Doc's Daily Commentary

Mind Of Mav

The Next Token Evolution: The Financial NFT

The most recent non-fungible token (NFT) boom may have you thinking that NFTs are all about digital art and collectibles. Well, for a brief period, they were – after all, who could ignore the infamous Beeple piece selling at Christie’s for $69 million?

In reality, however, tokenizing digital art is just one of the many possible NFT applications. Put simply, NFTs are versatile digital certificates of authenticity. Anything that would benefit from having its ownership more easily transferable, verifiable and interoperable with the blockchain is likely to end up being represented by an NFT in the future.

This is where Financial NFTs come in.

Financial NFTs include everything from insurance and bonds, to unique baskets of tokens, to tokenized real-world assets – and they’re set to become the largest single use of NFT technology so far.

A major example recently showed up in Uniswap v3, which began to issue liquidity provision tokens (claims on tokens supplied by market makers) as NFTs – that’s $1.3 billion in value currently represented as NFT assets from a single protocol.
Aside from Uniswap, there are a variety of ways NFTs have already begun to be utilized for financial purposes. This includes: insurance contracts underwritten by Nexus Mutual being sold as NFTs on Rarible.
Investment contracts being programmed into NFTs by Solv Protocol, for improving the transparency and transfer of project tokens.
Combinations of different fungible and non-fungible tokens being combined into “basket” NFTs by UFiT DAO.
Existing NFTs being combined with interest-bearing ERC20 tokens by Charged Particles.
NFTs are set to capture a large proportion of value in decentralized finance (DeFi), a rapidly-growing sector already holding almost $60 billion in value. Just a conservative 10% of DeFi positions represented as NFTs would equate to $6 billion in financial NFT assets – and the DeFi pie isn’t anywhere near done growing.

We have DeFi for fungible tokens, but what about NFT assets?

Currently, the world of DeFi makes it exceptionally easy to earn a return on fungible tokens and borrow loans against them. Popular trustless protocols such as Compound and Yearn have grown hugely popular for allowing users to do exactly this.

But when it comes to NFTs, there isn’t much infrastructure to borrow or earn a return at all. For a new multi-billion dollar market, there is a huge need for this to be addressed. It’s also worth mentioning that financial NFT holders aren’t just art collectors who don’t care about opportunity cost – those holding financial NFTs need to account for every penny.


Preparing for the Future of NFT X DeFi

With a potential financial NFT boom around the corner, I’m particularly curious about a project called Drops. They believe that they might have the answer to many of the challenges financial NFT holders will face when looking for ways to get the most out of their financial NFT assets.

Drops is a multi-featured platform that enables these financial NFT holders to trustlessly borrow fungible assets including Ether (ETH) and stablecoins against their NFT assets. These loans can be used as the borrower wishes, for use in staking, yield-farming, or simply to avoid having to sell an NFT asset when the owner needs a quick source of funds.

Taking it one step further, Drops plans to have yield-farming vaults built into their platform by late 2021, enabling NFT holders to seamlessly earn quantifiable returns by staking their NFTs. 

The Drops team believes that the Protocol will prevent a lot of headaches for users who currently have very few options with how to leverage their NFT assets. By providing quantifiable returns on NFTs, Drops is designed to significantly reduce the opportunity costs of holding the next generation of financial assets and enable the sector to flourish.

Drops has already partnered with Solv Protocol and Charged Particles – two of the aforementioned projects that are paving the way for the financial NFT revolution. The Drops platform is currently integrating the use of Solv and Charged Particle NFTs to enable holders to leverage their assets effectively.

Regardless if Drops is a project that will last, I think they are an indicator of what’s to come. Exciting times ahead.

The ReadySetCrypto "Three Token Pillars" Community Portfolio (V3)


Add your vote to the V3 Portfolio (Phase 3) by clicking here.

View V3 Portfolio (Phase 2) by clicking here.

View V3 Portfolio (Phase 1) by clicking here.

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What is the goal of this portfolio?

The “Three Token Pillars” portfolio is democratically proportioned between the Three Pillars of the Token Economy & Interchain:

CryptoCurreny – Security Tokens (STO) – Decentralized Finance (DeFi)

With this portfolio, we will identify and take advantage of the opportunities within the Three
Pillars of ReadySetCrypto. We aim to Capitalise on the collective knowledge and experience of the RSC
community & build model portfolios containing the premier companies and projects
in the industry and manage risk allocation suitable for as many people as

The Second Phase of the RSC Community Portfolio V3 was to give us a general idea of the weightings people desire in each of the three pillars and also member’s risk tolerance. The Third Phase of the RSC Community Portfolio V3 has us closing in on a finalized portfolio allocation before we consolidated onto the highest quality projects.

Our Current Allocation As Of Phase Three:

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The ReadySetCrypto "Top Ten Crypto" Community Portfolio (V4)


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What is the goal of this portfolio? 

The “Top Ten Crypto” portfolio is a democratically proportioned portfolio balanced based on votes from members of the RSC community as to what they believe are the top 10 projects by potential.
This portfolio should be much more useful given the ever-changing market dynamics. In short, you rank the projects you believe deserve a spot in the top 10. It should represent a portfolio and rank that you believe will stand the test of time. Once we have a good cross-section, we can study and make an assessment as to where we see value and perhaps where some diamonds in the rough opportunities exist. In a perfect world, we will end up with a Pareto-style distribution that describes the largest value capture in the market.
To give an update on the position, each one listed in low to high relative risk:
SoV/money == BTC, DCR
Platforms == ETH, XTZ
Private Money == XMR / ZEC / ZEN
DeFi == MKR / SNX and stablecoins
It is the most realistic way for us to distill the entirety of what we have learned (and that includes the RSC community opinion). We have an array of articles that have gradually picked off one by one different projects, some of which end up being many thousands of words to come to this conclusion. It is not capitulation because we all remain in the market. It is simply a consolidation of quality. We seek the cream of the crop as the milk turns sour on aggregate.

Current Top 10 Rankings:



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