Bridgesplit framework offers you to upper your non-fungible assets’ liquidity and profitability via multiple services and features such as fractionalization, asset leasing, liquidity SDK, yielding, automated indexes and collateralized lending. Not all of those are already avails for use, so let’s see what do all those fancy namings mean and which of them has the most usability.
Their main selling feature is fractionalization, so we’ll look at it apart from other ones.
Fractionalization - can be financial, utility or governance based.
Financial fractionalisation is dividing an asset into multiple smaller pieces of it.
Utility fractionalization is dividing an intristic value of a good (the value decided by a group of individuals) between those individuals.
And, finally, governance fractionalization is done between corporations.
Any of those three can be done with NFT and Bridgesplit allows you to do that. Once an NFT is reorganised between multiple users access to blue-chips becomes broader increasing their quantity.
However, fractionalization has multiple issues, when done with regular assets.
- Property rights are hard to clearly establish between traditional assets’ holders. Such rights can be divided into three categories: usage, economics and governance. NFT, on the other hand shows clear characteristics, that can be used as indicators for each group. Usage is for private Discord communities, economics are for airdrops and staking and governance is for the ability to sell the token or to vote in the token’s DAO.
- Asset recombination and liquidity maintaining are also pretty complicated processes for traditional assets. However, NFT doesn’t need recombination at all. We’ve already seen multiple tokens being broken apart and not losing their value, because a token, that has collectors’ interest will be in demand either way. And the same argument works for the problem of maintaining token’s liquidity.
So, NFT fractionalization is easier and seems like Bridgesplit is making it one of the app’s key features.
Now about other tools, you can use.
Features, already available
- Asset leasing - sounds straight forward enough and it is always what it is. Lending NFTs could help you elevate your experience in some game or allow you to generate the so-called yield, that is earned by providing liquidity to NFTs, while holding them.
- Liquidity SDK - a special developer toolkit, allowing you to implement NFT indexing into any of your apps such as games, lending or trading applications.
Two features coming soon:
- Automated indexes - Automated indexation is a process of scanning and organising high-volume documents, using a controlled dictionary. As for crypto-user that allows us to find the seller or the buyer for any asset, providing instant liquidity. Instant liquidity is the ability to always have an opportunity to convert small portions of your asset into other tokens. That works for both parties, because a seller can sell their token faster, while the buyer can buy that same token with less research. Most importantly, the tokens become in demand and grow their prices and liquidity.
- Collateralized lending - Lending stable coins is a bit tricky, because they are begged to a fiat currency and need a collateral for a safe loan. Using your NFT as one for taking a loan in USDC sounds great, doesn’t it? That feature will be also available with Bridgesplit. The lender gets a token, he can use for anything he wants asides from selling it, unless the crypto is returned before the term ends of course. And the borrower gets a stablecoin, he needs in short terms as well as once again, the NFT gains liquidity.
Overall, a great project with high functionality. We would point out automated indexation and fractionalization as two of the most interesting ideas of interacting with unique tokens right now and we’ve already signed our team to try dividing one of our NFTs between us - we’ll see where that goes.
Stay tuned for more!