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Sync Network Brings Together DeFi and NFTs to create Real-world Scenarios for NFT Users

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Non-fungible tokens, often known as NFTs, need no introduction at this point. These digital treasures, which are a byproduct of blockchain technology, have risen to prominence as digital diamonds, presenting enormous new prospects in art, entertainment, and gaming.

Even though NFT sales are surging, financial experts worldwide are still disputing whether these digital collectibles have any practical applications. Most NFT projects haven’t been able to provide any use-cases for “JPEGs” to their satisfaction. The SYNC Network, on the other hand, is altering this for the better.

The SYNC network is actively transforming the DeFi ecosystem and reinforcing the presence of NFTs in the financial markets by merging NFTs and DeFi.

Introducing CryptoBonds, a New Crypto Asset Class

SYNC Network is an Ethereum-based platform that has launched CryptoBonds, a new asset class in the DeFi industry. CryptoBonds are time-locked NFTs with an ERC-721 contract that produce rewards for their holders. Okay! But, what exactly are they used for?

These NFTs are used to give liquidity to decentralized exchange protocols in simple terms. In today’s DeFi ecosystem, liquidity mining is perhaps the most popular incentive method. Investors utilize it to earn yields on their digital assets, while projects rely on it to create liquidity for users and keep their platforms running.

This incentive scheme contributed significantly to DeFi’s growth, but it is also to blame for the market’s instability. Why? Because investors have the ability to withdraw funds at any time, there is a sudden shortage of liquidity, price swings, and the failure of promising businesses.

CryptoBonds come into play in this scenario. This new asset class effectively preserves liquidity in DEX protocols while guaranteeing that long-term investors are fairly compensated for their contributions.

Let’s take a closer look at how CryptoBonds maintain liquidity and stability below the surface.

CryptoBond

The liquidity provider tokens (LPTs), SYNC tokens, and the NFT highlight artwork are the three major components of a CryptoBond. The artwork is generated uniquely for each new CryptoBond by an algorithm, and the NFT highlight is what gives CryptoBonds rarity and tradability. LPTs are the liquidity pair staked on the DEX protocol, whereas SYNC is the platform’s native token, which is locked in the CryptoBond with LPTs.

To build a CryptoBond, a user must go to a DEX protocol on the Ethereum network, such as Uniswap, and stake a trading pair in order to receive LPTs. The LPTs are then paired with an identical quantity of SYNC tokens and tied to an NFT highlight and CryptoBond ID to construct a CryptoBond on the SYNC platform.

Every CryptoBond has a lock period that can be anywhere from 90 days to three years long. During this time, investors will be unable to access their crypto holdings. However, because the bond is a rare NFT, it can be traded as a whole on NFT exchanges if the investor wants to get out of their stake before it expires. The entire ordeal occurs without disrupting the DEX protocol’s liquidity.

Liquidity provision on the DEX and interest on the SYNC component of the bond generate money for CryptoBonds. When the NFT matures, it is burnt, and investors receive all of the money and locked SYNC tokens and newly mined SYNC tokens, resulting in a far better yield than traditional liquidity mining. For context, the value of the 1,800 CryptoBonds generated thus far has increased by an average of over 203 percent, easily covering the recent crypto slump that caused SYNC to drop by 75 percent. The bigger the yield, the longer the lock is open.

A Wide Range of Use-Cases

The dispute over whether or not NFTs are helpful may now be put to rest thanks to the advent of CryptoBonds. NFTs are now being used in the DeFi ecosystem to produce liquidity and preserve stability and prevent risk. Pump-and-dump situations may now generally be avoided, safeguarding good developments. Aside from that, their scarcity makes them one-of-a-kind collectibles that can be traded for profit on NFT marketplaces. In the DeFi ecosystem, CryptoBonds can also be used as collateral for obtaining loans.

SYNC Network provides a peer-to-peer lending tool that uses CryptoBonds as collateral. The loan’s duration and interest rates are flexible and agreed upon by the borrower and lender. Additional promissory note NFTs are available on the platform, which can be sold on NFT marketplaces to allow the lender to recover their funds before the loan expires.

In short, this innovative platform can transform NFTs and the way the world perceives them completely. With $6 million in crypto secured across 1800 bonds, the project’s grandiose aspirations have already earned it a substantial success. This project’s future looks bright, and the team feels it has the potential to become DeFi’s stability standard.

NFT

Could this trademark application indicate that PayPal is developing an NFT market? 

A trademark application for blockchain and cryptocurrency technology has been submitted by PayPal. Some claim that the file has something to do with Web3 and the metaverse, although it may be tied to an NFT marketplace.

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A recent trademark application by PayPal has been found, and it suggests the development of a service pertaining to several facets of blockchain technology. The file, which was made on October 18, makes a notable allusion to the potential introduction of a non-fungible token (NFT) market.

For its logo, PayPal submitted two trademark applications. The first one concerns “downloadable software” for cryptocurrency trading and storage. The second discusses cryptocurrency-related payment processing services.

Although users may currently buy cryptocurrencies on PayPal’s platform, this filing suggests that there may be more to come. The concept of assets is substantially broader in the filing’s terminology. Mike Kondoudis, a trademark lawyer licensed by the USPTO, claimed on Twitter that this filing relates to NFTs and the metaverse.

Although there is no proof to support this, it would not be shocking if it were true. The finance business would be adding its name to a lengthy list of businesses that are starting to make inroads into the Web3 and metaverse spaces.

PayPal is investing more in cryptocurrency.
Over the past two years, PayPal has intensified its focus on cryptocurrencies. First, the company made a huge announcement for the industry by saying that consumers would be able to purchase cryptocurrency on its platform.

However, it didn’t start enabling users to move those funds into wallets outside of the network until recently. It indicated that it would roll out additional crypto-related features in the latter part of last year. One of those additions might be an NFT marketplace.

It teamed up with Coinbase’s TRUST network more recently. This was viewed by many as an endorsement of the sector. The TRUST network upholds consumer security and privacy while adhering to the banking industry’s Travel Rule.

Increased Criticism of Payment Giant
Additionally, PayPal has been in the spotlight for all the incorrect reasons. The business has recently come under fire for a contentious policy that penalized users for disseminating false information. Later, it claimed that false information was released with the amended policy. Crypto aficionados, however, were eager to point to this as evidence of the value of decentralization.

PayPal established a blockchain and cryptocurrency advisory committee earlier this year. According to the company’s management, working with governments is essential to overcoming obstacles and seizing possibilities.

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NFT

Seba Bank, a cryptocurrency company, aims to store valuable NFTs

Seba Bank, a cryptocurrency company, has launched its first NFT service, a blue-chip NFT-specific institutional-grade, certified, and independently audited hot and cold storage custody product.

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The launch comes in response to requests from customers to keep their NFTs with the bank alongside other crypto assets, such as the already-approved Bored Ape Yacht Club, Cryptopunk, and Clone X NFTs. The bank stated that new collections would be added based on customer demand.

With its newest offering, Seba Bank seeks to entice investors who view NFTs as an asset class and crypto natives. Not your keys, not your bitcoin is a well-known phrase in the crypto sphere, and adherents of this maxim could object to having their Apes or Punks stored with a third-party custodian.

Urs Bernegger, co-head of markets and investment solutions at Seba Bank, however, highlights a growing group of NFT holders who are more at ease handing up their NFTs and private keys to a company.

They don’t want the key because they aren’t even aware of how to handle and store it. He claimed that they’re more concerned with damaging the key than giving it to a bank.

It’s a significant issue. Between 2.3 million and 3.7 million bitcoins, according to Chainalysis, are trapped in inaccessible wallets. Numerous accounts of people have lost millions owing to losing private keys, including Russian officials, students, and engineers. Families have also been prevented from accessing substantial quantities of money following sudden deaths in which wallet owners had not disclosed their private keys.

Bernegger asserts institutional custody can be advantageous for native crypto users as well. There has been an increase in businesses providing services that employ NFTs as collateral for conventional banking services like loans.

Seba Bank is thinking about implementing these features in the future. Based in the crypto-friendly Swiss town of Zug, the four-year-old bank already backs several investing, credit, lending, and staking options for cryptocurrencies and might extend them to NFTs.

“Instead of traveling to the market, for instance, we could create a club for collectors and assist them in finding other collectors. There are a few things we have in mind, but we laid the groundwork by storing NFTs securely at first, “explained he.

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Projects

The NFT album maker for Kings of Leon now includes a metaverse music venue

YellowHeart, a Web3 ticketing startup, is opening a metaverse music venue in an effort to transform how performers, teams, and event organizers distribute tickets and interact with fans.

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The facility, constructed on Spatial, will feature Grammy-nominated blues musician G.Love as its opening act later this year. Fans can communicate with one another, participate in meet-and-greets before and after performances, and use several screens to view what is happening in various areas of the stadium simultaneously.

They will soon be able to order meals and drinks before the event, which will also be available as digital things.

The idea of an online concert has so far primarily been popularized by big gaming companies. The most well-liked virtual competitions have occurred on sites like Fortnite and Roblox. Ariana Grande’s Fortnite concert in August 2021 received 78 million viewers. Next month, Decentraland will host its second Metaverse Music Festival. Over 100 musicians are on the lineup, including well-known performers like Ozzy Osbourne and Soulja Boy.

In addition to throwing an event, YellowHeart, which assisted Kings of Leon in releasing an NFT version of their most recent album, stated that it hoped to accomplish more. It was established in 2017 with the lofty goal of revolutionizing the music ticketing sector as a whole, which has historically been dominated by powerful reselling organizations and exclusive ticketing relationships. These alliances frequently impose limitations on what purchasers can and cannot do with their tickets. Trying to resell a ticket for a concert you can’t go to might be a headache.

YellowHeart believes these issues can be resolved by returning control to artists and fans via web3 technology. Additionally, it may provide advantages that cannot be programmed into conventional tickets.

“These range from complete albums to personalized vinyl records, exclusive merchandise, and immersive visual art. Web3 tickets also allow performers to update fans on new tour dates, music releases, giveaway possibilities, and much more, according to the business.

It has already collaborated with well-known figures, including Julian Lennon, Maroon 5, and MGM Resorts. Contrary to the non-NFT versions offered on Spotify, iTunes, and other platforms, those obtained through YellowHeart entailed particular customer benefits.

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