• HP and F-NFT: A unique approach to discovering liquidity and more accurate valuations

  • One of the fastest growing areas in the cryptocurrency space is non-forgeable tokens (NFTs). The elements of fun, market depth and simplicity have led to tremendous growth in the broader NFT space.

    This growth is even more indicative when you consider that everything has only happened in a relatively short period of time.

    The NFT of Decentralized Finance

    Despite the fanfare, NFT’s cases and applications are for collectibles, games, and digital artwork.

    While the market waits for the next breakthrough in this space, having NFT represent real-world asset ownership in a fractional way could be the big thing coming up. Not just for the NFT market as a whole, but also potentially paving the way for the DeFi world.

    Anyone with a secure wallet will have the ability to trade shares of exotic private sale tokens or make private investments in the form of fractional NFTs. This development could be disruptive, and there is a protocol in place to make this possible.

    What are fractional NFTs?

    Fractional NFTs (F-NFTs) is a new decentralized project that will allow NFT owners to tokenize fractional ownership of their items, accelerating fractional purchases and transactions across NFTs.

    In addition, fractionalization allows NFT holders to gain liquidity from their assets without exchanging entire tokens.

    Advantages of F-NFTs

    How will F-NFTs benefit those who hold the assets? Let’s find out.

    Easier investments

    The platform will allow users to split complete NFT collections into smaller pieces and deliver them under a distributed ownership token, enabling those with less understanding of the space to invest in digital art collected by more established collectors.

    Compatibility with the Vault

    The Fractional program operates with the NFT Vault, which owns the entire item and allows holders to divide it into parts as they see fit. They can then transfer replaceable ERC-20 tokens to friends, sell them, or use them as a liquidity reserve.

    When an enthusiastic party emerges, they can transfer the equivalent or more prominent ETH to initiate a sale at the asset’s stock price. At the end of the sale, the winner of the auction will receive the NFT and the token holder will be able to make a request for the ETH spent.

    Decentralized Autonomous Organization Finance (DAOfi)

    DAOfi is another project that promotes a decentralized exchange forked from Uniswap to exchange fragmented NFTs. it was created to address the liquidity woes of the secondary market for NFTs. With DAOfi, NFT owners must wait for someone to buy or buy a particular item at an asking price.

    Breaking down the irreplaceable ERC-721 tokens into replaceable ERC-20 tokens allows buyers to own a piece, much like owning a replica of a work of art. The replaceable tokens will be arranged on a bonding curve on DAOfi so that liquidity is readily available to consumers and merchants in the algorithm.

    The Future of F-NFTs on Horizon Protocol

    Horizon Protocol is exploring the ability to differentiate NFTs by having someone lock down the original NFT or create a synthetic version of the NFT that is then differentiated and backed by our debt pool.

    By locking in the original NFT or creating a synthetic creation of the NFT so that it can be fractionated – Horizon Protocol can provide liquidity and better pricing standards for NFTs that are rarely sold and bought in bulk. This increases liquidity and provides owners of original NFTs with more synchronized and active prices.

    Horizon Protocol is also working on the idea of adding new DeFi functional layers to NFTs, such as collateralization, lending and shorting.


    Horizon Protocol’s system provides a safe and secure platform for synthetic assets representing the real world economy. The infrastructure allows a large number of innovative asset classes to be traded. Split NFTs are an extension of Horizon Protocol’s synthetic asset framework (cryptocurrencies and real-world economies), providing users and NFT owners with a unique way to discover liquidity and more accurate valuations.

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