In our earlier publication, released in the first week of April, we took a comprehensive dive into NFTfi for those who were not yet familiar with the term, to shed light on nftperp, which is a groundbreaking protocol that enables users to engage in short, long, and hedging positions on highly-valued (Bluechip) NFTs. Our primary emphasis was on nftperp.
In the final musings of the preceding piece, we expressed a strong desire to witness additional inclusion of other bluechip NFTs, among other proposals put forth. In answer to this, the Pudgy penguins have emerged, prompting me to make a few additional entreaties, not at the “closing thoughts” section of this article, but here and now. Specifically, I humbly request a Lamborghini Urus, a rare Azuki NFT, and a subtle adjustment to my trading volume that would enable me to claim the topmost spot on the leaderboard and seize the lion's share of the monthly "Odeshi" bounty.
On a more serious note, epic-level progress has been made since we last talked about nftperp. I mean, the signs are there, that this is no ordinary protocol, but rather an exceptional one. Privileged to join the league of whitelisted beta testers, I’ve recently participated in the “Odeshi” Odyssey, and in this article, I will be narrating my experience with a few extra points missing in the previous article, as to why I think nftperp is the “dark horse” of NFTfi.
Dan and I are Beta Testers
For context, nftperp beta is open for whitelisted players to join the “Odeshi”, pronounced as “o.duh.shee” — which is a retroactive airdrop campaign for beta users. Having applied, I recently got approved and decided to ask my buddy, Dan about his experience trading on the platform.
Oh the sheer joy in Dan’s reply when I asked him what he truly thinks about nftperp without bias, his response?
“That’s real NFTfi haha”.
Dan’s excitement had me opening a test long on the Azuki collection with 3.8x leverage.
Both as a user and an observer/researcher, here are some of the things I find most fascinating about nftperp as well as explanations of concepts that might confuse you as a first-time user if you get approved to try out private beta.
Nftperp creates a fine combination of pure degeneracy and NFT culture with Trollbox! The in-built chat is an interesting way to meet some of the finest NFT traders in the space, doing nothing but executing trades and having some fun while at it. As simple as this is, it’s an outstanding way to network with blue chip owners hedging their NFTs, and fine traders longing and shorting the listed collections for gains.
Insane liquidity, amazing prospects
Nftperp recently announced crossing $300m in volume. This is quite impressive for a protocol without a token. The ability to long and short “bluechips” thereby boycotting the need for a big purse to acquire them and sell for profit has opened the NFT markets to a new window of liquidity in-flow.
Source: Dune dashboard
Millions of dollars worth of ETH volume get attracted to some collections within a day, just like we’ve seen on the “Miladys” since they became tradable on nftperp, leaving one to ponder about the liquidity generated from winning trades. Your guess is as good as mine; a significant portion of it could circle back to the NFT markets, effectively replenishing the liquidity of the most coveted collections.
On Mobile Experience
Not so many protocols out there can boast of a decent mobile experience. The pretty much consistent lags when trying to use a PERP DEX on a mobile device is simply a recipe for mental exhaustion. Trust me, it’ll have you screaming into the clouds. But hey! The nftperp devs seem to get it right.
I smoothly executed my maiden perp trade using my mobile device, and it was a breeze. Now you might wonder, why is a mobile trading experience so crucial? Well, when leveraging NFTs, it's vital to respect the fundamentals. When you're out and about, without access to your trusty laptop or comfortably seated at your desk, it's easier to see the importance of seamlessly placing a trade on your mobile device. Convenience is key, especially when you're on the go and need to seize an opportunity arising from a fundamental event.
Classic example is Elon Musk casually posting a milady meme as seen below, sending the floor price from 3.4E to over 5E in minutes.
Picture this: You find yourself in a whimsical situation, unable to capitalize (go long on milady) on Elon’s tweet simply because you're frolicking in the sand, holding hands with your beloved at the shoreline, while your trusty Mac languishes back home. Oh, the frustration! But fear not, for behold! nftperp comes to the rescue with its remarkable mobile prowess, enabling you to seize the essence of those unprecedented fundamentals even while on the move.
Nonetheless, some tweaks here and there will surely make the experience better, however, this is a good start, a very good one.
Possible Protocol synergy
Blur recently announced the launch of their P2P lending protocol, “BLEND” —a testament to the rapid innovation in the NFTfi arena.
Source: Blur official Twitter
I am calling dibs on a potential partnership between Blur and nftperp. This is quite easy to foretell, as there’s a substantial history between ERC20 PERP DEXs and lending protocols ranging from arbitrage opportunities to collateralization, to hedging.
Imagine this scenario: A borrower on Blend takes out a loan using an Azuki as collateral and receives ETH from a lender. But here's where things get interesting. If the borrower believes that the value of the Azuki collection will rise during the loan period, they can take a long position using a percentage of the borrowed ETH on nftperp. This allows them to potentially earn enough profit to pay back the loan without any interest while also recovering their Azuki collateral at a higher value. It's a smart move that requires some foresight and confidence in the market, but it could pay off big time in the end.
Dynamic Funding Payments
As mentioned in our earlier piece, nftperp has incorporated the vAMM model, along with additional features, to operate as a perpetual futures market without any expiry dates and as a result, is conditioned to utilize the concept of funding payments.
Funding payments play a critical role in ensuring that the price of perp remains closely tied to the underlying asset. These payments are exchanged between traders based on their long or short positions.
For as long as I remain an unrepentant protocol farmer and until the end of the “Odeshi '' monthly trading competition, I’ll continue to place trades on Nnftperp.
But of course, not just because I would want to get my hands on the protocol tokens but because it’s also a pretty efficient place to leverage my way to owning an Azuki.
Importantly, I’m looking forward to seeing some new additions such as more collections added to the suit, an improved UI for the funding rate such that a noob can understand at first glance, as well as other meaningful suggestions popping up on the protocol’s discord server.
Also, a birdie might or might not have informed me that there will be a new trading competition soon, this time with the fun mafia theme ( I know you’ve probably seen the “weirdly” cool lores on nftperp Twitter so far). The competition will likely commence within the following week after the Mafia Nuts NFT collection mint. So, keep an eye out for the official announcement, don’t just take my word for it.
Also one final thing… this has just been released from the nftperp Twitter account… keep an eye on Mafia Nuts.
That’s all for now, until the next review, keep farming, and if you’re yet to apply for private beta access, you still have time to do so here.