cryptocurrency

Pawnfi Introduces Non-Standard Asset Funding Platform on Flare . Network

Pawnfi is partnering with Flare Network, a new blockchain that aims to connect everything, to facilitate the use of non-standard assets (NSA) on Flare.

With Pawnfi, owners of illiquid items may get more value from their holdings than they could otherwise. NSAs can be either exchangeable or non-fungible hard-to-realize assets, such as NFTs, liquidity provider tokens, GameFi assets, or even simple swappable tokens for smaller projects.

Pawn (using the item as collateral for a loan), lease (renting the item to others for passive income), and sell (selling the item) are the three ways Pawnfi users can immediately use their assets (listing them in secondary markets for highest bid).

Since NFT collectors often have big money stuck in assets they would rather not sell, the Pawnfi liquidity model is very beneficial for them. Flare NFTs holders may use Pawnfi to obtain secured loans or earn interest on their property by lending.

A large portion of Pawnfi’s 280,000 active user community will join the Flare Network, expanding and improving the existing Flare NFT ecosystem. The goal of the project is to use the funding model developed by Pawnfi to increase Flare’s visibility in the DeFi community. Customers may invest in the Pawn protocol or enter into complex transactions with NSAs.

For the submitted assets, Pawnfi will create advanced fair valuation algorithms that can be used by other Flare network users to obtain accurate prices for NSAs.

Wesley Kayne, CEO and Founder of Pawnfi stated:

“Pawnfi will become a one stop destination as it can now provide a bridge to other metaverses. Users can achieve seamless cross-chain operations with their assets, leveraging Pawnfi Lending/Leasing/Sale as well as advanced liquidity modules to leverage their assets to retain financial advantage.”

Collaboration will increase cross-chain interoperability between different L1 systems and Metaverses. Flare’s LayerCake bridges are fully distributed and secured, allowing Pawnfi to introduce additional L1 DeFi chains, GameFi products, and NFT ecosystems.

Hugo Philion, CEO and co-founder of Flare Network stated:

“We are excited to see Pawnfi join the Flare ecosystem to benefit from our powerful interoperability solutions. By joining the Flare community, Pawnfi will be able to leverage virtually all major blockchains and assets, greatly enhancing its reach. Flare provides access to innovative Pawnfi solutions to unlock the use of less liquid assets.”

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