SNEAK PEEK
- Pawnfi collaborates with Flare to launch its NSAs on Flare Network.
- Assets placed on Pawnfi can be immediately used in three modes.
- Pawnfi will bring a significant amount of active users to Flare Network.
As per the official press release, it was recently revealed that Flare, a blockchain that enables secure global interoperability between chains, is in partnership with Pawnfi to enable the Non-Standard Assets (NSA) usage on Flare.
Flare is a new blockchain that uses the Ethereum Virtual Machine (EVM) to run Turing-complete smart contracts on the network. Finally, we talk about Pawnfi, the first Defi product to develop a lending and leasing market, which offers fair valuation, liquidity, and a use case for non-standard assets (NSA).
Pawnfi enables holders of certain types of illiquid assets to make use of them in a more efficient way than they could normally. NSAs can be any type of difficult to realize fungible or non-fungible asset, including NFTs, liquidity provider tokens, GameFi assets, or just fungible tokens for smaller projects.
Once these assets are placed on Pawnfi, then holders can quickly use them in three modes:
- Pawn (as security for loans)
- Lease (as a source of passive income from others)
- Sale (listing on secondary markets for the highest bid)
This Pawnfi liquidity model is particularly very significant and crucial for NFT collectors, who are likely to have significant sums of money locked up in assets they are unwilling to part with.
Using Pawnfi, Flare NFT holders can utilize them by taking out collateralized loans against them or by lending them out for yield.
The Pawnfi platform will bring a notable part of its 280k strong and active users community over the Flare Network, along with enhancing the current Flare NFT ecosystem.
The project’s main point of focus is to bolster Flare’s Defi presence and all thanks to Pawnfi’s financialization concept. Users will have access to supply funds for the Pawn protocol or make the latest and most advanced trades with NSAs.
Pawnfi will be using the modern fair appraisal system for the assets supplied, which other Flare network users can use to obtain accurate pricing for NSAs.
The collaboration will improve cross-chain compatibility between various L1 systems and Metaverses.
