Pawnfi is partnering with Flare Network, a new blockchain with the ambitious goal of connecting everything, to facilitate the use of non-standard assets (NSA) on Flare.
With Pawnfi, owners of illiquid items may get more value out of their possessions than they would otherwise be able to. NSAs may be either fungible or non-fungible assets that are difficult to actualize, such as NFTs, liquidity provider tokens, GameFi assets, or even simple fungible tokens for smaller projects.
Pawn (using the item as security for a loan), Lease (renting the item to others for passive income), and Sale (selling the item) are the three ways in which Pawnfi users may instantly put their assets to use (listing on secondary markets for the highest bid).
Because NFT collectors often have substantial funds stuck in assets they’d rather not sell, the Pawnfi liquidity model is extremely useful for them. Holders of Flare NFTs may utilize Pawnfi to get collateralized loans or earn interest on their holdings via lending.
A large portion of Pawnfi’s 280k active user community will join the Flare network, expanding upon and improving the current Flare NFT ecosystem. The project’s goal is to use the financialization model developed by Pawnfi to increase Flare’s visibility in the DeFi community. Customers may invest in the Pawn protocol or engage in complex transactions with NSAs.
For the provided assets, Pawnfi will create sophisticated fair evaluation algorithms that may be used by other Flare network users to get accurate prices of NSAs.
Wesley Kayne, Pawnfi’s CEO and Founder stated:
“Pawnfi will become a one stop destination as it can now provide a bridge into other metaverses. 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.”
The collaboration will increase cross-chain interoperability between various L1 systems and Metaverses. Flare’s LayerCake bridges are completely distributed and insured, allowing Pawnfi to onboard additional L1 DeFi chains, GameFi products, and NFT ecosystems.
Hugo Philion, CEO and co-founder of Flare Network stated:
“We are glad to see Pawnfi joining the Flare ecosystem to make use of our powerful interoperability solutions. 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.”