Fungify

Frequently asked questions

How does Fungify earn yield with NFTs?

Fungify earns yield with NFTs by lending itself out. It operates as an NFT index and allows users to borrow against their NFTs. The platform offers an index called $NFT, which is a marketcap weighted index of blue chip NFTs. Users can borrow against their NFT collections and earn fees from sellers and borrowers. Fungify uses a hybrid liquidation model to prevent cascading liquidations and stabilize interest rates. Additionally, users can sell their NFTs to the index instantly, with accurate pricing provided by Chainlink price feeds. Fungify is a DAO controlled by governance token holders.

What can I do on the Fungify marketplace?

On the Fungify marketplace, you can do the following:

1. Buy the $NFT index: Fungify offers an NFT index called $NFT, which is a marketcap weighted index of blue chip NFTs. You can buy as much or as little of this index as you want.

2. Borrow with your NFT: Fungify allows you to borrow against your NFT collections. You can choose from various NFT collections, such as Azuki, BAYC, CloneX, CryptoPunk, Doodles, and MAYC. Each collection has a maximum borrow limit and an annual percentage rate (APR) of 5%.

3. Keep your NFT: When you borrow $NFT, your liquidation price moves with the index price instead of with ETH or USD. This means that liquidations only occur when your collateral performs poorly in relation to the index assets. Fungify's hybrid liquidation model prevents cascading liquidations, resulting in more stable and predictable interest rates.

4. Sell your NFTs to the index: Fungify allows you to sell your NFTs to the index instantly. They use Chainlink price feeds to provide accurate pricing.

5. Get involved in governance: Fungify is a decentralized autonomous organization (DAO) controlled by governance token holders. You can participate in the governance of Fungify by holding governance tokens.

Overall, the Fungify marketplace offers opportunities to buy the $NFT index, borrow against your NFTs, sell your NFTs to the index, and participate in the governance of the platform.

How is Fungify governed?

Fungify is governed by a DAO (Decentralized Autonomous Organization) controlled by governance token holders.

How does the hybrid liquidation model work?

The hybrid liquidation model works by adjusting the liquidation price of borrowed assets based on the index price, rather than the price of ETH or USD. This means that liquidations only occur when the collateral performs poorly in relation to the index assets, reducing the risk of liquidation due to NFT market or general market volatility. The model also prevents cascading liquidations, resulting in more stable and predictable interest rates. Additionally, the model allows users to sell their NFTs instantly to the index, with accurate prices provided by Chainlink price feeds.

How does Fungify ensure accurate pricing?

Fungify ensures accurate pricing by using Chainlink price feeds. These price feeds provide real-time and accurate prices for NFTs, allowing users to sell their NFTs to the index at the correct value. Additionally, Fungify's hybrid liquidation model prevents cascading liquidations, resulting in more stable and predictable interest rates. The liquidation price of borrowed NFTs moves with the index price, rather than with ETH or USD, which eliminates the impact of NFT market and general market volatility on pricing accuracy. Liquidations only occur when the collateral performs poorly in relation to the index assets.

Can I sell my NFTs on Fungify?

Fungify allows users to sell their NFTs to the index instantly. The platform uses Chainlink price feeds to provide accurate pricing. The NFTs are part of an NFT index called $NFT, which is a marketcap weighted index of blue chip NFTs. Users can also borrow against their NFTs with a maximum borrow amount and an APR of 5%. Fungify's hybrid liquidation model helps prevent cascading liquidations and provides more stable and predictable interest rates.

How can I get involved in Fungify's governance?

To get involved in Fungify's governance, you can become a governance token holder. Fungify is a DAO controlled by governance token holders, meaning that those who hold the governance token have the ability to participate in decision-making and governance processes within the platform.