- Pawnfi collaborated with Flare Network to enable the use of Non-Standard Assets (NSA).
- More than 280 thousand users in the Pawnfi community will be able to perform advanced transactions with NSAs on the Flare network.
- Pawnfi and Flare’s partnership will facilitate information transfer between dApps by strengthening interoperability between different blockchains and metaverses.
Pawnfi has partnered with a new blockchain, Flare, that can connect dApps across all blockchains to unlock the use of Non-Standard Assets (NSA). Pawnfi.com, the first DeFi protocol to introduce the lending and leasing market to provide liquidity, fair valuation, and use case for NSAs, allows holders of various types of illiquid assets to use them richer than usual.
What is a Non-Standard Asset?
NSAs can be GameFi assets, NFTs, LP tokens, fungible-only tokens of smaller projects, and many more fungible or non-fungible assets. When these assets are placed on Pawnfi, asset owners can use their assets in three different modes.
Lease: Lending the assets to others for passive income,
Pawn: Collateral for loans,
Sale: Listing on secondary markets for the highest bid.
Pawnfi’s liquidity model is especially important for NFT collectors, who are likely to have large amounts of capital locked into assets they don’t want to be unwilling to part with. Flare NFT holders will be able to make them available by taking out collateralized loans against them or lending for return. A large part of Pawnfi’s active community of more than 280 thousand users will make transactions on the Flare network.
Flare’s place in the DeFi market will be strengthened with Pawnfi
Pawnfi’s financialization model will strengthen Flare’s DeFi presence. Users already transacting on the Flare blockchain will be able to supply capital for the Pawnfi protocol and make advanced transactions with NSAs. Pawnfi’s advanced fair valuation systems can also be leveraged by Flare blockchain participants.
The collaboration of Flare and Pawnfi will strengthen interoperability between different metaverses and L1 blockchains. With Flare’s decentralized and fully insured LayerCake bridges, Pawnfi will be able to add more L1 blockchain GameFi products, DeFi products and NFT collections to its protocol.
“Pawnfi will now be a one-stop shop as it can provide a bridge to other metaverses,” said Wesley Kayne, Founder and CEO of Pawnfi. “Users can perform seamless cross-chain operations with their assets and leverage Pawnfi’s lending/renting/sales and advanced liquidity modules to use their assets to protect financial benefits.”
“We are delighted to see Pawnfi join the Flare ecosystem to leverage our robust interoperability solutions,” said Hugo Philion, Flare Network Co-Founder and CEO. “By joining the Flare community, Pawnfi will be able to leverage almost all major blockchains and assets and significantly increase their reach. Meanwhile, Flare users gain access to Pawnfi’s innovative solutions to unlock the use of less liquid assets.”
More about Pawnfi
Pawnfi is a protocol that allows users to use lease or loan methods to get immediate use and benefit from their illiquid assets to owners of GameFi items, NFTs, LP tokens, tokens working within a particular dApp, and more.
More about Flare
Flare is a new and advanced blockchain network with the first consensus protocol for external data. Flare’s integration of decentralized real-world data into Web3 dApps unlocks a fully interoperable and secure multi-chain solution. Decentralized applications on the network can securely ingest information from other blockchains. Decentralized and insured multilateral bridging has ushered in a new era of utility. Full cross-chain composability, with assets and information freely circulating across all chains, will play an important role in the adoption of blockchains around the world.
Adnan is a crypto enthusiast who is always keeping an eye on the latest developments in the crypto ecosystem. He is an environmental engineer working on his MBA and has been following innovations in FinTech for several years. Adnan produces written content to review crypto projects and support the crypto community.