ORIGINALLY POSTED – 25 AUGUST 2022
Flare Network, the new blockchain that aims to connect everything, is collaborating with Pawnfi to unlock usage for Non-Standard Assets (NSA) on Flare.
Pawnfi allows holders of various types of illiquid assets to make use of them in a richer way than they normally could. NSAs can be any type of fungible and non-fungible assets that are difficult to realize, such as NFTs, liquidity provider tokens, GameFi assets or just fungible tokens for smaller projects.
By placing these assets on Pawnfi, holders are immediately able to utilize them in three modes: Pawn (collateral for loans), Lease (lending the assets to others for passive income) and Sale (listing on secondary markets for the highest bid).
The Pawnfi liquidity model is especially valuable for NFT collectors, who are likely to have large amounts of capital locked in assets they are unwilling to part with. With Pawnfi, Flare NFT holders can put them to use by either drawing collateralized loans against them or lending them for yield.
Pawnfi will bring a significant part of its 280k strong active users community to the Flare network, while also complementing the existing Flare NFT ecosystem.
The project also aims to bolster Flare’s DeFi presence thanks to Pawnfi’s financialization model. Users can supply capital for the Pawn protocol, or make advanced trades with NSAs.
Pawnfi will implement advanced fair appraisal systems for the assets supplied, which can also be leveraged by other Flare network participants to get reliable pricing of NSAs.
Cross-chain interoperability between different L1 systems and Metaverses will be strengthened from the partnership. Thanks to Flare’s decentralized and fully-insured LayerCake bridges, Pawnfi will be able to onboard more L1 DeFi chains, GameFi products and NFT ecosystems.
“We are glad to see Pawnfi joining the Flare ecosystem to make use of our powerful interoperability solutions,” said Hugo Philion, CEO and co-founder of Flare Network. “By joining the Flare community, Pawnfi will be able to tap into virtually all major blockchains and assets, dramatically boosting their reach. Meanwhile, Flare users gain access to Pawnfi’s innovative solutions for unlocking usage of less liquid assets.”
“Pawnfi will become a one stop destination as it can now provide a bridge into other metaverses,” said Wesley Kayne, Pawnfi’s CEO and Founder. “Users can achieve seamless cross-chain operations with their assets, and leverage on Pawnfi’s lend/rent/sell as well as advanced liquidity modules to utilize their assets to retain financial benefits.”
About Flare
Flare is a powerful new blockchain with the first consensus protocol for external data. Decentralized applications on Flare can safely and trustlessly acquire and use information from other blockchains, opening the door to a new era of utility: decentralized and insured multilateral bridging, full cross-chain composability with assets and information able to flow freely between all chains, decentralized integration of real-world data in Web3 dapps, and a secure, fully-interoperable multichain solution.
About Pawnfi
Pawnfi.com is the first DeFi product to introduce a lending and leasing market to provide fair appraisal, liquidity and use case for Non-Standard Assets (NSA). Pawnfi enables the divestiture of asset ownership, use rights, and earning rights of Non- standard Assets. Holders of NFT, GameFi, liquidity pool tokens (and more) can draw loans against or lease their assets to gain instant usage from their illiquid tokens.