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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.

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Shopify Expands Online Retailers’ NFT-Gated Options

Brands are able to increase the exclusivity of their shops thanks to the e-commerce platform.

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The future of e-commerce, according to Shopify, is in NFTs.

As a new option for brands wishing to make their stores more exclusive, the online retail behemoth, which enables small businesses to construct customized e-commerce shops, is providing NFT-gated storefronts, Shopify announced on Wednesday.

In the Shopify introduction video, which includes a skating woman who passes through a pastel portal and transforms into a Doodles NFT, a voiceover urges viewers to “invite their communities into a world that acknowledges and rewards devotion.”

The video explains that token holders can access special shopping opportunities by connecting a cryptocurrency wallet, including early access to drops and limited collections as well as one-of-a-kind experiences and other surprises.

Only individuals with existing NFT collections are able to apply for early access to Shopify’s “gm” shop, which is a gated merchandise store and a play on the Crypto Twitter acronym for “good morning.”

However, those that haven’t received approval yet can still integrate NFT token-gating apps like Shopthru or Single into their Shopify sites.

Shopify announced that it has already collaborated with the Adam Bomb Squad, Doodles, World of Women, Invisible Friends, Superplastic, Stapleverse, and Cool Cats NFT collections to develop token-gated shops as part of its token-gated business launch.

Shopify is introducing “IRL” token-gating in brick-and-mortar stores in addition to online token-gating, which restricts access to certain merchandise to authorized NFT holders exclusively.

Why is this important? The future of Web3 commerce will focus on exclusivity, for one thing. NFTs, which are distinctive blockchain tokens that denote ownership over an asset, are increasingly employed as membership cards, tickets to events, and “keys” to open benefits, despite the fact that they are frequently oversimplified as digital art or “jpgs.”

Additionally, this isn’t Shopify’s first venture into NFTs: The business has been involved with Web3 since last year, when it announced the launch of NFT sales on its platform. Brands can mine and sell NFTs on Shopify to clients using the Ethereum, Polygon, Solana, or Flow platforms.

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OpenSea, beware—Uniswap is pushing into NFTs

The NFT aggregation platform Genie is being purchased by Uniswap Labs, the organization that created the Ethereum-based decentralized exchange Uniswap.

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In a Bankless interview on Tuesday, Uniswap founder and CEO Hayden Adams said, “We’re attempting to transfer what we brought to the ERC-20 market to the NFT sector.”

You can buy NFTs—individual blockchain tokens that represent ownership—on a variety of different marketplaces, such as OpenSea, LooksRare, or Coinbase NFT. However, few allow consumers to buy many things at once, and none provide aggregation tools that let traders view listings on competing marketplaces.

According to Uniswap Labs on Twitter, “We see NFTs as another form of value in the burgeoning digital economy, and it’s a no-brainer for us to integrate them.”

The NFT aggregator Gem, which also enables customers to acquire numerous NFTs in a single transaction, was purchased by OpenSea just two months prior to the announcement of its acquisition by Genie. OpenSea intends to incorporate NFT aggregation functions into its primary platform, just like Uniswap.

A new tab dedicated to NFTs will be added to Uniswap’s main website later this year as part of the company’s push into NFTs, according to a statement from the company. Additionally, NFTs will be included in its developers’ APIs and widgets.

Uniswap Labs intends to airdrop an unspecified quantity of the stablecoin USDC to Genie’s early backers as a way to commemorate its acquisition. By April 15th, USDC will be given to everybody who had utilized the platform at least once or owned a Genie Genesis NFT. (The business had earlier tweeted that Genie Gem owners were eligible for the airdrop.)

Uniswap entered the NFT market for the first time in 2019 with Unisocks, an NFT that granted holders access to a real pair of socks.

The largest NFT market, OpenSea, has a floor price for Unisocks of 13 ETH (about $15,300) at the time of writing.

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NFT marketplace in Solana Magic Eden completes a $130M Series B investment with a $1.6B value

Over 90% of NFT trade volume on Solana is accounted for by Magic Eden.

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On Tuesday, Magic Eden, a popular nonfungible tokens (NFTs) platform on the Solana (SOL) blockchain with 112,927 SOL ($4 million) in 24-hour trading volume, announced that it had closed a Series B round for $130 million. The funding round was led by investors such as Electric Capital, Greylock, Lightspeed Venture Partners, Paradigm and Sequoia Capital valued the firm at $1.6 billion.

The newly-infused capital will be used to expand the company’s primary and secondary marketplaces, explore multi-chain opportunities, allow new hirings, and for use in research and development. Since its inception in September 2021, the marketplace now receives an average of 22 million unique monthly sessions and sees over 40,000 NFTs traded daily.

Magic Eden’s Launchpad has also onboarded over 250 projects to date. In addition, it offers customization, marketing support, and operational execution to new NFT collections coming onto the primary market. Meanwhile, its secondary market covers over 7,000 listings and sees over 92% of all NFT volume on Solana.

Furthermore, Magic Eden has also launched over 50 games and metaverse projects. In that segment, the firm oversees 90% of all gaming NFTs on Solana traded on its marketplace. Regarding the development, Zhuoxun Yin, chief operating office and co-founder of Magic Eden, commented:

“We’re thrilled to have the continued support of our investors and community and look forward to delivering on Solana and beyond.”

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