GumBall Protocol - Deep Liquidity NFT & DeFi Hub
Introducing GumBall Protocol, a multi-purpose deep liquidity NFT & DeFi hub.
GumBall Protocol is a digital asset creation system that ensures liquidity for NFTs created on the platform, making them easily tradable and giving users an NFT trading experience similar to that of Uniswap. The system utilizes the GumBall bonding curve, which allows users to instantly buy, sell, and stake NFTs, earning yield from swap fees generated on the bonding curve. Additionally, the system enables users to borrow liquidity against their NFTs without the risk of liquidation or interest. The bonding curve ensures that every NFT is backed by liquidity in the form of an ERC20.
When an NFT collection is launched on GumBall Protocol, a corresponding amount of ERC20 tokens (GBTs) are also created for that collection. These tokens are specific to the collection and are sold on a bonding curve, with the liquidity from these sales staying in the bonding curves to act as liquidity for the collection holders to utilize. This allows users to easily swap in and out of GumBall NFT positions instantly, stake their NFTs, borrow against them and much more.
GumBall Protocol is a novel approach to creating liquid NFTs. Every GumBall NFT (gNFT) is minted using the corresponding ERC20 of the collection - known as GumBall Tokens (GBT). Each collection on GumBall Protocol will have its own unique GBT token. Every GBT is backed by a liquid asset, such as ETH, controlled by a bonding curve. This allows each gNFT to have a true market value at all times- a gNFT can be sold instantly for the current market price of the collection. GBT price essentially represents a collections' floor price that is currently available to exit a position.
The main issue with NFTs is a lack of liquidity. Exiting an NFT position generally requires a direct sale to a buyer on platforms like OpenSea and LooksRare, making it difficult to assign a true market value to the item - the type of value that would allow an NFT to be used as collateral, for example. Current DeFi ecosystems in place do not function well with non-liquid assets like NFTs.
GumBall Protocol aims to bring the power of DeFi to NFTs by utilizing native liquidity and creating an incentive-driven ecosystem in which NFTs can be used.