Burnt Finance: An introduction to the | project for Solana Chain's fully decentralized auction agreement

Comment: 0x13, beat BlockBeats

The explosion of NFT has made artists ecstatic, countless artists see NFT as a life-changing opportunity, they think crypto art can enable them to make money through their art creation, both do what they love to do and earn earned income, which is the dream of countless people.

But when they did touch the NFT field, they found that the reality is far less beautiful than they imagined.

First of all, the number of artists is far beyond anyone's imagination. Every day, countless NFTs are cast on audit-free NFT trading platforms such as OpenSea and Rarible. In addition, countless people have submitted their application for artist entry to cryptographic art platforms such as SuperRare, Knownorigin and Makersplace. So many people have even made Knownorigin, an old cryptographic art platform, close the application submission portal and only open it again after reviewing the submitted artist application. And they are open for very short periods of time. If you don't want your artwork to be submerged in the NFT of OpenSea, you can only compete with artists for a very small number of entry qualifications. For example, thousands of troops are crossing a single-log bridge.

Source: Knownorigin.com

When they finally get their applications approved, there's another snag: Gas fees. The high cost of Gas has put artists off, especially in the early days when GWEI soared into the hundreds. The hundreds of dollars in fees have deterred many newcomers in the crypto field from selling NFT. Even now, when GWEI dropped to 50, the Gas costs for artists are still staggering. And willing not to GWEI skyrocketing, but the price of ETH skyrocketing.

Source: https://pumpmygas.xyz/

As a result, many people have questioned whether Ethereum is really suitable for artists to sell NFT. Is there a platform that can be completely decentralized without such a high cost?

Introduction of Burnt Finance

Burnt Finance is the first fully decentralized auction agreement based on Solana. Users can cast, trade and auction all kinds of assets in the platform, such as NFT, synthetic assets, digital assets, etc.

Burnt Finance takes its name from its founder, Burnt Banksy, the man who burned Banksy's physical art on the chain.

Burning Banksy's paintings and casting them into NFT, which caused a stir in the crypto and traditional art worlds, is a sign of the Burnt Banksy's pioneering spirit. And that will be mapped to the Burnt Finance project that was incubated by the Injective Protocol.

Today's auction platforms are largely centralised or semi-centralised, which is far from the DEFI spirit, and the emergence of Burnt Finance will introduce a new paradigm for auction platforms.

The advantages of Burnt Finance

As mentioned above, the Ethereum network is not the best choice for NFT players, as poor network performance and high fees are bound to keep many new users away.

Today, new public chains such as Solana are more suitable for NFT development. Solana can handle 50,000 transactions per second with negligible fees of $10 per million transactions, which means the average cost per transaction is only $0.00001. Compared to the Ethereum public chain, new users can be almost insensitive to fees, while performing as well as a centralized application.

In addition, Solana ecology has a wide range of applications, including all kinds of lending, trading and other applications, which are easy to operate and constitute a relatively independent ecosystem. For new users, they can quickly get started without learning complex blockchain knowledge, which is undoubtedly the best choice at present.

The specific advantages of Burnt Finance are as follows:

- Fully decentralized: Burnout Finance is a fully decentralized protocol built on Solana that supports fully decentralized auctions.

- Easy to use: Users can create new synthetic assets or NFTs with extremely simple actions.

- Fast transaction: Burnt Finance can reach 50,000 TPS in 400 milliseconds block time, reducing the possibility of bid manipulation.

- Low Fees: Transaction fees for bidding or casting new assets are fixed at around $0.00005.

- A variety of auctions: The Burnt Finance supported auctions include English auctions, Dutch auctions, closed auctions, joint curve auctions, and many other auctions. As a result, the target audience for Burnt Finance is no longer limited to artists, and new projects may also be able to use Burnt Finance for token sales.

- Support for various types of assets: Users can cast various types of assets, such as synthetic assets, NFT and new digital assets.  

Scrip economy

Burnt Finance is not just an auction agreement, but a fully decentralized infrastructure owned and managed by the community, and its Token Burnt Finance empowers the whole agreement. It functions as follows:

- governance

In order to promote decentralized community governance on the network, BURNT token holders will be able to suggest and vote on governance proposals, and users will be required to pledge their BURNT tokens before voting. The more BURNT tokens pledged, the more voting power they will have.

- As collateral for synthetic assets

As native tokens, Burnt Finance can be used as collateral for synthetic bAssets cast on the Burnt Finance platform. These synthetic assets will be transferable and tradable.

- Transaction fee reduction

For users who purchase NFT on the platform using Burnout, the transaction fee will be reduced from 1% to 0.1%, and the price will be set by the AMM pool on Solana.

- reward

To expand the reach of the platform, BURNT tokens will be rewarded to early users who engage in BURNT Finance activities (such as minting synthetic assets or NFTs, or buying and selling NFTs) for a certain period of time.

- Ensure POS network security

The Burnt Finance platform does not own or run any computing resources of its own, so third-party computing resources are needed to secure the agreement. These verification nodes will need to benefit from the consumption of these resources (such as casting on Burnt Finance platforms) to maintain the integrity of the network. Verification nodes and principals that participate in the pledge to ensure the security of the Burnt Finance network will receive Burnt rewards.  

On May 6, 2021, Burnout Finance announced the completion of 3 million US dollars financing, Injector Protocol, Multicoin Capital, Alameda Research, etc. The selection of these prestigious investors also underlines the value of Burnt Finance.

As the first auction agreement on Solana's public chain, Burnout Finance will bring Solana's unique strengths to the old players, attract new players who have come to NFT after the NFT break, and attract a large number of Defi users. Become a dark horse in today's burgeoning dApps.

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