APYSwap, the DeFi protocol best known for tokenized vaults, has announced a new feature which will see the company make a splash in the liquid-heavy NFT market. The company proposes a model of shared NFT ownership which will allow multiple people to each own a piece of a single NFT.
The New Feature
According to APYSwap the traditional artworld served as a major source of inspiration for the firm, as fractional ownership has already been tried and tested in the sector. Now APYSwap wants to update the process, making the switch to the NFT art market on the Binance Smart Chain (BSC). To expedite the process APYSwap required a bridge from the Opensea NFT marketplace, which they implemented with help from First NFT Agency. This allowed APYSwap to transfer two NFTs from the ETH ecosystem on OpenSea into one of their vaults on BSC.
Shared Vault and How Things Work
As part of the process which APYSwap proposes, NFTs from OpenSea are wrapped and placed in a vault on their platform. Token holders can then claim a share of the NFT being held, before the NFT is sold on the APYSwap NFT market. The funds raised from the sale of the NFT are then exchanged to the vault. From here, owners of the fractional shares can claim the corresponding fractional share of the assets in the vault. In this way the fractional share of the NFT becomes a fractional share of a money vault. After this process, the owner of the wrapped NFT can use the bridge from First NFT Agency to transfer the artwork back to OpenSea if they so choose. The vault and bridge concept is designed to bring greater levels of NFT participation to the Binance Smart Chain.
As APYSwap stated on their medium:
“Our marketplace will occupy quite a unique niche on BSC network, akin to OpenSea, making us pioneers in this area. This also has the potential to open up the massive NFT market to the BSC network, utilizing our bridge solution.”
APYSwap is a unique exchange that allows users to swap shares of tokenized vaults. By allowing users to trade shares of vaults, APYSwap circumvents high fees on Ethereum and optimizes yields for its investors. Users are able to make passive income automatically, or actively manage their portfolio to maximise their returns on the exchange.
Source : bsc.news
Founded in 2020, BSCNews is the leading media platform covering decentralized finance (DeFi) on the Binance Smart Chain (BSC). We cover a wide range of blockchain news revolving mainly around the DeFi sector of the crypto markets. BSCNews aims to inform, educate and share information with the global investment community through our website, social media, newsletters, podcasts, research, and live ask me anything (AMA). Our content reaches hundreds of thousands of global investors who are active in the BSC DeFi space.