Combination of NFT and DeFi
As we all know, the most common profit-making method in the DeFi market is income farming. Users can obtain incentive tokens by providing encrypted assets on the decentralized financial trading platform. Beginning this summer, with the rise of decentralized financial and currency markets like Compound, DeFi trading activities began to surge. This year, DeFi is different from 2020. It has already begun to shift to gamification. It is no longer a simple financial transaction attribute. It is biased towards gamification. User funds will also become equipment used in DeFi games and form “GameFi” (Game and Finance). A combination of words).
For example, in a farm game, profit farming farmers can invest in liquidity and get tokens in return. Then they use these tokens to play video games like “children in amusement park” and hope to win by winning the game. To earn extra bonuses, who can provide the best proof of transaction ownership in the game? There is no doubt that it is NFT tokens.
NFT can obtain the elements that give value to the project in the physical world and transfer these elements to the digital field. Without NFT, it would be difficult for the value-added of “digital products” such as game skins to be quickly reflected. For now, only NFT can digitize the value in the physical world. For example: if a professional League of Legends or Dota player wins a championship of a specific skin tournament, the value of that specific skin will become very high. At this time, you need to prove that this skin is the “champion skin” instead of A copy.
In blockchain games, the assets in the game, such as skins, weapons, or anything used by your character, are generated as NFTs, which can mark the assets in the game and convert them into NFTs, which can be said to be the game industry. A major breakthrough for China. The core elements of NFT can prove ownership and authenticity, and can be easily transferred between parties. Not only that, the decentralized exchange also provides a perfect trading channel and platform for the transfer of NFT tokens. At the same time, the introduction of liquidity mining also solves the problem of insufficient market liquidity in the NFT field.