What Is Fractionalized (DAOJONES)?
Earn yield and get liquidity for non-fungible tokens via lending, indexes, fictionalization, derivatives and more. The DeFi and NFT ecosystems exist in silos, causing $20B+ of value to sit idle in wallets. Fractionalized is a protocol that enables everyday users and institutions to earn yield and get liquidity for non-fungible tokens via lending, indexes, fictionalization, derivatives and more.
The protocol has a few core NFT products, with many more to be added in the coming months. Reach out if you’re interested in SDK access. Floor Indexes is a non-fungible token financial primitive introduced by Bridge split to create a novel liquidity option for collectors and collections. Floor Indexes are a layer of fungibility on top of fictionalization.
Fictionalization of an NFT is a valuable tool because selling partial ownership in an asset helps owners reduce risk and create some liquidity while maintaining some exposure. On the converse side, it offers users the ability to get exposure to assets that are otherwise out-of-budget.
Fractionalized Storage Key Points
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Composability for unique assets
The DeFi and NFT ecosystems exist in silos, causing $20B+ of value to sit idle in wallets. Today, NFTs are the cornerstone of the digital art, gaming and entertainment markets, tomorrow, they represent all unique value, from vesting ownership in a protocol to an on-chain mortgage.
Bridge split enables any unique asset to become liquid and yield generative via NFT-collateralize lending, indexes, and more. Applications from market places to games benefit from the Bridge split protocol.
Immediate liquidity for holders
Selling an NFT today, especially a high-value NFT, can take days if not weeks. Depositing to the index offers sellers immediate liquidity. DRAG can be immediately swapped for SOL in the AMM for holders who want their liquidity in SOL. Protocols like NFTX demand holders swap their whole NFT for 1 token to represent the pool.
Fractionalized This forces sellers of rarer or above-floor NFTs to sacrifice all added upside for immediate liquidity. With Floor Indexes, a seller may sell 20% of their asset at floor to get some liquidity but sell the whole asset later and still retain 80% of the upside.
Composable and liquid NFT exposure
By aggregating NFT liquidity and minting a fungible token which mechanics in place to track the value of the collection, Floor Indexes create a token with NFT exposure that can be used in other DeFi protocols. This enables new financial products like derivatives on top of these tokens.
Passive income on NFT exposure
Due to the Fractionalized and frangibility described above, holders of an index token can provide liquidity to the index token-SOL pool to receive trading fees as an LP. This creates the first DeFi passive income opportunity that can be earned with exposure to NFTs. Floor Indexes offer a solution for investors looking to get either lower-dollar or liquid exposure to the floor value of a collection.
Fractionalized A Floor Index has 0 tokens to start and mints 1,000 tokens for every deposited asset. Deposited assets are fictionalized prior to deposit, therefore only a full kilo-asset will mint 1,000 index tokens. Users can also deposit a portion of their dragon, receiving a proportional share of index tokens.Index tokens may also be acquired by purchasing shares for SOL on the open market.
Index tokens may be swapped for any individual asset fractions backing the index. This is the only way to acquire the underlying shares of the specific asset. Therefore, index tokens may be swapped for shares of a bought-out asset that still remains in the index and then redeemed for SOL on the asset’s page.