IDEAS home Printed from https://ideas.repec.org/h/spr/advbcp/978-94-6463-488-4_9.html

Unleashing NFT Liquidity with DeFi Current State of NFTFi Translation

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

Author

Listed:
  • Tianyi Zhang

    (Jilin University, College of Communication Engineering)

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.

Suggested Citation

  • Tianyi Zhang, 2024. "Unleashing NFT Liquidity with DeFi Current State of NFTFi Translation," Advances in Economics, Business and Management Research, in: Junfeng Liao & Hongbo Li & Edward H. K. Ng (ed.), Proceedings of the 2024 2nd International Conference on Digital Economy and Management Science (CDEMS 2024), pages 86-92, Springer.
    • Handle: RePEc:spr:advbcp:978-94-6463-488-4_9
    DOI: 10.2991/978-94-6463-488-4_9
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:advbcp:978-94-6463-488-4_9. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.