Pi Protocol — NFT DEX
Greetings, Pi people! It has been a while, and the team has been working hard behind the scenes to push new things out of the door. Before we dive into PIPX, our next major release, we want to give you a quick summary on some of Pi Protocol’s major achievements since the last Update has been published.
July, 8–10th: Pi participated on Las Vegas Metaverse Convention
July, 15th: Pi Phoenix Gamification launched
July, 25th: Marketplace launch on AVAX
July 25th: First NFT Launchpad Collection started!
September 13th: New Marketplace Design & Launchpad live on all chains.
September 28th: Badge and Phoenix trainer live
September 11th: Gamification launch for Panther on ETH.
November 29th: PI 1 Year Birthday Party!
November, 29th: PIPX — Introduction
PIPX Vaults — a platform to create liquidity markets for Non-Fungible Tokens (NFTs).
How does PIPX work?
Users deposit their NFT into a PIPX Vault and mint a fungible BEP20 token (xToken) that represents a claim on a random asset from within the vault. xTokens can also be used to redeem a specific NFT from a vault.
- LP and stake minted xTokens to earn yield rewards
- Better distribution and price discovery for NFT projects
- Instantly sell any NFT by minting it as a BEP20 and swapping via SushiSwap
- Increased liquidity for NFT investors and speculators
PIPX Vaults can be created by anyone for any NFT asset on Binance Smart Chain. (ERC721 & ERC1155 Contracts). Once a vault has been created, any user can then deposit eligible NFTs into the vault to mint a fungible NFT-backed token referred to as an “xToken”.
Learn more about vault creation
Anyone can deposit NFTs into an existing vault (or into the one they have created) in order to mint a fungible xToken that represents a 1:1 claim on a random NFT from within the vault.
Users can then pool their minted xTokens in Automated Market Makers (AMMs) like SushiSwap to create a liquidity market for other users to trade. With liquidity and trading volume established, the NFT-backed xToken enters into price discovery and a “floor price” is discovered.
The floor price denotes the lowest price for a particular NFT. Users establish a floor price by minting and selling xTokens in markets where they consider their NFT to be overvalued.
PIPX Vaults help to establish reliable floor price feeds for NFTs, enabling their wider application in decentralized finance on Binance Smart Chain.
For example, a user has 5 NFTs and values 2 of them highly. However, they consider the other 3 NFTs to be of lower value than the market price for the PIPX vault on Sushiswap. The user deposits these 3 NFTs and sells their 3 minted NFT tokens on PancakeSwap, lowering its price and aiding price discovery.
The above process will continue until a floor price is achieved.
The PIPX vault allows any NFT to be deposited, however, other vaults use an eligibility list that only allows a specific sub-category of NFTs to be deposited. For example, the sCircle vault has an eligibility list that includes NFTs whose metadata is small Circle. Big Circles can not be deposited into this vault.
Who Benefits From PIPX Vaults?
NFTs in their basic form do not earn yield. However, when they are used to mint xTokens they can tap into the world of decentralized finance. To make it easy, collectors can use PIPX Vaults to unlock more value from their NFTs:
- Earn trading fees as a liquidity provider
- Earn fees as an inventory provider
By launching on the PIPX platform, content creators are able to earn trading fees in perpetuity while also increasing the reach and fairness of distribution:
- Earn trading fees
- Distribute NFTs via an AMM in the form of xTokens
- Create instantly liquid markets for new content
NFTs are typically highly illiquid and difficult to price. PIPX Vaults make speculating and investing in the NFT market a far simpler process:
- Access the most liquid markets for NFTs
- Track the price of particular categories of NFT
If you are interested in a Vault for your Project, Collection, please reach out to our Team, we are happy to assist!
For further Details:
Pi-Protocol: PIPX Staking