Everything can be NFT, what if DEX meets NFT?
‘April hath put a spirit of youth in everything.’ — William Shakespeare
April 2021 is probably the most beautiful April day that cryptocurrency practitioners have ever seen — with Bitcoin hitting $60,000 and DeFi’s locked position approaching $100 billion, it is safe to say that the entire cryptocurrency market is warm and hopeful all the way to the top. The entire cryptocurrency market has been warm and hopeful.
Not only that, the NFT craze is surging, as the new wave of cryptocurrency after DeFi, NFT has seen explosive growth in 2021, and the total market cap even exceeded $30 billion in mid-April, hitting a record high. There is no doubt that exchanges have extended their tentacles into this field, such as Coinbase’s low-key announcement to enter NFT after its successful landing on NASDAQ, and OKEx eco-project KSwap’s recent successful launch to start exploring more possibilities of the DEX+NFT model.
For now, there are still some shortcomings of centralized exchanges in the NFT field, such as the limitation of token exchange function cannot meet the diversified needs of users, and the number of exchanges supporting efficient cross-chain multi-chain services is not much, etc. As a result, it is also obvious that the convenience of NFT transactions is constrained; in addition, due to the high gas fee on the Ethernet chain, users often need to pay more fees and wait for longer confirmation time when conducting NFT transactions on centralized exchanges. Users often need to pay more fees and wait for longer confirmation time when making NFT transactions on centralized exchanges.
In view of this, some crypto ecosystem projects using public chains have already started to explore the solutions to the pain points of the NFT industry.
What can the public chain ecosystem bring to NFT?
Recently, I believe many practitioners in the NFT field have often heard the phrase: “Everything can be NFT”. Indeed, as NFT starts to lead the cryptocurrency industry to be widely known, we found that crypto applications can actually be introduced into the physical world and combined with real-world scenarios, and NFT has become a logical entry point for blockchain applications to connect with the real world. The problem is that although “everything can be NFT”, but “everything needs to be tradable” — there is value in trading and no value in no trading, the current NFT market application scenario still has a large Limitations, for example, we can only see NFT in a few traditional industry sectors such as games, art collection, “out of the circle” range is not as large as imagined.
From this viewpoint, public chain ecosystem — especially exchange-based public chains seem to be effective in solving this industry pain point, while exchange-based public chain eco-projects are also maximizing NFT innovation.
Frankly speaking, the development of the public chain ecosystem of the “Big Three” has been fast in recent times, for example, the Binance smart chain has lowered the threshold for developers to use and attracted many NFT projects to the chain, but the crypto community thinks that Binance seems to be “copying and pasting” the NFT on Ether to a large extent. However, the crypto community thinks that Binance seems to be “copying and pasting” the NFT on Ether to a large extent, which leads to unsatisfactory reputation in the industry; the Huobi Heco eco-chain improves financial stability and throughput capacity while being safe, and has already launched several NFT projects, which have also gained a more optimistic locking volume; OKExChain of OKEx is positioned as a “decentralized high-performance transaction public chain”. OKExChain itself is positioned as a “decentralized high-performance trading public chain” and focuses on enabling NFT for decentralized exchanges, which not only effectively implements crypto-related business applications, but also ensures the security of decentralized transactions while meeting the needs of different application scenarios such as NFT, etc. KSwap, an eco-project based on OKExChain, has become the first exchange to introduce NFT innovation. KSwap, an eco-project based on OKExChain, has become the first exchange to introduce NFT innovation to the public chain DEX, and their exclusive NFT has given DEX many new ways to play.
What can NFT bring to the public chain ecosystem?
When you read this, you may have such a question: It seems that the public chain ecosystem has been trying to help NFT get rid of the shackles, solve the problems of NFT industry, and promote the development of NFT empowerment, as if the public chain ecosystem is always “paying” after meeting NFT. Can’t NFT bring some “benefits” to the public chain ecosystem?
Of course not.
In fact, NFT may bring more “benefits” to the public chain ecosystem than many people think. The cryptocurrency market never lacks opportunities, but rather the eyes to find them. Whoever can discover the “benefits” brought by NFT first will have a head start in the market competition — as the most important part of the public chain ecosystem, DEX is using NFT to explore more possibilities.
KSwap, for an example, a decentralized exchange based on OKExChain, has recently found a new way to play with NFT and will soon launch a mystery box airdrop for NFT testing. As we know, NFTs on “traditional” DEX usually have two main attributes: collectability and gaming, meaning that NFTs on these trading platforms have collectability and holding value, KSwap uses a mystery box to issue a limited number of 20,000 KUniverse NFTs which, in addition to these basic attributes, also give real In addition to these basic attributes, the 20,000 KUniverse NFTs issued in a secret box also have real economic value because NFT holders can participate in a series of activities such as receiving rewards from the fixed bonus pool of KSwap’s transaction fees, project IPO, sharing platform’s income, and platform governance based on their own weights, thus further expanding the NFT application scenarios.
Some people may ask, these “economic values” of KUniverse NFT seem similar to platform tokens, but they are not. Platform tokens are issued by cryptocurrency exchanges and circulated within the trading platform, and their application scenarios are mostly within the exchange, so they can be considered as liabilities of the exchange. KUniverse NFT holders are equivalent to “shareholders” of the trading platform, who can not only participate in the community to build the KSwap ecosystem, but also share the fruits of the platform’s development and realize truly decentralized governance.
KUniverse is releasing 20,000 mystery boxes, each of which opens a different card at random, and any participant who submits bugs and suggestions during the KSwap beta test and participates in the KSwap public beta bonus will receive a mystery box.
Once the secret box is opened, you will receive a KUniverse NFT card. The contents of the cards are divided into seven levels of “1–7” based on the current observable universe, and the total number of cards for each level and the corresponding arithmetic values are as follows.
If you are lucky enough to get your hands on a card with a high rarity, congratulations! The potential economic value of these cards will be considerable. It is also worth mentioning that all secret box and Celestial cards can be traded directly through the marketplace built into the KUniverse system and are priced in KST, and cards placed in the marketplace in the future can be modified and unsold.
As mentioned earlier, the biggest difference between KUniverse NFT and other “traditional” NFT is that it has not only a collector’s and holder’s value, but also an economic value, a unique feature that is reflected by allowing NFT holders to participate in the platform’s dividends of transaction fees to create a bonus pool. Prior to the start of each bonus period, NFT holders can stake their cards, and the total amount of staked hashrate is the user’s hashrate value, and KSwap will distribute bonus rewards to each NFT holder in proportion to the hashrate value weight.
If you want to stake a card for trading, you can go to the “Pledging” page and take out the card. (Note: Currently, the maximum number of cards that can be staked and unstaked is 10).
As a start-up, the NFT trading weight may be maintained at 5–20% at this stage, as DEX KSwap will still focus on the main service functions in trading and providing liquidity, but this innovative NFT economic value empowerment mechanism is bound to “feed back” DEX users.
On the other hand, the top cryptocurrency exchanges, including the “Big Three”, have a large number of users who participate in trading every day. For example, OKEx has more than 20 million users in 200 countries and regions, and such a large number of users can easily be converted to KSwap, which will eventually drive the number of NFT trading users on KSwap platform to grow further.
For the public chain ecosystem, DEX is usually a strategic link. According to the data of KSwap test network, the trading volume of its test network has already reached USD 670 billion. Although this figure does not represent the actual situation of the main network launch at a later stage, it reflects the great interest of users in the innovative model of “DEX+NFT”. In general, retail investors tend to by their own understanding of the industry and ideas and are also more receptive to innovative thinking. Therefore, they are more likely to choose to try to make transactions on DEX. From the example of KSwap, we can see that NFT can bring fresh blood to public chain eco-projects — such as DEX based on exchange public chains — and is more likely to attract It is also easier to attract users from outside the “circle” and the “ecosystem”, which will ultimately achieve a win-win situation for both parties.
Summary
As the cryptocurrency infrastructure, such as DEX, based on the exchange’s public chain, continues to improve, many new ideas and projects related to NFT will be accelerated. these innovative explorations by KSwap in the NFT space are just the beginning, and although they are currently in the early stages of development, they may have a very profound impact on the NFT ecosystem with the support of the OKExChain ecosystem, and This profound impact will continue to be felt. There is no doubt that the NFT world is dynamic, has great potential, and is already poised to become mainstream through revolutionary disruption.
When DEX, an exchange-based public chain, meets NFT, will there be more possibilities? Let’s just wait and see.
