Fracton Protocol - Fractionalize all the blue-chip NFTs for everyone
0x6147
June 27th, 2022

Overview

Non-fungible tokens have recently gained momentum in crypto markets, and half of the ETH gas burned due to NFT mintings and transactions. However, as their name suggests, NFTs are indeed non-fungible, non-divisible, and therefore illiquid. For instance, the average cost of buying a BAYC on the secondary market would be more than 80 ETH, and these well-established collections are restricted to crypto whales and the rich.

Therefore, here we aim to solve the pain point of poor liquidity and unacceptable prices of NFT assets by introducing meta-swap, NFT liquidity pools, and derivatives.

What is Fracton Protocol?

Fracton Protocol is a fractionalization trading platform for blue-chip NFTs. It enables efficient price discovery and equity distribution of NFTs by allowing users to buy, own, and trade fractionalized tokens in ERC-20 and ERC-1155 standards.

What is NFT Fractionalization?

NFT fractionalization refers to splitting a complete NFT into smaller pieces, thus allowing multiple people to gain partial ownership of the same NFT. Users can imagine NFT as a cake, and fractionalization is to cut up the complete cake for numerous people to enjoy.

Highlights

Compared with other fractional protocols, there are several distinct functions of Fracton Protocol:

■Fully Decentralized: Fracton users can pre-screen the NFT collections before fractionalization, actively manage NFTs and distribute related benefits.

■Dual Fractionalization: Fracton creates the Meta-Swap mechanism that supports exchanges among ERC-20, ERC-721, and ERC-1155.

■Price Discovery: Fracton aggregates valuation information from many users to provide fairer pricing for NFTs, laying the foundation for building NFT financial products such as NFT perpetual and ETF.

■Fees Collecting: Fracton captures value through transaction fees to stabilize and reinforce the system.

How does Fracton work?

When you come to Fracton Protocol, you can join the open fundraising, which is the first step of the fractional process of the target NFT. After receiving your People's NFTs (i.e., the ERC-1155 fractions), you can swap them for smaller pieces of ownership – the $FFTs (i.e., the ERC-20 tokens) - at a 1:1000 ratio.

If the fundraising round succeeds, Fracton Protocol will acquire the targeted NFT and deposit it into the treasury. Then, the fractions owners are allowed to redeem any NFTs with enough People's NFTs instantly.

If the fundraising round fails, Fracton will use the funds raised to repurchase the accrued $FFT released in this round, ensuring the exchange rate is valid.

Meanwhile, fractions owners can trade $FFTs in DEX and cooperative CEX, seeking arbitrage opportunities.

Vision

Fracton Protocol wishes to construct a bridge between the decentralized world and centralized exchanges, attracting more people to join the NFT world, holding more high-quality NFT collections, and making the NFT market great again!

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Arweave TX
RiYYxxupd7C1_wNc9ntmpn7tiRia1gp7jpf9cPGRT90
Ethereum Address
0x6147f1f884c3189f418d58a11D98F1d53218BA86
Content Digest
pY8h53taMGvo5i6qSUWQwO1zaAuagOI99dbjwfrBi5E