We are excited to introduce to you one of our partner projects Gumball Protocol.
Gumball Protocol will further enhance the financialization of NFTs by introducing instant liquidity through bonding curves.
GumBall Protocol is a DeFi NFT creation and trading hub.
When an NFT collection is launched on GumBall Protocol, a corresponding amount of ERC20 tokens (GBTs) are also created for that collection.
These tokens are specific to the collection and are sold on a bonding curve, with the liquidity from these sales staying in the bonding curves to act as liquidity for the collection holders to utilize.
This allows users to easily swap in and out of GumBall NFT positions instantly, stake their NFTs, borrow against them and much more.
Benefits for Users
- Lower barrier for entry for creator's collections due to lowered risk for buyers.
- Ability to re-mint provides options for users while supporting floor price
- Collections launched on GumBall have the added support of the GumBall community, space in the GumBall Discord, etc.
- Ease of buying and selling encourages higher volume
- No need to build additional utility, users don't pay money for promises of future development.
- GBT staking encourages liquidity to stay in a collection's bonding curve.
- Lower risk for buyers- instant liquidity allows for exiting gNFT positions when desired.
- Users can re-mint their NFT for a fee if they prefer a different piece of art from a collection
- Staking option provides a way to potentially offset original cost of NFT (profit is not guaranteed or to be expected from staking)
- Utility and ability to liquidate encourages higher volume and swap fees benefiting stakers.
We will offer another avenue to users for trading the liquid NFTs on a secondary market.
Our pools and gauge/bribing mechanics are perfect for incentivizing deep liquidity for liquid NFTs as ERC20 tokens.
We offer better incentives for LPs, which boosts liquidity for the token and volume follows. In this way, NFT projects can also then earn fees generated from the pool.
The main issue with NFTs is a lack of liquidity.
Exiting an NFT position generally requires a direct sale to a buyer on platforms like OpenSea and LooksRare, making it difficult to assign a true market value to the item - the type of value that would allow an NFT to be used as collateral, for example. Current DeFi ecosystems in place do not function well with non-liquid assets like NFTs.
The NFT space on Arbitrum is starting to flourish and a missing element allowing the NFTs to scale is the fact that, they are largely illiquid assets. We plan to unlock this liquidity and allow the NFTs to be traded on our secondary market. Therefore together, we can scale the Arbitrum NFT Ecosystem and increase liquidity for collectors and projects.
We will have more details in the coming weeks after their first NFT collection launched on Gumball yesterday.
Check out LiquiCats for more details on the launch!
Semper Ad Meliora!
🗡 ABOUT 3XCALIBUR
The 3xcalibur Protocol is a permissionless, liquidationless, oracleless liquidity marketplace, powered by Tri-AMM architecture to facilitate stableswaps, variable swaps, and borrowing/lending.
The Tri-AMM architecture makes 3xcalibur a highly-capable and modular automated market maker.
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