The future is here, at least for combining NFTs and DeFi in the blockchain. By now, everyone has heard about both NFTs and DeFi. Both of these crypto trends have had a profound impact on crypto markets in 2021 and look to significantly add to the investment potential of the crypto universe.
Just as other innovative cryptoassets have experimented and combined to create even greater value, the two worlds of the NFT and DeFi are now beginning to open even greater financial opportunities for the average investor. This quick article introduces the concept of the combined NFT DeFi project and provides an early example of one of those projects. After reading the article, will you want to research this opportunity? Then look for more articles on this exciting trend on LCXwire.com.
The NFT and Defi Background
NFTs and DeFi are two of the most important investment trends of 2022. While non-fungible tokens (NFTs) have ushered in a whole new digital marketplace for art investors, decentralized finance (DeFi) has opened a whole new world for investors to use currencies without the constraints of traditional currencies.
While NFTs have gotten a lot of attention for their unusual approach to digital collecting—investors may now purchase exclusive one-off works of art from their favorite artists digitally—cryptocurrency has empowered those who live in nations where banks have complete control over transactions. It’s only natural that the two would merge in the future to further destabilize the fast-changing financial landscape.
The huge array of capability that NFTs hold is unstoppable. Gifs of sports memorabilia, images of renowned visual artists, and photos of Shiba Inus are all examples of the new digital valuables. Famous artist Max Denison-live Pender’s painting was thrown into a volcano shortly after its photo was taken, and Beeple’s artwork sold for $69 million. The DogeCoin meme, which just this week soared in value from $4 million to $220 million in the space of one day after the meme was split into 17 billion pieces, was also a notable NFT of 2021.
Banks collect loans to account holders in most cases. DeFi employs code to secure a contract, allowing borrowers to borrow at significantly cheaper rates and depositors to get more value for the money. This is conceivable because the bank, as a middleman, is removed from the equation.
The DeFi industry has risen at an exponential rate over the last year, and it appears that it will continue to develop steadily in the years ahead. With the rise of meme coins, stable coins, and altcoins, tokens are displacing traditional financial instruments.
The DeFi and NFT sectors, like other young industries, are continuously evolving. As a result, it’s no wonder that the two would inevitably unite.
“As NFTs re-imagined how we produce and define ownership of digital content online, we’ll also, in turn, begin to re-imagine a whole new category of financial services based on these new building blocks,” Lasse Clausen, a partner at the venture firm 1kx, said in a press release.
How Combining NFTs and DeFi Are the future of DeFi
Although NFTs are a valuable asset, DeFi may capitalize on them by using alternative platforms. A lender can use DeFi to determine the value of the NFT’s collateral. Unlike traditional banks, which determine the amount of collateral, DeFi platform enables the lender to do so. Once the owner has decided on a price, market value, and computations, the loan is dispersed.
LCX Launches a NFT DeFi Project in February 2022
LCX launched their Tiamonds, which are tokenized diamonds on the Ethereum blockchain, in February, 2022. To learn more about Tiamonds click here. The token is a 1-1 digital representative of the individual diamond. Tiamonds has been developed as a non-fungible token with the ERC-721 token standard in combination with features known from the Liechtenstein Protocol.
Each Tiamond is described with its key characteristics in the 4 C’s: cut, color, clarity, and carat. Furthermore, each Tiamond includes an LCX Physical Validator Certificate and a diamond certificate from GIA. LCX has brought together the most precious stone, the diamond, and the crypto industry. The objective is to easily add diamonds to your investment portfolio.
The Tiamonds NFT was developed because of the recent growth in DeFi technology. Now you must be thinking how Tiamonds are related to DeFi technology. The relationship is a occurs because with every Tiamond the owner will get $TIA Tokens, which is a community first and fair launched DeFi Token.
The DeFi NFT Coin of Tiamonds
Each Tiamonds (of the first generation of Tiamonds) grants the owner the right to receive 1 million TIA Tokens, where 1 TIA Token will be rewarded every minute for 1 million minutes. There are 525,600 minutes per year, so 1 Million minutes is almost 2 years. So that’s how the Tiamonds project is said to be the most popular example of the combination of NFT and DeFi.