NFT liquidity problem
Addressing the problems of price volatility with more certain liquidity is necessary to increase confidence in NFTs.
Projects such as NFTx, Sudoswap and others have pioneered this problem by introducing customised liquidity provisioning. These projects have tremendous value, but liquidity is dependent on user provisioning, which could lead to future loss of backing liquidity.
Liquidmint is building permanent backing liquidity for NFTs. Permanent liquid backing is collective, accruing value through fees, lending, and strategic deployment of collection treasuries. This creates a only-up price floor for every collection.
Real value that is constantly growing gives traders confidence in their investment and allows them to quantify risk/reward. While the free market will trade the way it trades, the backing metric provides intrinsic value and a money-back guarantee.
The permanent backing concept is inspired by technical designs from contract development from @JeffExtor, @0xkrauser and projects like OlympusDAO and Baseline.
What is Liquidity Backing (LBT)
This is a main Liquidmint's feature that allows you to transform your NFT collection with guaranteed liquidity backing.
This feature gives you the opportunity to support your collection with a portion of a mint or launch and add backing in other ways as the project grows. This way you give confidence to your community through a guaranteed minimum values, in other words, you can Add Instant Real Floor Value.
With each backed non-fungible token having a guaranteed value, traders have access to instant liquidity.
With Liquidmint, everyone wins. Creators make money on trading fees and yields, traders get guaranteed liquidity, and holders can get loans against their NFTs - all while maintaining full ownership.
Interactions with a backed collection result in fee accrual to the backing. So the longer you take to redeem an asset, the better backing value you receive. Furthermore, collection backing can be weaponized toward yield protocols, bera POL, and others means of backing growth.
Permanent backing is also useful for arbitrage. Since backed NFTs can be traded on any trading marketplace, traders can take advantage of organic or programmatic arbitrage in terms of liquid backing to free market value.
Collectors have access to buying, selling, and lending with liquidity always waiting in the collection treasury. This allows for tax loss harvesting or deployment of NFT liquidity into other forms of speculation.
Users can buy, sell or lend your NFTs, and regardless, there is always liquidity waiting for them in the treasury. This eliminates the fear of being stuck with an asset that can't be sold or exchanged, and allows tax losses to be collected unhindered.
The more a collection is traded and its treasury used, the stronger it becomes, creating a more robust and secure ecosystem for creators and collectors alike.
Liquidmint Launchpad
LBT makes a mint with 100% berachain backing. It's like a free mint, but without the bots, because the minters pay for it and 100% back to the minters, and they can also collateralize most of their NFT backing for speculation.
