Bacoor Inc. unlocks the value of NFT (Non-fungible asset) with the introduction of "NFT+" and “Kachiage!" Series.
What is “Kachiage!" Series?
In a new attempt to advance upon what the traditional NFT ecosystem has built, we are excited to introduce "Kachiage!" Series - an "NFT+" series that keeps increasing in value over time. Each card contains Compound Dai, earning interest on the DeFi lending protocol “Compound”.
Kachiage is the leading series of our genesis NFT+, which will be released for the first time ever at the NFT marketplace NAGEMON.
What is NFT+?
Many users have “traditional” NFT assets in their wallets that are not used unless they are playing a specific game or interacting within a specific platform. When not in use, these assets sit idle in a wallet, figuratively collecting dust. So why don’t we put our NFT assets to work by using them as loan collateral in order to generate interest?
Developed by Bacoor. Inc, NFT+ is what we call our new concept of NFT that secures the value of NFT by cDAI, aiming to stabilize and increase the value of these assets through the supply interest rate of Compound lending protocol.
How does NFT+ work?
Each NFT+ comes with an amount of cDAI that is equivalent to the value of the NFT itself.
cDAI is a token obtained by lending DAI to the lending protocol Compound. cDai accumulates interest through their exchange rate — over time, each cDai becomes convertible into an increasing amount of its underlying asset, even while the number of cDai stays the same. This means you will earn interest as long as you hold NFT+. As time passes by, the compounding market interest rate increases, leading to the value of your NFT + also increases.
Since the value of cDAI itself is collateralized by DAI, the value of NFT+ is also secured by cDAI.
Let’s say you bought an NFT+ for $20 which contains 1,000 cDAI. This NFT+ will always generate interest as long as cDAI is tied to the NFT. A few months later, the interest rate of the Compound protocol is now 3%, you decide to sell the NFT+:
Your NFT+ is now equal to 1,000(cDAI)*0.03 = $30.
The most important is, this interest rate will keep increasing over time.
It is a scheme that can simultaneously provide incentives and profits for users who want to hold their NFT assets for a long time. Specifically, you can exchange NFT+ freely in any NFT marketplace or in NAGEMON.
If you no longer want to keep the NFT+, you can remove the NFT and take out DAI by performing a “burn”. We will explain it further in the next article.
Why NFT+?
We believe the creation of NFT+ will lead the push towards the adoption of DeFi in blockchain gaming.
Until now, DeFi mostly revolves around lending and generating interest from cryptocurrency assets. By holding an NFT+, you can engage with this incredible world in a fun way by earning interest on your NFT, without having to depend on the popularity of the game.
It’s not difficult to notice that the value of game assets, in general, relies on the reputation of the game and the demand of the market. Imagine if unfortunately, the distribution ends, these game items can be good for nothing. According to this, players have to rely on the game developers and accept the risk as a matter of fact.
However, with NFT+, you can completely eliminate the risk as your NFT automatically earns interest on the exchange rate of Compound that keeps increasing day by day.
In addition, you can "burn" your NFT+ at any time to withdraw DAI associated with the NFT. This NFT then will be removed from our system.
Conclusion
We strive to make blockchain technology more engaging and entertaining, as well as providing equal opportunities for any individual to participate in the world of DeFi. Stay tuned and please wait for our next update on NFT+!