Unicly Assisting Fractionalization of NFTs
Unicly, which is a permissionless protocol that assists NFT holders in combining NFT collections. They also assist in fractionalizing collections through the minting of tokens. Unicly facilitates a particular type of decentralized exchange, i.e., through its automated market maker platform, and it provides token offerings.
Fractionalization of NFTs
Fractionalization of NFTs necessarily means to divide or fractionalize NFTs into smaller pieces. It is better explained as splitting a single NFT or a collection of NFTs, into much smaller pieces. These smaller pieces can also be bought and sold, thus functioning exactly like a normal NFT. Fractionalization is advantageous because instead of spending a lot on one NFT, they can invest in a fraction of that NFT. This way, the exposure of NFTs will reach way more users, and thus more investments are possible.
The Hurdle Faced
However, this particular project has run into a small challenge. The difficulty faced is that to market the tokens, the holder must provide all the capital. They should provide this capital only through the form of liquidity. This particular scenario implies taking on all the risk directly by the holder. At the same time, not having sufficient liquidity poses a significant issue. Not enough liquidity hurts end-buyers by creating pricing pressure through the market function.
A MISO Solution
To circumvent this particular issue, Unicly decided of taking the assistance of Sushi’s MISO auction methodology.
Miso is a tool that more or less is a launchpad. It follows a similar model to an initial dex offering (IDO). This particular tool provides Unicly users a way to monetize their holdings, thus providing liquidity. Miso also greatly helps in discovering better prices.