When it comes to blockchain and crypto software, NFTs have been all the rage in the last year. Several influential figures, including Tesla founder Elon Musk and Twitter CEO Jack Dorsey, have tweeted about NFTs, increasing their popularity. The NFT market tripled in value in 2020 alone, and it is projected to continue on this course, earning more than $250 million.
The fact that the NFT market is still in its infancy and development stage has not slowed its exponential growth. However, since NFTS still has space to develop, there are several shortcomings that need to be addressed.
- Lack of Technical Knowledge: Many seem to lack technical knowledge about how NFTs operate. As a result, NFT users are increasingly confined to a tech-savvy niche market, with no signs of the market appealing to a larger population. The technical know-how of the market in itself is rather complicated, hence limiting the mainstream adoption of NFTs.
- Time Consuming: The process of converting artworks into NFTs and trading them is often challenging and time-consuming.
- Lack of adequate Infrastructure: Transaction costs in the NFT marketplace are very high, while scalability isn’t quite impressive either
- Regulations: All attempts to liquefy NFTS would be scrutinized since they will be considered as securities.
- Lack of Integrations with DeFi: NFTs are built on decentralized networks which aren’t user-friendly. In addition to this, there are no DeFi protocols that make fractionalized NFTS, Yield Farming, Collateralization, etc., possible.
- Auction: Since most NFTs’ auction models are outdated, NFT developers are forced to either settle for existing bids or remain illiquid before a bidder arrives.
Several issues like these cripple the NFT marketplace and could possibly limit its potential. Which is why Santhosh A, Prashant Kale, and their team created Fusible. The platform’s goal is to address the current challenges that NFT marketplaces face.
How Fusible Reinvents NFT Platforms
The Fusible platform is a price discovery protocol, with its fundamentals based on the Balance Smart Chain. In essence, this protocol enables traders to liquefy NFTs and build pools on the platform and Automated Market Makers like Uniswap. This results in a curve-based price discovery that Fusible says is inspired by Bancor’s Formula.
Prior to the creation of a platform Fusible, only a small number of individuals, such as NFT traders, were permitted to engage in the price discovery process.
However, thanks to Fusible’s innovative protocol, NFT marketplaces are now certainly open to speculators/buyers of Fungible Tokens. It’s a revolution, to be honest.
How Fusible Works
NFT developers can quickly liquefy the value of their NFTs into fungible tokens (FTs) using the Fusible framework. A portion of these Fungible tokens is held by the AMM, while the remainder is available to buy. As a result, sellers can access higher levels of liquidity without being limited by the archaic auction model.
Via these fungible tokens, only the value of the underlying NFT is transferred, not its ownership. Since only their value is exchanged, these tokens cannot be classified as securities, limiting their vulnerability to regulations and scrutiny.
The native token is $FUSII, which is used as a medium of exchange between the participants of the FUsible ecosystem. It also allows users to take part in the governance mechanisms of Fusible and introduces services such as staking and yield farming strategies.
What is Fusible Doing Right Now?
Fusible recently launched a Testnet Program and also shared some updates on its popular closed testing Beta phase by citing major UI/UX innovations. The platform is also contemplating a strategic change in order to meet the needs of its users better. A Q2 launch of their Mainnet is also well underway.
If you want more details on Fusible, check out the following platforms they’re available on: