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Overall, ERC7527 brings significant innovations in asset creation, issuance, liquidity, and price prediction:
Designing Bonding Curves for Specific Financial or Economic Fields: Bonding Curves are mathematical functions that can describe an existing financial or economic behavior or create a new curve to form a new financial or economic behavior. With a well-designed function curve, most financial and economic fields can be expressed this way. We've already seen some promising starts with projects like Uniswap, FriendTech, and Pump.fun. ERC7527 offers greater flexibility in the design of these function curves, allowing for customization and the creation of entirely new curves.
This field holds great potential, providing a space for innovators skilled in mathematics and well-versed in financial and economic principles to create new opportunities, especially in niche verticals. If you can think creatively, many financial and economic behaviors can be expressed, tokenized, and valued using functions. 2 replies
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Wrapping NFTs with Fungible Tokens (FT): NFTs become highly liquid, high-value consensus assets when backed by high-liquidity, high-consensus, high-value FTs (like ETH). The assets created through this process are value tokens supported by "high-quality underlying assets" from the start. These innovative assets can represent royalties, financial instruments, or credit assets. From their inception, these assets inherently possess the potential to be used for payment, collateral, and value derivation.
In the crypto world, the financial logic dictates that tokens initially have a price, and liquidity is created through trading. Once liquidity is established, it supports and sustains the price, further expanding the token's value. 0 reply
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Intrinsic Liquidity, User Participation, and Exit: Users' participation and exit will trigger asset minting, issuance, and destruction, achieving complete on-chain asset pricing in the process. Once the curve function establishes the relationship between FT and NFT, user participation and exit become triggers: users deposit FT to mint and issue NFTs of equivalent value. Under the curve function, NFTs are priced by FT, and the liquidity of NFTs is enhanced due to their pooling with FT. When users exit, NFTs are destroyed, and FT returns to their accounts.
This process requires no third-party involvement, no permissions, and is intrinsically liquid, unaffected by any third party—these properties are built into the curve function.
ERC7527 holds potential for numerous innovations. Stay tuned, explore, discover, and innovate together! 0 reply
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