NFT's lack of integration with DeFi
The last few years have witnessed rapid progress in two blockchain based concepts with widespread real-world applications – the concepts of DeFi and NFTs. Similar to the NFTs sector, DeFi is also one of the fastest-growing segments. It is leading major crypto transactions with a TVL of $230 billion.
While the crypto industry is actively exploring both the concepts will the full intent of exploiting their full potential, most of these activities are carried out in silos which has created a disconnect between both ecosystems. Due to a lack of innovation, most of the existing projects have failed to merge these two revolutionary concepts to extract maximum benefits.
On one hand, NFTs and metaverse have been making significant contributions toward the development of numerous industries. while on the other, DeFi has enabled a new financial system with greater transparency and security.
If merged, these two types of innovations can help unlock financial opportunities while opening new possibilities in the NFTs and metaverse space. One of the foremost aspects of the DeFi-NFT combination is the capability of unlocking the financial value of NFTs to benefit both ecosystems. For instance, the ease of proving ownership of NFTs and their underlying assets makes them effective collateral against which loans can be easily issued to the owners. It will also help DeFi platforms to expand beyond crypto collaterals to include tokenized physical assets, effectively extending the reach of their financial services. However, none of the projects have made any significant effort to successfully integrate DeFi and NFTs and create a combined model.
7Pixels is going to be the first-of-its-kind project to implement a unique DeFi-NFT model to enable value creation and promote innovation. Its model will generate value and unlock financial opportunities for NFT holders and NFT marketplace participants.