NFTX is a platform for creating liquid markets for illiquid Non-Fungible Tokens (NFTs).

Users deposit their NFT into an NFTX vault and mint a fungible ERC20 token (vToken) that represents a claim on a random asset from within the vault. vTokens can also be used to redeem a specific NFT from a vault.

Benefits include:

LP and stake minted vTokens to earn yield rewards
Better distribution and price discovery for NFT projects
Instantly sell any NFT by minting it as an ERC20 and swapping via Sushiswap
Increased liquidity for NFT investors and speculators

How does it work?

Vault Creation

Vaults can be created by anyone for any NFT asset on Ethereum. Once a vault has been created, any user can then deposit eligible NFTs into the vault to mint a fungible NFT-backed token referred to as an "vToken".

Minting vTokens

Anyone can deposit NFTs into an existing vault (or one they have created) in order to mint a fungible vToken that represents a 1:1 claim on a random NFT from within the vault.

Floor Prices

Users can then pool their minted vTokens in Automated Market Makers (AMMs) like Sushiswap to create a liquid market for other users to trade. With liquidity and trading volume established, the NFT-backed vToken enters into price discovery and a "floor price" is discovered.

The floor price denotes the lowest price for a particular NFT. Users establish a floor price by minting and selling vTokens in markets where they consider their NFT to be overvalued.

NFTX is helping to establish reliable floor price feeds for NFTs, enabling their wider application in decentralized finance on Ethereum.

Eligibilities

The Mask vault allows any Hashmask to be deposited, however other vaults use an eligibility list that only allows a specific sub-category of NFTs to be deposited. For example, the Kitty Gen 0 vault has an eligibility list that includes only Kitties whose metadata is Generation 0. Other Kitties can not be deposited into this vault.

Who Benefits From NFTX?

Collectors

NFTs in their basic form do not earn yield. However, when they are used to mint vTokens they can tap into the world of decentralized finance. Put simply, collectors can use NFTX to unlock more value from their NFTs:

Earn protocol fees
Earn trading fees as a liquidity provider
Farm with stablecoins using vTokens as loan collateral

Content Creators

By launching on the NFTX protocol, content creators are able to earn protocol fees in perpetuity whilst also improving the reach and fairness of distribution:

Earn protocol fees
Distribute NFTs via an AMM in the form of vTokens
Create instantly liquid markets for new content

Investors

NFTs are typically highly illiquid and difficult to price. NFTX makes speculating and investing in the NFT market a far simpler process:
Access the most liquid markets for NFTs
Track the price of particular categories of NFT

Punk Vault (NFTX) PUNK

Punk Vault (NFTX) Markets

Punk Vault (NFTX) Historical Markets