What Makes NFTs Game-Changers Of The DeFi Space? The CEO Of Sphynx Network Explains

But what makes NFTs so attractive for people outside the crypto and DeFi space? Why are play-to-earn games picking up steam? Is there any way to make NFTs more accessible for the average user? We talked to Madalin Muraretiu, CEO of Sphynx Network, to find out what awaits NFTs. The main goal of Sphynx Network is to use the full potential of NFTs in DeFi. Sphynx Network offers multiple solutions, such as an NFT fractional ownership marketplace and a blockchain-based play-to-earn NFT game.

Blockster: The most obvious but important question. Why did you choose NFT staking as the main feature to offer? How did you come to this idea?

Madalin Muraretiu: NFTs have been the hottest topic in the crypto space since the summer of 2020 when DeFi projects went mainstream. DeFi was here to stay, so we thought about the marriage between these two, and this is how the idea of NFT staking came to life. NFTs may be deployed wherever DeFi is accessible, from gaming and fine arts to digital identification, licensing, and insurance. NFT is an extra fuel source that contributes to the DeFi machine’s innovation. It is critical to grasp the ideas presented here. NFTs are one-of-a-kind assets or items for purchase/sale. DeFi is a collection of technologies that enable the realization of these assets. DeFi capitalizes on this by introducing NFTs to more lucrative decentralized marketplaces and boosting their liquidity. As a result, NFTs become an ideal complement to DeFi technologies, expanding the range of possible use cases, one of them being NFT staking.

Blockster: Given the existence of such giants as OpenSea, what makes you a revolutionary or game-changer in this area?

Madalin Muraretiu: Given that we’re discussing OpenSea, I’m assuming we’re referring to our NFT marketplace. Apart from the area where users can purchase and trade various NFTs, they may also clone and breed Sphynxies, the characters in the NFT’s blockchain-based game.

Sphynx Network will establish a secondary market for previously staked tokens, and after users are done staking, they can simply go to the marketplace and sell their NFT since all their information will be stored there. Additionally, users can break down the NFT into smaller pieces. They may unstake the NFT using the same procedure as they would with a normal LP. The NFT will not be burnt during this process but will be emptied, and the staked funds, together with any accrued and unredeemed rewards, will be transferred to them, or if they don’t want to sell the entire NFT, they can simply sell a percentage of it and keep the remaining. The value of the NFT will be adjusted, and a new NFT will be minted for the buyer or added to their NFT if they already have one!

Blockster: Do you consider fractionalizing NFT as a means to make NFT space a more democratic place for those who are interested in it? How is fractionalizing technically possible?

Madalin Muraretiu: Fractionalization will make it simple to purchase and own a percentage of an NFT. This enables people who were previously unable to acquire a piece of work from specific NFTs or artists (such as Beeple) to do so. Additionally, fractionalizing an NFT enables the asset’s original custodian to enjoy some liquidity without selling the whole piece.

When userscome toSphynx NetworkasNFT owners, theywill be able to mint an NFT Vault. This vault will store theirNFTin return for 100% ownership of the fractional ownership tokens. Now, the NFT owners arefree to do anything they want with their fractions. They may, for example, sell them to the marketplace, provide liquidity, or just gift them to theirfriends. Fraction owners retain collective ownership of the NFT that has been locked up. If a buyer arises, they may transfer BNBequal to or more than the asset’s reserve price. This starts the auction process. After the auction concludes, the winning bidder will get the NFT, and fraction owners will be able to claim their BNB.

Blockster: Why exactly were sphinxes chosen for your NFT concept?

Madalin Muraretiu: I am a sphynx cat owner, hence the reason our token is called that way, and despite that, there were too many dogs out there already, we are establishing the balance. I took advantage of the meme trend and gave it a few use cases to avoid the stigma of a shitcoin.

Blockster: What do you think caused the boom in NFT in 2021 among celebrities and artists?

Madalin Muraretiu: The point is that despite other cryptocurrencies such as Bitcoin or Ethereum, NFTs are not fungible. They may include digital art, music, memes, and tweets, as well as any other kind of material that can be tokenized, which sparked a frenzy of interest among artists, celebrities, and other prominent people early this year during the cryptocurrency bull run. With mogul Mark Cuban selling NFT copies of his Twitter postsfor about $1,000 each and Lindsay Lohan hawking Bitcoin to her followers on Twitter, it was only a matter of time until the celeb elites embraced the NFT party. Celebrities may sell almost everything to their followers as collectibles: costumes from global tours, exclusive merchandise, trophies, accessories, plushies, and signatures (can be digital as well). Converting celebrity collections to NFTs vests the possessor with ownership of the tokenized goods.

Blockster: Play-to-earn games often get criticized because of their nature. What is your attitude towards it?

Madalin Muraretiu: Play-to-earn is the key to mass acceptance of NFT. The blockchain and nonfungible token (NFT) technologies have been used in games since 2017. The entire concept is inspirational, attracting both fans and investors. But the business is still young and has a long way to go before it becomes mainstream.

Video games have the ability to take NFTs and make them a significant part of their economy, giving players more power since their purchases will be “owned.” These NFTs may be resold on secondary marketplaces, loaned out, and transferred outside of the game, making them a real-world asset. Devsmay be even more inventive,anditems may be fractionalized, pooled into an index fund, shared between games, developed when exchanged, and more.

The fact that many contemporary blockchain games are being developed and marketed as blockchain games rather than excellent games using blockchain as an element is a major flaw. Companies concentrate on ownability, tradeability, and money-making, combining fundamental gaming principles with Unity Asset Store or pixel artwork aesthetics. Those looking to make money may be drawn to it, but many players quickly return to their favorites.

Blockster: Yield farming is also one of the main focuses of your team. What do you attribute to the growing popularity of this activity among crypto enthusiasts?

Madalin Muraretiu: Yield farming is DeFi’s Rocket Fuel!

The 2020 DeFi summer was all about yield farming. In 2021, the overall amount locked in liquidity pools hasreached new highs.

In the conventional financial system, participants depend on banks, brokerages, and other financial institutions. Centralized entities also control the whole financial system. These problems slow down and increase transaction costs, causing frustration among financial system participants.

Yield farming is the process of staking or lending cryptocurrency for high returns in the form of more cryptocurrency. Liquidity mining is an innovative but hazardous and unpredictable use of decentralized finance (DeFi). The DeFi sector’s development is presently driven by yield farming.

For the digital era, Decentralized Finance is a transparent and open financial system that offers you authority over your money. Its users own and manage it. DeFi products are accessible to anybody with internet access. DeFi apps have already processed tens of billions of dollars in crypto, and that number continues to rise. Take any financial service you use today and make it global and available to anybody with a smartphone and internet access. It is derived from the centralized middleman-focused historical system.

Blockster: Your merch is still in progress. Can you open the veil on what objects will admirers of your work find the image of their favorite sphinxes on?

Madalin Muraretiu: The merch area will include a capsule collection of clothing, t-shirts, hoodies, and hats, some of which will be collaborations with well-known designers. Additionally, mugs and other items will be branded with the Sphynx Network. Contests will be organized for holders who want to have their own signature on various items, such as a t-shirt; the best design wins.

Blockster: Why did you choose EtherAuthority for the audit?

Madalin Muraretiu: The contract audit was conducted by EtherAuthority, a reputable and esteemedaudit companythat has been assisting blockchain companies in securing their smart contract-based assets since 2018.

Blockster: If you wish to comment on it, why has Binance Smart Chain been chosen as a company for smart contracts audit?

Madalin Muraretiu: On the other hand, we decided to develop Sphynx Network on top of the Binance Smart Chain for a number of reasons. Binance Smart Chain (BSC) is accelerating its growth. Indeed, it is already one of the top five most valuable chains in the industry for the following reasons:

  • Highly integrable and interoperable: It allows developers to build very complex smart contracts that are also Ethereum-compatible.
  • Supersonic speed: We are aware that a transaction needs topass throughmore blockchain confirmations before it can be completed. Confirmation’s purpose is to avoid double-spending by eliminating unauthorized transactions.
  • Low Transaction Expenses: In the blockchain environment, the words transaction fees and blockchain fees refer to the costs incurred by users when they conduct a transaction.
  • Increased Liquidity and Versatility: Similar to Ethereum’s ERC-20 standard, Binance Chain provides a platform for generating and displaying tokens that correspond to the Binance Chain’s BEP-2 token standard. Due to Binance’s status as a global exchange giant, users of the token will benefit from more liquidity and a broader variety of applications.

Blockster: Alchemy in blockchain – this is how you often describe the nature of your project. What do these words mean to you?

Madalin Muraretiu: Alchemy in blockchain refers to Sphynx Network’s NFT staking being built using Ampleforth’s Gyser V2 technology, which offers a new and interesting standard: “the universal vaults.” Universal Vaults are a kind of composable NFT standard that enables the locking and unlocking of tokens through an interface. This implies that tokens are never released from the user’s possession. We are pleased to introduce the world’s first non-custodial liquidity mining platform. The architecture of Universal Vaults enables users to increase their capital efficiency by simultaneously subscribing to multiple reward programs with their LP tokens stored in a randomly generated NFT.

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