Hi everyone, I’ve created a NFTX vault for Curio Cards!
An NFTX vault is a smart contract that holds NFTs from a single collection and tracks the balance of NFT-backed tokens, called vault tokens. In this case, we now have a Curio Cards NFTX vault which holds Curio Cards, with an accompanying ERC-20 vault token called CURIO. The number of CURIO cards in existence is always equal to the number of cards in the vault. Anyone can mint CURIO by depositing a card, and anyone can redeem a random card from the vault for the cost of 1 CURIO. Since all cards in the vault are valued the same, the CURIO token will track the Curio Cards floor price, or the cheapest card(s) in the collection.
- Fractionalized vault tokens - the CURIO token tracks the Curio Cards “floor”, and lets investors get exposure to the Curio Cards floor price without needing to buy a full card
- Floor liquidity - having good floor liquidity means that collectors can sell large amounts of cards quickly without crashing the floor price. Liquidity is important because it makes an asset a better store of value if owners are able to sell it quickly in a pinch without taking a loss.
- Yield generation - every time someone uses NFTX to buy or sell an NFT there is a 5% fee which goes to liquidity providers. So, by having an active vault, liquidity providers are able to use Curio Cards to mint CURIO and then deposit with ETH to earn income - thus making Curio Cards a productive asset.
See the NFTX FAQ for more info:
- NFTX vault fractionalizes Curio Cards NFT into ERC20 vault token CURIO. 1 CURIO = 1 floor curio card
- Liquidity on SushiSwap lets users buy and sell floor curio cards through the vault without having to rely on OpenSea offers and listings
- DO NOT deposit non-floor cards into the vault. You may not get the same card back when you withdraw/redeem.
- You can provide liquidity and receive fees from vault trading volume. The tradeoff is that your gains will be reduced if Curio Cards has a significant increase in price (impermanent loss).