We have produced a document "Nftfy Report" that explains the Nftfy product, include how we connect to the sponsors. Please check it in the link below: Nftfy Report: https://drive.google.com/file/d/1B4b8jV3QDxGPO-Xg_JAtiKbd2O6y8cV7/view?usp=sharing
The main purpose of a NftFy is to securitize an NFT (ERC-721) into ERC-20 tokens, herein referred to as Shares. So, to make it possible we will present all the features that are necessary to run it totally decentralized demonstrating its usability.
Basically the platform is:
For any reason, the stakeholder Origin Owner wants to Securitize a NFT using NftFy, basically, the only thing he needs to do is stake a NFT and get 100% of Shares under the form of ERC-20 tokens.
So after that, surge two internal functions on NftFy 1) a NFT Stake that is responsible to manage the wrap of the NFT on ERC-721 and 2) an ERC-20 Manager to Generate the pegged tokens, the Shares.
Spread Shares These Shares, besides the Origin Owner, can also be held by other Ordinary Holders. After he has distributed the shares, he will no longer control 100% of the Securitized NFT. So he becomes another Ordinary Holder, with no special power. The only thing that he can measure is your percentage of total Shares. Just like any other Ordinary Holder.
Extract NFT Some Rules must be added on the Smart Contract by the Origin Owner to make the application handled. The main focus on this manager is to make rules to rule the redeem of the NFT from the NftFy.
Considering that the Shares are divided among many holders, this manager module seems like a Shareholders Agreement on the traditional securitization market and must have its rules written clearly and immutably at the beginning of the creation of the contract
To make it simple is necessary a Front End interface where the user can easily interact with the dapp.
So now, by the front end Interface the Actor Origin Owner can easily stake his NFT send them to the NftFy and he can fill the Shareholders Agreement creating you specific rules to manage how any shareholder can get back and extract the NFT from NftFy.
Also, like on the traditional Securitizer market, the Shareholders Agreement is composed of some specific parts. First of all we bring an explanation of a Shareholders Agreement.
What is a shareholders agreement?
A Shareholders agreement is a parasocial contract used to discipline the individual interests of the partners, apart from those directly related to the company’s business. Thus, while we find in the social contract the matters that govern the company and its partners, in the Shareholders Agreement, the partners seek to regulate their individual interests in the face of society. Purchase and sale of shares (Drag Along and Tag Along); Right of First Refusal; The exercise of voting rights; Controlling Interest
Controlling MVP Considering the necessities of Nftfy and the Shareholders, among these rules we selected the most important to develop on the MVP.
Exit Mechanism For now, on the MVP the Shareholders Agreement will be composed by the rules Exit Price and Drag Along that enable the dapp NftFy to work perfectly.
Therefore, in the Front, the Actor Origin Owner fills the Shareholders Agreement basically setting up an Exit Price that will be run in parallel to the Drag Along tool. This means that if someone pays the Exit Price, all the shareholders are obliged to selling its shares. But in the case of NftFy its works slightly different.
Who paid the Exit Price get the NFT from the Stake of the dapp, and the ETH payment turns the new backing of the contract, so the Ordinary Holders can claim its ETH, giving back the Shares to the dapp, that burns the ERC-20 and pays the shareholder Ether. The contract backing is no longer to the subjective value of the NFT and becomes intrinsic to the amount of ETH accumulated in the ETH Fund.
ETH Fund Module
The ETH Fund Module is a manager of the funds. At the MVP the only way to feed the ETH Funding is in the Extract NFT process. It receives the ETH paid by the Actor Extractor Buyer. The Extractor Buyer doesn’t need to pay all the Ethereum defined on the Exit Price. He can try to take Shares from the market at a low price and pay to the contract a bunch of Shares and Ethers. The payment is calculated by this formula:
Exit Price (EP) = Valuation = Total Shares * Exit Price Shares Exit Price Shares (EPS) - is the price of each Share on the Exit Price valuation Accumulated Shares (AccS) - is the number of shares that the Extractor Buyer collected to pay the extraction.
Payment = (Shares*EPS) + ETH
EHT Payment = EP - (AccS * EPS)
Therefore, this completes the entire process of creating and redeem a Minimum Viable Product of the NFT securitization process. From this we can evolve by expanding the use of the modules.
We are using dapp.tools, react and ant-design
Please, check Nftfy Report for more details.