Reported By: Bitcoinist.com
Capitalizing on blockchain technology, Unicly is deploying a novel protocol to fractionalize and pool liquidity for NFTs, allowing users to own portions of collections and resell them as fungible tokens.
A New Means To Combine And Split NFT Collections
Interest in NFTs has skyrocketed over the last few months, increasing the overall NFT market capitalization to more than $430 million. Several renowned personalities, including artists, performers, and content creators, are embracing this new way of monetizing their creations, collectibles, and artworks.
Although non-fungible token auctions have surpassed seven-figure bids, it isn’t accessible to a larger audience due to the rising costs of ownership. NFTs come in several different forms and representations with different values and varied demand levels, making it complicated to match buyers and sellers. Also, the fact that there can only be one of each NFT makes it considerably less liquid than fungible tokens.
To overcome the drawbacks and make non-fungible tokens easily accessible for all, 0xLeia, the pseudonymous founder behind Unicly, has developed a unique protocol to combine, fractionalize, and trade NFTs with guaranteed liquidity.
Unicly Redefines Ownership of NFTs
Unicly’s self-funded project implements sharding, a method of splitting large tables into smaller bits (shards) to ensure different sections of the current blockchain network. This methodology improves transaction speeds and adds scalability, allowing users to own portions of any set of NFTs and sell this fractional ownership as fungible tokens.
Unicly is an open, decentralized, and community-governed platform where NFTs meet DeFi. The platform’s new protocol enables the sharding of collections containing multiple NFTs using Ethereum ERC-721 and ERC-1155 standards. Every non-fungible token within a sharded collection will be treated as equal, unique, and irreplaceable items.
Anyone with NFTs can create their uToken, representing a collection or bundle of NFTs. After the respective NFTs are deposited and locked into the smart contract, the owner of the uToken adds liquidity and the percentage of uTokens needed to unlock the NFTs. Once the preset percentage value is met, the NFTs are opened for bidding.
Solving The Significant NFT Liquidity Problem
Real-time market liquidity is one of the biggest problems surrounding the NFT ecosystem. Unicly’s novel protocol, built on top of previous attempts at fractionalized NFTs, delivers the long-awaited solution. Unicswap, its unique AMM DEX version of the famous Uniswap protocol, will allow users to create their uToken collection, assign liquidity to the uTokens, and mine UNIC tokens through the UnicFarm liquidity pooling.
Since Unicly launched its mainnet a few days ago, the platform has become a hot topic in the blockchain ecosystem. Recent figures indicate that Unicly has already attracted $3.5 million liquidity for whitelisted pools in just four days.
Additionally, the 24-hour volume of more than a million dollars places Unicly in direct competition with platforms like SuperRare, Rarible, and KnownOrigin. Since passing a major milestone in just days, Unicly’s overall capitalization of NFTs listed on its platform has now exceeded $20 million.
Backed by other major non-fungible token projects such as Animoca, Aavegotchi, and Sandbox, Unicly solves the liquidity problem of matching individual buyers and sellers by allowing uToken holders to vote and decide if they want to sell an NFT.
The proceeds from the sale are then shared equally among all uToken holders. It eliminates incentives for NFT collections to depreciate through selective inventory churning while rewarding the best NFT collections through whitelisting, allowing the liquidity pool to mine the UNIC governance token.
With this potential in mind, several globally acclaimed collections have already joined the platform. Collections like uMask experienced rapid growth after NFTs were listed on the platform. Following an initial figure of $1 million, this collection of 85 Hashmasks saw its value rise 16-fold.
Other popular brands and personalities already associated with Unicly include the award-winning national geographic photographer Chris McCann, who exhibits his uCM collection, and collections from DokiDoki, MoonCats, WAIFU, and the Nubians.
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