The story and narrative around creative work is very important to creators and buyers alike. Work without narrative is just work, but work with a story becomes a compelling journey. We are here to help creators on their journey by giving them the best DeFi options for "pre-funding" their next idea.
NFette is an interest-earning, AMM Factory which takes an ERC721 token and mints new ERC20 $SHARE tokens that can be sold to buyers. So for our hack, we are making it as easy as possible to turn future creative work into interest-bearing NFT Markets so creators can gain funding with added interest.
Factory Contract Idea Here is a work in progress idea of how creating a NFette Factory AMM Contract Address will work:
NFT Market Contract (Work in progress idea) When the creator has their new market contract address, they can start accepting collateral from their shareholders. In this kind of market, a buyer will be able to interact freely, buying and withdrawing from the NFT market contract anytime the market is open. Here is a unit test to demo the “Buy” function starting with the buyer;
In the end, (which we have not built yet as part of our hack) the creator will be able to close the market, with the flick of a switch, causing the NFT Market contract to; distribute the ERC20 share tokens to all 100 shareholders, trigger redemption of the collateral from the lending pool, and allow the creator to withdraw the collateral with interest as funding for their work. In this way, both creators and buyers benefit from staying in the market while it is open and waiting for the market to come to a natural close once all the shares tokens are sold.
Who is this for? This tool will be suited for any reputable creator who has willing shareholders waiting for their next project/piece to drop. If the creator has a limited edition work, or work that is collectible, then offering willing buyers shares to co-own before it is complete will entice both parties to pre-fund the work and follow through with creating it, much like crowdfunding platforms.
Possible Use Cases and Integrations The example shown here in our factory tool is just one application of this idea. Perhaps it could be used as an integration on Auduis’s platform for recording artists to fund their albums. This could be adapted to work as a “Kickstarter”, even going as far as making intellectual property for creative work the NFT essentially.
NFette - Allowing creators to gain upfront funding for their next creation before they make it!
This Factory Contract is based on the EIP1167 standard and uses a minimal proxy contract. We have set up a set of contracts that makes it possible for the creator to earn interest on the collateral they collect from selling ERC20 token shares of their NFT. We have put limitations on this contract to only mint a max of 100 tokens at a set start price the creator chooses.
(Work in progress) The collateral collected from selling these shares are then mirrored as deposits into Aave lending pools, earning interest by leveraging the Aave protocol’s aToken contracts (the interest-bearing derivative tokens pegged 1:1 to the corresponding deposited asset). This way there will always be enough collateral in aTokens in the factory AMM contract, plus the locked up interest that is accumulated.