Pawnfi and Flare Network, a new blockchain that aspires to link everything, are working together to enable Non-Standard Assets (NSA) to be used on Flare. Pawnfi gives owners of different kinds of illiquid assets the ability to make better use of those assets than they would be able to under regular circumstances. NSAs can take the form of any type of fungible or non-fungible asset that is difficult to actualize, such as non-fungible tokens (NFTs), liquidity provider tokens (LPTs), GameFi assets, or even just fungible tokens for projects that are less ambitious.
By putting these assets up for sale on Pawnfi, their owners instantly gain access to three different ways of monetizing them: pawning (using the goods as security for loans), leasing (lending the assets to other people in exchange for passive income), and selling (listing on secondary markets for the highest bid). The Pawnfi liquidity model is particularly useful for NFT collectors since NFT collectors frequently have significant sums of capital tied up in assets that they are unwilling to part with. With Pawnfi, holders of Flare NFTs can convert their assets into collateralized loans or yield-generating loans.
According to Hugo Philion, CEO and co-founder of Flare Network, “We are glad to see Pawnfi joining the Flare ecosystem to make use of our powerful interoperability solutions. By joining the Flare community, Pawnfi will be able to tap into virtually all major blockchains and assets, dramatically boosting their reach. Meanwhile, Flare users gain access to Pawnfi’s innovative solutions for unlocking usage of less liquid assets.”
Boosting Flare’s DeFi Presence With Pawnfi
In addition to augmenting the existing Flare NFT ecosystem, Pawnfi will bring a major portion of its 280k-strong active user base to the Flare network. Using Pawnfi’s financialization paradigm, the project also intends to enhance Flare’s DeFi footprint. Users have the option of contributing capital to the Pawn protocol or engaging in more sophisticated deals with NSAs. Pawnfi will create sophisticated fair assessment methods for the assets that are delivered. These systems will be available for use by other Flare network members in order to obtain accurate pricing of NSAs.
The agreement will bolster cross-chain interoperability between multiple L1 systems and Metaverses. Pawnfi will have the ability to onboard a greater number of L1 DeFi chains, GameFi products, and NFT ecosystems as a result of Flare’s decentralized and fully-insured LayerCake bridges. Pawnfi aspires to become a one-stop shop because it can now serve as a gateway to other Metaverses. Users can achieve smooth cross-chain activities with their assets and employ Pawnfi’s lend/rent/sell and advanced liquidity modules to derive financial benefits from their assets.
Connecting A Powerful Blockchain With Unique DeFi Product
Flare is a groundbreaking new blockchain that features the world’s first consensus algorithm designed specifically for external data. Flare enables decentralized applications to obtain and use information from other blockchains in a secure and trustless manner, which opens the door to a new era of utility. This new age of utility includes decentralized and insured multilateral bridging, full cross-chain composability in which assets and information can move freely among all chains, decentralized incorporation of real-world data in Web3 decentralized applications, and a robust, fully-interoperable multichain solution.
In the meantime, Pawnfi.com is the first DeFi platform to establish a loan and leasing market that provides a fair valuation, liquidity, and use cases for Non-Standard Assets (NSA). Pawnfi permits the sale of Non-standard Assets’ ownership, use rights, and earning rights. Holders of NFT, GameFi, and liquidity pool tokens (and others) can borrow against or lease their illiquid tokens for immediate use.
