Key Vehicle: P-Token
P-Token is a new concept in the world of NFTs that seeks to address the issue of liquidity and functionality. It represents NFT collections in an ERC-20 token format, enabling their use in DeFi applications and trading platforms. Each NFT collection has its corresponding P-Token, which can be obtained through selling, borrowing, lending, or consignment. The use of P-Token provides greater liquidity and functionality to NFT collections, allowing them to be used in a broader range of use cases. As such, P-Token serves as the foundation for NFT finance, facilitating greater adoption and use of NFTs in the broader financial ecosystem. The formula for understanding P-Token is as follows:
Any BAYC = 1,000 P-BAYC
Any MAYC = 1,000 P-MAYC
Any CryptoPunks = 1,000 P-PUNK
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P-Token serves as the primary vehicle for Pawnfi's modules and represents the best practice for integrating NFTs into the DeFi ecosystem. Upon its launch, Pawnfi will support the first batch of NFT collections that are compatible with P-Token. As the Pawnfi ecosystem grows and PawnfiDAO develops, other NFT collections will be integrated, expanding the range of assets available for P-Token-based transactions. By utilizing P-Token, Pawnfi provides a means for NFT holders to participate in DeFi applications and benefit from the liquidity, composability, and versatility of ERC-20 tokens.
How do I obtain P-Token?
Users can easily swap NFT and P-Token at the ratio of 1:1000 in Flash Trade.
Users will obtain short-term P-Token via participating in
NFT Leverage
Consignment
By supplying/ depositing NFTs in Lending Market, a certain amount of P-Tokens will be automatically showing on the user's account, which increases the borrow limit (similar to how you supply & borrow on Aave/ Compound, just that in Pawnfi you can also supply supported NFTs).
Users can borrow P-Token (and other ERC-20 tokens) by supplying/ depositing supported ERC-20 tokens (including P-Token).
Simply buy P-Token on DEXs like Uniswap.
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