools then allow swaps to happen automatically. This new technology solves many problems caused by the non-fungible aspect of NFTs and opens the door to many new potential use cases. For example, making a non-fungible token fungible allows you to own a part of an expensive NFT like Bored Ape on ETH which has not been possible before as well as many other possibilities. As seen on the NFC roadmap, we have many other features planned and in development at Cyborg Corp. including NFT ETFs, NFT backed loans, and leverage and limit orders on NFTs.
To use the wrapping portal and participate in the NFT Swap is a simple process. Start by visiting the portal page at https://nfc.market/portals. Select the portal of the collection you would like to wrap, enable it, then click on “Sell My NFTs”. Select one of your NFTs to sell from your list, then enable and confirm. Your NFT will now be staked in the portal contract for that collection and you will receive 1 wrapped token of that NFT collection in your wallet. You can use this wrapped token anytime to claim 1 NFT in the same collection portal from those available. It’s very important to remember that the wrapped token can redeem any NFT in the collection portal, but it’s possible that the NFT you originally deposited has been claimed/swapped by another user and you’ll have to select a different available NFT. Please also note that you need 1 entire wrapped token to claim 1 NFT. You won’t be able to claim if you only have 0.999 or less of a wrapped token in your wallet. There will always be as many NFTs in the portal as there are wrapped tokens of the collection in circulation.
Additionally, there are other features that users can take part in with their wrapped tokens. For example, you may use a wrapped token to provide liquidity in our farms and earn $NFC tokens. The NFT farms works exactly like any other traditional Defi farms, so do be aware of the risk of impermanent loss before you provide liquidity (here is a link to a great article explaining the concept of impermanent loss by Nate Hindman). Providing liquidity is the key to Defi and that is what allows users to swap NFTs on the NFC platform, thus we have allocated most of the NFC emissions for rewards in the NFT farms. Now that we’ve covered the mechanisms of the NFT portal, let’s see what more can be done.
First up for review is buying an NFT on the NFC Market.
To buy an NFT, you must first get a wrapped NFT (wNFT) from the collection you want. You can get it on the Trade tab here: https://nfc.market/swap using your $NFC, $CRO, or $USDC. The price of one wNFT is determined by the liquidity pool and is quite different from the traditional floor pricing used on marketplaces.
Every NFT in the collection portal has the same value regardless of rank or rarity and this is fixed by the Automatic Market Maker (AMM). To fully understand the mechanisms of an AMM we recommend reading this great article by Satvik Agnihotri or watching this excellent video by Cryptomatics. It’s important to understand that in our portals and swap, the rarity and ranking of your NFT don’t matter. All NFTs listed in the same collection portal will have the same market price according to the AMM.
Once you have your wNFT token, you can exchange it on the portal page for any NFT listed in the collection portal. In each portal there will always be the same number of NFTs and wrapped NFTs so you’ll always be able to trade your wNFT, no matter what. Note that the value of your wNFT (determined by the AMM) will fluctuate due to supply and demand like any other crypto asset. However, thanks to the AMM, NFC is not centralized like traditional marketplaces such as OpenSea. Thus, you don’t have to pay any royalties or platform fees (except gas fees in $CRO and $NFC).
Secondly, let’s cover Selling an NFT on the NFC Market.
Few things are easier than selling an NFT on the NFC Market. Go to the portal page, enable the portal, and click on “Sell My NFTs”. Choose which of your NFTs from that collection you would like to sell, then enable and confirm. Your NFT will be instantly sold and you’ll receive a wNFT from that collection in your wallet. You can then choose to trade your wNFT for $NFC, $CRO, or $USDC at market price, keep in your wallet to speculate, or stake in a dedicated pool to earn $NFC tokens. Additionally, you could wait for another nice NFT from that collection to be listed and claim it with your wNFT and then use it to farm in the NFT staking pools for juicy $NFC rewards. Keep in mind that even though you won’t have to pay royalties or platform fees on the market price of your NFT, you will need to evaluate the price impact of the liquidity pools which can be high if there is low liquidity. One last note, you can only sell NFTs from collections that have a portal open on NFC Market. If your favorite collection isn’t listed, be sure to ask us if it’s coming soon or ask that project’s team if they’re interested in getting listed!
Lastly, let’s cover Swapping an NFT on NFC Market.
Swapping is one of our innovative features on the NFC platform and is the first NFT Swap on Cronos! This feature allows you to swap one NFT from a collection with another NFT from the same collection as long as they have a portal available on NFC. Simply choose among the listed NFTs you want in the collection portal, enable it, then click on “Swap my NFTs”. Select from your personal collection which NFT you want to trade, then one from the portal, enable and confirm. That’s it! You’ve now traded your NFT for a new one and only had to pay gas fees in $CRO and $NFC! This could be a good way to upgrade your NFT collections so remember to check new listings in your favorite portals regularly! Also, remember that all NFTs in the portal have the same value so it is possible to swap a low rank NFT for a higher or even top tier rank NFT if it’s listed in the portal.
We’ve covered a lot of info today, Cyborgs, but we hope that this helps you navigate these awesome new features and feel more comfortable using them. Buying, selling, swapping, and farming with NFTs are just the beginnings of what we have planned for innovative NFT features. The NFC platform will bring more utility and technology to the NFT space than ever before. As always if you have questions on how to use the platform or would like to discuss potential partnerships, contact us in our discord and telegram channels. We’re happy to help! See you again soon for another article!