Polarise protocol
Polarise Protocol is a leading provider of instant liquidity solutions for non-standard assets (NSAs) in a variety of chains and forms. The platform offers a one-stop store for traders, creators, investors and borrowers seeking cash flow and yield. By utilizing the P-Token mechanism and integrating multimodal features, Polarise can unlock deep liquidity and leverage the potential of NFTs in the DeFi space without requiring ownership or transfer of digital assets.
For EVM chains, Polarise Protocol stands out by introducing a comprehensive ERC-1000/P-Token solution that will improve NFT circulation and potentially help NFTs achieve liquidity on par with many ERC-20 liquid tokens. In addition, the P-Token mechanism provides a protective layer shielding NFTs from extreme circumstances, allowing them to circulate safely within the Polarise as well as the broader DeFi ecosystem.
Tiered nodes and NFTs of AI projects, as well as other non-standard assets, can be easily converted to standard assets within the Polarise protocol without diluting or reducing the purchasing power of the community. This initiative offers a liquidity solution for AI platforms, increasing their financial flexibility and stability.
Polarise aims to create a true NFT secondary market by endowing various NSAs with financial attributes and offering users a full suite of services such as trading, lending and revenue generation. In contrast, existing NFT trading platforms such as OpenSea offer a semi-secondary marketplace where tokens are often traded between different whales and reach fewer buyers or users, resulting in a market ceiling.
Polarise modules
Flash Trade. NFT ↔ P-Token. It's a trading house that allows users to quickly exchange NFTs for their corresponding P-Token.
NFT Leverage. Instant borrowing without the risk of liquidation. The service allows users to quickly obtain a matching P-Token using their NFTs as collateral.
Consignment. Receiving an advance payment when selling NFTs. Consignment is the process by which users can sell their NFTs and receive an upfront payment in their respective P-Tokens. For example, a user can put one of his NFTs up for sale on Polarise and receive P1,000 P-BAYC as upfront income, subject to deductions for deduction for withholding depository fees based on the consignment period and interest rate. Subsequently, the user can either take back his or her NFT by returning the upfront payment and custodial fees or continue to put the NFT up for sale and make a profit on the sale.
Polarise's cross-margin lending market allows users to lend their tokens in exchange for borrowing desired assets. For example, a user can lend ERC-20 or NFT tokens to borrow supported ERC-20 tokens, including P-Token. Users must repay their debt before withdrawing their pledges.
Polarise P-Token
P-Token is a concept that aims to solve the liquidity and functionality problem. It presents NFT collections in ERC-20 token format, allowing them to be used in DeFi applications and trading platforms. Each NFT collection has a corresponding P-Token that can be obtained by selling, borrowing, lending or consignment.
Any BAYC = 1,000 P-BAYCs
Any cryptopunks = 1,000 P-PUNKs
The use of a P-Token provides greater liquidity and functionality to NFT collections, allowing them to be used in a wider range of use cases. In this way, P-Token serves as the foundation for NFT financing, facilitating greater adoption and utilization of NFTs in the broader financial ecosystem.
Users can exchange 1,000 P-Token for a randomly selected NFT from the Flash Trade vault, and a service fee is charged. Alternatively, users can select a specific NFT to exchange, in which case a nominal exchange fee will be charged.
Flash Trade
This feature allows users to instantly exchange NFTs for P-Token at a 1:1,000 ratio, facilitating the seamless and efficient buying and selling of NFTs. For example, a user can exchange N x mNFT for N x 1,000 x P-mNFT using the Flash Trade platform. This allows users to quickly and flexibly obtain a P-Token or liquidate NFT assets. In addition, Flash Trade's 1:1,000 ratio provides users with sufficient liquidity and transactional capacity, allowing them to optimize their NFT portfolios and maximize returns.
Only supported collections from the P-Token List are compatible with Flash Trade.
Leverage NFTs without the risk of liquidation
While Flash Trade offers users the ability to instantly buy and sell NFTs, it doesnэt guarantee that users can redeem the same NFT as it can be purchased by other users from the vault. To meet the market demand of users who want to obtain a P-Token without losing their original NFT, Polarise introduces “NFT Leverage.”
By providing their NFTs as collateral, users can borrow the corresponding P-Tokens, with nearly 100% LTV. Users are guaranteed to get their original NFTs back once they return the P-Tokens, which will be secured in a verified and audited PeckShield smart contract.
With NFT Leverage, individuals can pledge one of their NFTs as collateral and receive a loan of 1,000 P-Token (subject to deductions based on loan term and interest rate). Subsequently, users can retrieve their NFTs by repaying the loan in P-tokens plus accrued interest. It's worth noting that price fluctuations will not lead to medium-term liquidation.
Polarise's leverage reflects the isolated structure of margin lending - each NFT loan instance initiates a unique loan order where interest and loan duration are calculated separately. For example, if you want to borrow against 10 NFTs, you need to open 10 separate leverage orders.
There are two main reasons why borrowers should get liquidity through Polarise's leverage module:
- nearly 100% LTV. Although the loan amount is calculated in P-Token, you can quickly settle in ETH via smart router.
- and 0 mid-term liquidation risk. When borrowing P-Token against NFT in the Polarise NFT Leverage module, borrowers will not be exposed to any liquidation risk due to price volatility during the term of the loan. As long as borrowers repay the calculated amount of the P-Token before maturity, they will be able to get their NFTs back. Unlike normal NFT lending platforms where borrowers are exposed to price volatility in both ETH and NFT prices, Polarise will make the risk more manageable as the only risk will be the P-Token amount.
Consignment
The P-Token mechanism eliminates the need for NFT holders to underprice their listings to achieve cash flow compliance faster. The P-Token design allows Polarise to offer upfront payment to NFT holders when selling their NFTs. Sending an NFT to Polarise requires locking the NFT to a smart contract, rather than simply providing a signature and authorization as with standard listings.
Polarise NFT Marketplace
The trading platform displays Polarise-backed assets, user listings, and liquidated items from Polarise's NFT vault. The platform also features Omni search and smart filters that allow users to easily find and discover interesting NFT items.
ERC-1000 EIP
The ERC-1000 is a Polarise Protocol’s proprietary NFT fractionalization technology and P-Token mechanism.
The ERC-1000 builds on the ERC-721 and ERC-20 standards by extending their functionality. In addition to the capabilities of ERC-721 and ERC-20, the ERC-1000 offers the following advanced features:
- Generating a certain number of ERC-20 tokens through the ERC-721 NFT locking process or, conversely, creating ERC-721 NFTs by burning ERC-20 tokens.
- Acquiring a certain number of ERC-20 tokens by depositing NFTs to a designated contract address of the ERC-1000 protocol.
- Providing a seamless conversion of a predetermined number of ERC-20 tokens into randomized and specific ERC-721 NFTs.
- Providing a predetermined number of ERC-20 tokens by using ERC-721 NFTs as collateral under the consignment or leverage functions.
- Providing repurchase options for ERC-721 NFTs used as collateral in consignment and repurchase options for ERC-721 NFTs used as collateral in leverage.
The ERC-1000 is fully compatible with both ERC-20 and ERC-721. All extensions based on ERC-20 and ERC-721 can be applied to the ERC-1000. The unique functionality of the ERC-1000 can also be enhanced by inheriting ERC-20 and ERC-721 extensions. In addition, to facilitate chain processing, the ERC-1000-based ERC-1000 can scan or monitor chain events and store selected data off-chain.
Polar Fighters
PolarFighters, the first ever ERC-1000 standard NFT collection, is a first-class collection of core preferred NFTs for Polarise. The corresponding ERC-20 asset is $PFT.
