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Interpretation of NFT Fragmentation Trading Protocol Unicly, The Game between Collector and Speculator

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NFT derivatives protocol issue model.

本文作者： MultiCoin Capital 合伙人 Mable Jiang

On April 8, Multicoin Capital partner Mable Jiang posted a long post on Weibo to introduce a new NFT fragmentation transaction protocol, Unicly (app.unic.ly). He introduced the token mechanism of Unicly and how to participate in it. The details are as follows:

1. Unicly 协议有一个平台币叫 Unic，和 Sushi 采用的是基本上一套的代币经济，90% 的归社区挖出来，10% 的给开发者。挖矿释放速度是逐渐减慢的。网站上点「farm」的话，也有一个地方类似 sushi 抵押成 xSUSHI 一样，把 Unic 抵押成 xUnic 收集产生 Unicswap 的费用。

2. There is an overseas article titled "A Sushiswap Fork for NFT", and the key is that the name of the swap is Unicswap, which is really A little funny...

3. At the present stage, it opens the community's white list for people to apply for their own UTokens and lets the community discuss and select some UTokens that can be used for mining in the future. So what is a UToken?

4. 任何用户可以无准入的往一个合约（金库）里面锁一个几个 NFT，然后基于这个金库，发一个代币，这个代币就是 uToken。这个思路就是$WHALE 或者 $B20 一样的。比如现在有人在上面发了一个 uMASK，背后的金库里面装的都是 Hashmask。那么这个东西和 $WHALE 或者 $B20 不同的地方在哪呢？

5. When initially creating a UToken, in addition to putting the NFT in the vault, the creator also provides AMM liquidity. Because if there is no liquidity at all, no one is going to buy your token. Its Unicswap is the fork of Uniswap, so the process of providing fluidity is exactly the same.

6. When creating a new UToken, there is another place where the issuer of the coin is required to decide on an option to "vote what percentage of the NFT in the Vault will be purchased by an outside bidder". So if you click on the UMASK (Figure 1), you will see that there is a 0% of 40% Needs. This means that if an outside party wants to bid directly to buy the NFT from the vault, 40% of the UMASK will need to be voted into the voting contract to trigger the bid to buy the NFT, and then the auction payment will be divided among all the UMASK holders.

Figure 1 & have spent

7. So there are actually two waves of people playing the uMASK: one is the speculative wave, the one who is betting on the value of the uMASK token, so they can buy and sell the uMASK freely on the AMM. One wave is collectors who like the Hashmask inside and are willing to bid on a single Hashmask NFT.

8. Here's where the game gets interesting. Someone who buys a uMASK may not vote, but instead sells it on AMM when the uMASK rises directly to where he wants it. But someone who has bought a lot at a low price and is not worried about losing money, but wants to maximize his profit, may not sell on the AMM (because of the risk of a big slippage), but will be willing to vote until the auction price is high.

9. This process actually provides liquidity to NFT holders in a disguised way, while also attracting speculation from DEFI players who do not have the ability to pick NFT themselves. For example, if Andrew Steinwold or Beeple created a UToken, there is a high probability that someone would be foolish enough to buy the UToken. This actually brings a great deal of liquidity and new blood to the NFT market, because they can buy the UTokens issued by a painter or collector just because they like them, and get speculative profits, without holding any NFT in the whole process.

10. Strictly speaking, this should be called NFT derivatives agreement. Although the mining has not started yet, it is interesting to think about it. Keep an eye on which UTokens are whitelisted into the mining pool.