A new token standard, SPL-404, is gaining attention on Solana for its ability to integrate nfts and DeFi.
This approach combines the distinct qualities of nfts with the liquidity and fungibility of traditional tokens, creating a unique hybrid asset.
This token standard allows the exchange of nfts for a certain number of tokens and vice versa.
What is the SPL-404 token standard?
Think of SPL-404 as a hybrid token: it uses Solana's Token22 standard to generate nfts with intrinsic token value.
Traditional nfts represent unique digital items, such as artwork, collectibles, or gaming assets, and are typically less liquid than fungible tokens because each asset is unique. SPL-404 changes this by allowing nfts to have intrinsic token value, effectively assigning each nft a certain number of underlying tokens.
This value can vary depending on factors such as rarity, demand, or tokenomics defined by the creators of a given collection.
As a result, this token standard provides more flexibility for trading and accessing liquidity.
How does SPL-404 combine DeFi and nft?
SPL-404 combines DeFi and nft by allowing nft assets to become more like traditional tokens.
- Ease of Trading: If each nft has a built-in token value, it is easier to buy and sell. No need to look for a specific buyer, just find someone who wants the value of the tokens.
- Accessibility: SPL-404 can reduce the cost of accessing nfts; Instead of purchasing a single expensive piece, you can get a level that fits your budget.
- Flexible use cases: This new standard opens up some possibilities. For example, in a game, an SPL-404 nft could be an in-game item with symbolic value, making it easy to trade or sell when you're done.
What are the current SPL-404 projects?
Several projects in Solana are already adopting the SPL-404 standard.
These projects take advantage of the hybrid nature of SPL-404 to offer unique digital assets with more liquidity than traditional nfts. Here are some examples:
- twitter.com/mutantmon_sol” target=”_blank” rel=”noopener”>mutantmon
- twitter.com/FluffysHQ” target=”_blank” rel=”noopener”>hairy
- twitter.com/MallStreetNFT” target=”_blank” rel=”noopener”>shopping center street
- twitter.com/Gogonauts” target=”_blank” rel=”noopener”>gogonauts
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*All financial/investment opinions expressed by nft Plazas come from the personal research and experience of our site moderators and are intended to be educational material only. People should thoroughly research any product before making any type of investment.
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