NFTX

The history of NFTX (NFTX) began in 2020 during the DeFi summer. Alex Gausman, the founder, initially started working on a project called PunkFarm, which focused on creating a single floor fund for CryptoPunks. Over time, he expanded the scope to allow anyone to create their own vaults and added features such as customized eligibility lists for specific NFT subsets.

In December 2020, Alex hired LevelK to perform a security audit on the contract. Despite some low-level concerns, no major exploits were found, and the audit was publicized. The NFTX Dao was set up using Aragon, first on the Rinkeby testnet and then on the Ethereum mainnet. This Dao controls the treasury and the ability to upgrade the NFTX protocol contracts.

The community raise, where people could supply high-quality NFTs in exchange for NFTX governance tokens, helped bootstrap the treasury. This treasury is primarily used for providing liquidity to NFTX products on decentralized exchanges like Sushiswap.

NFTX officially launched in 2021, offering a platform for creating ERC20 tokens backed by NFT collectibles. These tokens, called funds, are fungible and composable. The platform allows users to deposit their NFT collections into vaults, minting fungible ERC20 tokens that can be traded on decentralized exchanges.

Since its launch, NFTX has evolved to include features like an AMM system, ETH-based vault fees, and dynamic premium fees. The platform aims to provide high-quality services to the NFT marketplace, including indexing projects and offering liquid markets for trading NFTs.

NFTX is a platform that allows users to create and trade ERC20 tokens backed by NFT collectibles. These tokens, called funds, are fungible and composable, making it possible to create and trade funds based on various NFT collections such as CryptoPunks, Axies, and Avastars. The platform aims to provide liquidity and financialization for the NFT market.

1. NFT-Backed Tokens: NFTX creates ERC20 tokens that are backed by NFT collectibles. These tokens are called funds and are fungible and composable, allowing users to trade them on decentralized exchanges like Uniswap.

2. D1 and D2 Funds: There are two types of funds on NFTX: D1 funds, which have a 1:1 backing between a single NFT contract and an ERC20 contract, and D2 funds, which are Balancer pools that combine D1 funds to offer more diverse exposure.

3. Fund Management: When a new fund is created, the account that sends the transaction is designated as the fund manager. The fund manager can modify fund parameters like fees, supplier incentives, and NFT eligibility before finalizing the fund, which gives up their control to increase trustlessness.

4. Liquidity Provision: NFTX includes features like liquidity provision and inventory management using ERC721 tokens. This allows users to provide liquidity for popular NFT collections and earn yield.

5. Concentrated Liquidity AMM: NFTX V3 includes its own concentrated liquidity Automated Market Maker (AMM), a forked version of Uniswap V3, which supports proportional vault fees to liquidity providers (LPs).

6. Vault Fees: Vault fees are now in ETH, and there are premium fees that work like a Dutch auction for newly deposited NFTs. These fees are designed to incentivize liquidity provision and improve the overall user experience.

7. Staking and Rewards: LPs can stake their SLP tokens on NFTX to capture protocol fees. Staking rewards are currently turned off but will be activated in the future.

8. NFT Flash Loans: NFTX V2 includes the ability for ERC20 flash loans, similar to Maker's flash mint module, allowing for more flexible and efficient use of NFT-backed tokens.

NFTX uses an upgradeable proxy controlled by the NFTX DAO (on Aragon), which allows NFTX token holders to change the NFTX smart contract if they reach consensus. The NFTX token supply is 650,000, with a distribution that includes allocations for founders, NFT contributions, ETH contributions, liquidity, and farming.

While NFTX has been reviewed by Code Arena and multiple experienced Solidity developers, there are still smart contract risks involved. Users are advised to be cautious and not risk any capital they cannot afford to lose in case of an exploit. The NFTX DAO plans to migrate treasury assets gradually out of caution, and users are recommended to do the same during the early weeks of a new protocol release.

Overall, NFTX aims to provide a comprehensive platform for NFT-backed tokens, offering liquidity, financialization, and a range of features to enhance the NFT market.

The token NFTX (NFTX) is not explicitly mentioned in the provided sources. However, the sources discuss the strengths of NFTs and FTX Token (FTT) in general:

• FTX Token (FTT):

  • Strengths include allowing users to receive trading fee discounts on FTX and OTC rebates based on their holdings of FTT in a tiered system.

• NFTs:

  • Strengths include:
    • Accessible investment opportunities: NFTs enable anyone to invest in a digital asset by providing a convenient and easily transferable means of ownership.
    • Secure and verifiable ownership: NFTs, being based on blockchain technology, offer a tamper-proof and transparent way to establish and verify ownership.
    • Fractional ownership: NFTs allow for the division of ownership and efficient trading among numerous investors, improving market liquidity.
    • Market efficiency: Tokenizing physical assets can streamline sales processes and eliminate intermediaries, allowing sellers to connect directly with their target audiences.
    • Investing opportunities: NFTs can be used to streamline investing in various industries, such as fine wine and real estate.
    • Security: NFTs offer enhanced security by providing unique, non-transferable identities, making it difficult for assets to be pirated or stolen.
    • Fractionalized ownership: NFTs enable fractionalized ownership, allowing multiple people to purchase a share of a physical asset.

These strengths highlight the benefits of NFTs and FTT in terms of accessibility, security, and market efficiency.

NFTX, a cryptocurrency project focused on non-fungible tokens (NFTs), faces several financial risks. These risks are inherent to the NFT market and can impact the value and security of NFTX investments.

NFTX is susceptible to counterfeiting and fraud, as criminals can create fake NFTs or manipulate existing ones to deceive buyers. This can lead to financial losses for investors who purchase these fraudulent NFTs.

NFTX, like other NFT platforms, is vulnerable to money laundering. Criminals can use NFTs to launder proceeds from illegal activities, taking advantage of the anonymity and lack of regulation in the digital asset space.

The lack of clear regulations and standardized practices in the NFT market increases the risk of fraud, theft, and other illicit activities. This lack of oversight can make it difficult for investors to verify the authenticity and value of NFTs, leading to potential financial losses.

NFTX is exposed to market volatility, as the value of NFTs can fluctuate rapidly. This volatility can result in significant financial losses if investors buy NFTs at high prices and then see their value drop.

NFTX, like other blockchain-based projects, is susceptible to security risks such as hacking and technical glitches. These risks can compromise the integrity of the NFTs and lead to financial losses for investors.

NFTX may rely on centralized services for metadata storage, which can create risks if these services are compromised or shut down. This can result in the loss of access to NFTs and their metadata, impacting their value and usability.

The use of high leverage ratios in NFT trading can create a highly volatile environment, increasing the risk of significant financial losses for investors.

Increased regulatory scrutiny in the wake of events like the FTX collapse may lead to stricter regulations and enforcement, which can impact the value and usability of NFTX.

These financial risks highlight the importance of careful investment analysis and risk management when investing in NFTX or any other NFT project.

• Alex: Founder of NFTX, responsible for building the initial version of the project, which began as PunkFund and expanded to allow for permissionless creation of vaults.
• ChopChop (Chop): First core contributor to the NFTX DAO, involved in setting up early communication channels and creating educational content.
• Jackieboi (Jack): Joined the team for client-side development, allowing for faster iteration of the product.
• Quag: Handles infrastructure and UI development, referred to as a set of identical twins working around the clock.
• Toes: Assists the DAO with support, documentation, business development, and governance calls.
• Aeto: Also assists the DAO with support, documentation, business development, and governance calls.