NFT Containers with Programmable Value

NFT Containers with Programmable Value

By benlakoff | Charged Particles | 20 Sep 2021


A key theme at Charged Particles is reiterating that NFTs are so much more than art.

We’re definitely fans of Art, in fact we truly believe we empower artists with the unique toolset to create truly unique and groundbreaking types of art, but the idea that Non Fungible Tokens (NFTs) can act as a container holding Fungible and / or other NFTs is very powerful.

With Art, we love the idea of “Nested NFTs” — NFTs with other NFTs locked inside of them. Some recent examples include The Guild with their Nested NFT in AprilGmoney’s Crypto Punk Nested NFT or Gigi Buffon’s Nested NFT Drop… And many more.

Artists are clearly loving the creativity associated with filling your NFT full of (either or both) other NFTs or other Tokens, but what are the other use cases?

NFTs as containers, for Digital Value

When an NFT is transformed into a container, or basket, NFTs are able to hold other digital assets of value in a completely programmable way — the possibilities are truly endless.

It’s very important to note that these Charged Particles (container) NFTs are still standard ERC-721 NFTs. They can be transferred, held, used as collateral, or sold on popular NFT marketplaces like OpenSea.

Using Charged Particles, the digital assets held inside these NFTs can be programmatically time-locked. The value is there, But it’s perfectly containerized and locked into the NFT.

Need a custom lock? Don’t worry, we’re currently researching the additional locks — value-based unlocks, more robust time locks (e.g. vesting schedules), etc. Let us know what you’re looking for!Fungible Tokens, Locked in an NFT: Use Cases

With Charged Particles you can create a new NFT to use as a container, or you can turn existing NFTs into these NFT Baskets….that means that your favorite (or least favorite… some ideas there) NFT can now be transformed into a customized financial product of your liking.

Some possibilities include NFT Gift Baskets or Trust Accounts or you can take it a step further and fractionalize your basket NFT into fungible tokens giving you the ability to make new, unique (improved) index funds.

These are just some of the potential use cases with Charged Particles, but the key is that NFTs acting as a container for digital valuables unlocks so much more potential.

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Use Case: Illiquid Tokens in an NFT

Expanding on one particular use case — Illiquid Tokens containerized into a NFT. One obvious use case is the ability for pre-launch / pre-IDO / pre-trading project vesting tokens to be locked in an NFT.

Current Process: Project Tokens are locked into a vesting contract associated with a user’s wallet.

NFT-involved Process: Project Tokens are deposited into a NFT and time-locked to a future date. That NFT is held in a user’s wallet.

Now, with the Project tokens time-locked and associated with an NFT as opposed to a wallet address, these unvested tokens can be accessed as the asset that they are including:

  • Using the NFT (with the the unvested tokens inside) as collateral for a loan
  • Selling the tokens before they vest
  • Transferring the vested tokens to another wallet

This use case isn’t limited to only pre-IDO tokens. Some other possibilities include:

These use cases are just some of the many use cases that are completely possible with what we’ve built today at Charged Particles — available completely free (need to pay gas) on either Ethereum or Polygon Layer 2.

We’ve definitely seen this as a potential for (one of the many) use cases for Charged Particles and welcome any project / team to help try it out.

If you’re interested in leveraging Charged Particles for this — let us know in our discord!

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Summary

NFTs will continue to be used in more innovative ways across new and existing platforms. Charged Particles allows users to do so much more with this (already amazing) technology.

Charged Particles dApp allows users the ability to mint (for free) NFTs, Energize / Charge their existing NFTs (deposit assets inside them, also free) and bundle things in ways that get us really excited.

Integrations with what we have, and where we’re going will lead us to wild new frontiers that we can barely imagine.

Have an idea for a dApp built using Charged Particles Protocol? Check out our accelerator.

Come build the future of NFTs with Charged Particles.

Interested in Reading More?

Curious what else can be built with Charged Particles? Check out:

About Charged Particles

Charged Particles is a protocol that allows users to deposit ERC-20 tokens(ANY tokens) into an NFT. A scarce NFT (e.g. Art, Collectible, Virtual Real Estate, In-Game Item, etc.) can now be transformed into a basket holding a number of other tokens. The Principal amount can be time-locked inside the NFT, and through integration with Aave’s aTokens, the programmable yield from these DeFi yield-generating assets is just a few clicks away.

What’s in your NFT?

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benlakoff
benlakoff

Charged.Fi


Charged Particles
Charged Particles

A protocol fusing Decentralized Finance (DeFi) and Non-Fungible Tokens (NFTs). Users to deposit a primary asset such as DAI into their NFTs, which is converted to a yielding asset (e.g. aDAI). Principal & interest (“Charge”) from the deposit asset in then “locked” into the NFT.

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