Three Emerging NFT Platforms That Offer Yield Earning Programs
25 January 2022 - 3:27AM
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Non-Fungible Tokens (NFTs) have taken over the web3 space. Their
popularity is second to none, as web3 enthusiasts have created an
industry that has taken the world by storm. Use-cases have shifted
from purely digital art marketplaces to certificates and even yield
earnings. Digital art still dominates NFT uses. That will change.
The Decentralized Finance (DeFi) space has figured out that NFTs
have many product use-cases within the industry. NFTs get used as
assets on several DeFi platforms. Before now, fungible tokens,
stablecoins, and other digital assets reigned supreme. The entrée
of NFTs has changed the game because of their unique nature. Here
are a few yield-earning NFT platforms that will rock 2022 and
beyond. Drops Offers Permissionless NFT Lending Pools And More
Recently launched NFT lending pool Drops has taken things up a
notch and created permissionless lending pools. The basic idea
behind Drops is to allow DeFi token and NFT holders to gain access
to liquidity rather than for NFTs to sit idly in user wallets.
Different NFTs used for collateral range from collectibles, gaming
NFTs to financial NFTs. The NFT space goes through illiquid phases
because of sales pressure. It has led to bubble-like behavior in
the NFT space that occurs periodically. As a result, many users get
stuck with their NFTs without selling them at their desired
timelines. Drops provides a way out for collectible and financial
NFT owners by giving them access to permissionless yield pools
where they offer their NFTs as collateral. The great thing about
this feature is there is no approval process required for getting
access to the loans. The Drop token (DOP) enables governance within
the Drop’s Decentralized Autonomous Organization (DAO). Access to
the pool yields occurs once users connect to the DApp. Izumi
Finance Solves Issues With Uniswap’s V3 Finance NFTs Izumi Finance,
the multi-protocol programmable liquidity finance “Liquidity as a
Service” (LaaS) platform, enables DeFi users to deposit their
Uniswap LP NFTs on the Izumi protocol. The Izumi Finance ecosystem
enables liquidity mining from different chains and increases yield
optimization. It allows users to increase the returns on their LP
NFTs efficiently while allowing users the flexibility of earning on
Uniswap v3. As the first protocol that supports Uniswap V3, Izumi
Finance has taken the bull by the horns and created a new paradigm
of operations for liquidity mining in the DeFi space. Izumi Finance
deploys the use of its iZi tokens to improve marketplace
efficiency. By connecting providers (DeFi projects) with liquidity
providers, Izumi Finance enables an environment where the ordered
distribution of yields is available to liquidity providers. This
approach, for LP NFTs, has raised the bar and created a new
perspective on liquidity mining. Izumi Finance takes things to a
whole new level and solves the problem of impermanent loss. Uniswap
V3 Allows Users to Stake LP NFTs Uniswap V3 launched last year, but
with a twist. Rather than allow users to deploy their DeFi tokens
to gain yields, LP NFTs get minted, and yields get earned on each
minted NFT. Users deploy the LP NFTs to access pools available
within the Uniswap V3 D’App. Although Uniswap V2 is still
available, users piqued by the idea of having a yield-generating
financial NFT have flocked to the platform and staked their Uniswap
LP NFTs. As the cryptocurrency space increases in value and prices
of Smart Contract capable blockchains like Ethereum rise, yields
shall improve with efficient models gaining ground. Will
Yield-Earning NFTs Gain Adoption in 2022 and Beyond? With a renewed
interest in financial NFTs, many DeFi users wonder if yield-earning
NFTs will become popular. Skeptics think these kinds of financial
NFTs are complicated and present many problems. Because of the
unique nature of NFTs, the DeFi space will see new NFT platforms
that offer yield generation at fair or even increased rates. The
rarity of each NFT determines the value generated and the potential
yields. It shall become another niche product that produces higher
yields as each unique circumstance governing every minted NFT
determines the outcome yield-wise. The new products made possible
by these platforms will spur further adoption of web3 technologies.
It is one more plus for the industry. Image: Source
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