Introducing Liquidity Aggregation by Wasabi Protocol
Wasabi’s mission is to create more liquid NFT markets. NFT Finance has taken the sector by storm, but the market is fragmented and inefficient.
Our newest product - Liquidity Aggregation - aims to solve these issues by matching buyers with liquidity across NFT-Fi protocols.
The Problem with NFT Liquidity Today
Liquidity in the NFT market is scattered across different platforms, making it harder to leverage efficiently. The existing mechanisms only allow you to borrow against an asset you already own, limiting those who wish to get exposure to new assets but do not have sufficient capital.
This has become clear within the rapidly growing NFT lending space, where we see an abundance of lenders but not enough borrowers to match the supply. Lending platforms have hundreds or thousands of ETH sitting idle in pools waiting to be lent out, but limited borrowers to fill the demand. Potential speculators are hamstrung, not by a lack of liquidity in the market but by the structural constraints that only allow lending against owned assets.
The Solution: Liquidity Aggregation
We are excited to share our newest product, Liquidity Aggregation, in hopes of connecting the dots and piecing together the current liquidity fragmentation issues in the market.
Wasabi’s Liquidity Aggregation matches lenders to potential spot buyers looking to get affordable NFTs exposure without the full up-front cost. Our two initial lending partners, Zharta Finance and NFTfi have over 9,000 ETH of liquidity combined. While our marketplace partners OpenSea, Looksrare, NFTX, X2Y2, and Caviar, have thousands of listings waiting to be purchased.
Wasabi's Liquidity Aggregation allows buyers to seamlessly access liquidity with the most favorable terms across the market. This means they can speculate on desired collections by paying only a fraction of the floor price upfront. This approach benefits the entire market by enhancing capital efficiency and increasing spot volume on partner exchanges.
How does this work?
Liquidity Aggregation is a permissionless approach to matching buyers and lenders across the market. Anytime there is an available loan, a buyer can come in and pay an upfront premium to buy the asset and repay the loan later. Wasabi’s back end uses flash-loans, allowing users to seamlessly long desired collections without needing the full amount of capital upfront.
Once the loan is paid off, the user can take custody of the asset if they choose to. Or, they can use Wasabi’s Arbitrage Tool to flip the NFT without additional costs to take profits.
Upon opening a position, the trader is issued an NFT that symbolizes their ownership. This NFT grants them the flexibility to transfer or settle their trade as desired without the need to close the loan.
Wasabi’s Liquidity Aggregation is permissionless. Allowing users to take leverage on collections never before possible: Art Blocks, CryptoPunks, and a whole variety of other high-end pieces!
Liquidity Aggregation is a strategic solution to a major inefficiency in the NFT market. By matching lenders and buyers across various protocols, we are unifying liquidity to create a more cohesive NFT market for all.
Try it for yourself today at Wasabi.xyz.