Confti, an NFT crowdfunding and fractionalization protocol was officially launched today allowing users to start crowdfunding parties to buy scarce and valuable NFTs together.
Confti is an open-source protocol consisting of a series of smart contracts operating on the Ethereum network. The protocol has built NFT division tools and the one-stop decentralized solution for NFT issuance, division, crowdfunding, and trading for NFT investors.
The protocol allows users to start crowdfunding parties with friends and others to buy scarce and valuable NFT and get into NFT Parties. The NFT parties are decentralized organizations that allow many individuals to participate in auctions through crowdfunding. This is made possible through the fractionalization of users’ NFTs into tradable ERC-20 or ERC-1155 tokens. There are three NFT fractionalization operations on the protocol which include Trading of NFT parts, fractionalization of NFTs, and governance of fractionalized NFTs.
Notably, users can either create or join an exciting party to purchase the NFT. After joining a party, a user has two possible scenarios. If the party wins an NFT auction, the users will get a certain number of fractionalized tokens of that NFT dubbed as parts. These parts are allocated depending on the amount invested in the party. On the other hand, if the party does not win, the user only has the option of recovering the ETH they invested in the party. Note, that the market valuation of parts will be determined by the total supply of parts multiplied by the current market value of a part. Market prices of parts are dynamically established in various liquidity pools.
A part means you partially own the NFT in the vault. A user can determine the auction reserve price of the vault as per their share of the total number of parts. Users can also use parts to provide liquidity in the secondary market and earn rewards for it. In addition, a user can get a share of the vault buyout amount as per your share of the total number of parts
Currently, individuals or organizations can now buy or auction NFTs listed on Zero and Foundation. However, Confti plans to add NFTs from OpenSea, SuperRare, and Rarible. Notable, the NFTs Parts obtained through division can be traded on DEX. CEX and NFT marketplaces.
Marks the official launch of Confti (confti.club).