💰Proof-of-collateral NFT
Last updated
Last updated
Having your buy position represented through an ERC721 NFT unlocks unprecedented liquidity and DeFi opportunities.
Buyers will automatically receive Proof-of-collateral NFT for each of the BUY position
As their buy position is represented via. ERC721, buyers could trade out of their position at ease in our native Pump Marketplace (coming soon)
This NFT could also be used as collateral to borrow USDB/WETH in NFT-Fi platforms
This NFT is required to claim tokens / collateral after settlement period in the smart contract. Do not burn or lose access to your Proof-of-Collateral NFTs, as ownership is required to claim tokens once settlement is complete
How do I price the value of this NFT/position?
When you create an offer-to-buy, you are required to deposit collateral to attract seller to fill this position
If you sell your position at this point (before anyone filling the order), the underlying value is $11 USDB. Because the holder of this NFT can withdraw 11 USDB collateral if no one fills it with fee applies.
Once the offer is filled, the value of the position (aka NFT) changes.
There are 2 scenario at settlement:
A) Seller settles: the buyer (NFT holder) receives equivalent amount of Blast Token based on the amount of Blast Points
B) Seller defaults: the buyer receives seller's collateral as compensation and withdraw the buyer's collateral as well
Unlike other platform, the settlement is NOT automatically delivered to your wallet due to our NFT mechanism
The buyer (aka NFT holder) would need to claim the asset in PORTFOLIO tab
Therefore, any one can buy / sell position that has been settled BUT not claimed yet. At this point, the value of the NFT/position is very clear
In order to unlock additional liquidity for the buyer (since they cannot default or cancel their order once filled), this Proof-of-collateral NFT is an innovative and sophisticated way to achieve this goal.
The Proof-of-Collateral NFT can be traded on secondary marketplaces for a discount or premium according to your expected value of your order, natively on Pump Markets
