Hey #sphynxgang! Today we will learn about the marriage between #NFT with #DeFi 🔥

Wherever DeFi is available, NFT can be implemented, from gaming and fine arts to digital identity, licensing, and insurance

NFT is the additional fuel that makes the DeFi machine even more innovative. It is important to understand the concepts here. NFTs represent unique assets, objects for buying/selling.

And DeFi is a set of tools through which these assets are realized. Based on this, DeFi unlocks the full value of NFTs, bringing them to more profitable decentralized markets and increasing their liquidity. In turn, NFTs become an excellent add-on for DeFi tools that expands the variety of use cases.

Art NFTs. / Collectible NFTs / Gaming NFTs / Music NFTs / Logistics NFTs / Real-world asset NFTs / Finance NFTs

It’s easy to forget that not every NFT derives value from a song, picture, or collectible item. In decentralized finance (DeFi), NFTs also provide unique financial benefits. Most will have some artwork too, but their value comes from their utility.

  • Loans against NFT collateral. If a borrower fails to meet its obligations, the ownership of an NFT passes to a lender – Solving issue of collateralization.

Without NFT technology to identify unique assets, such options wouldn’t have been possible. And without DeFi, it wouldn’t be so profitable.

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Sphynx Network

Sphynx Network

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The next generation of yield farming and liquidity mining will be introduced by Sphynx Network to Decentralized Finance Space.