Tiara — The combination of NFT and Defi

Non-fungible tokens (NFTs) have taken the world by storm. They are smart contracts stored on the blockchain and defined as digital assets that hold different functionalities and characteristics and are indivisible. NFTs can be produced for digital assets like photographs or non-digital assets like paintings. NFTs can also represent a song, a patent, or other intellectual property right. Other use-cases are tokenized real-estate, precious items, vehicles, and all other property.

NFT and DeFi — A promising future?

NFT helps to expand the collateral market in Defi. A DeFi lending platform requires collateral. These collateral are usually crypto holdings. With the advent of the NFT, it is now possible to make other types of collateral assets. For example, a work of art or real estate can be encoded in NFT and taken as collateral.

NFT use goes beyond collateral. It has the potential to represent more complex financial products. These products can be insurance, bonds or options. In insurance, each contract is converted to NFT. These NFTs can be traded on the secondary market.

Another DeFi model has been adopted in the NFT world in issuing governance tokens. Many NFT platforms and markets have started issuing and distributing their tokens.

The Future of NFT / DeFi

• Interestingness

NFT is used to collect art, game rewards, and similar engaging items. Therefore, typical NFT subjects do not need to have any specialized knowledge of Finance. The NFT collection process is interactive and fun. As a result, a large number of people from outside the financial world are expected to join the NFT.

• The scarcity of supply

Asset types encoded in the NFT do not follow the standard rules of supply and demand. Properties such as paintings and works of art increase in value because of their scarcity. For other tradable goods, increased demand will be met with an increase in supply. However, the increased demand for Picasso’s artwork would never lead to an increase in supply. This scarcity helps the NFT’s underlying assets increase in value.

• The attraction of the market

NFT will grow in the future because it is much more inclusive and interesting than the traditional DeFi investment sector. In the DeFi market, the focus is only on financial returns. Here, in the NFT, users expect a much deeper reward at the psychological level. With the world becoming full of digitally-native objects, the NFT is also expected to permanently solve the ownership question.

Tiara NFT marketplace

Keeping pace with the development of the crytol market and the NFT wave, Tiara will launch an NFT minting system that allows users to conveniently put-up real-world assets as collaterals and borrow against them. (description paragraph)

To accomplish that goal, Tiara is currently cooperating with three Korean partners to go public in the near future.

More information you can see at:

Website: http://tiaranft.com/

Fanpage: https://www.facebook.com/Tiara-108369081395171/

Twitter: https://twitter.com/Tiara00944827?s=09

Youtube: https://www.youtube.com/channel/UCggGxhv65NGkFH3op2Oczog

Telegram channel: https://t.me/Tiaranft

Group telegram chat: https://t.me/tiaranftmarketplace