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Mind Of Mav

Is This The Next Hottest Trend? DeFi + NFT = NFTFi


The two latest thrilling things in the Ethereum ecosystem are NFT and DeFi. Until 2020, these “Money LEGOs” were quite isolated from each other but became the arena of many new projects, innovations, and volume records. And I’m sure that there’s more room to grow and blend.

Over the past year, we’ve seen the crossovers of these two technologies. DeFi + NFT protocols are now some of the most exciting blockchain projects in the industry. In this article, I will show some projects and try to explain the core idea of blending the two mechanics within the Ethereum ecosystem.


Blockchain Cuties Universe

Blockchain Cuties Universe is one of the most exciting projects among the DeFi games. On the one hand, the project’s technical edge is to use five blockchains to run the project. On the other hand, the team believes that the synergy between NFT and DeFi will push the game’s economy and engagement to new heights.

To achieve a sustainable token ecosystem, Blockchain Cuties Universe will introduce the Blockchain Cuties Universe (BCUG) token. BCUG will support a variety of new game mechanics, such as:

DAO governance;

DeFi yield rewards;

NFT upgradability;

Token-powered, community-driven development.


niftex is a protocol for fractionalizing NFT tokens into liquid ERC-20 tokens. Thus, niftex opens the possibility of collective ownership of expensive and highly demanded NFTs. Collectors can attempt to redeem all ERC-20 shards of NFT token to gain full ownership.


NFTfi is a marketplace for NFT-collateralized DeFi loans. Users can lend NFTs or borrow them. Once a user repays the loan, the asset will be transferred back. If a user doesn’t pay back the total repayment amount before the due date, the asset will be transferred to the lender.


NFTX is an NFT index fund protocol. The basic idea is to bring liquidity to illiquid NFTs, such as CryptoPunks, by creating tokenized index funds like $PUNK. A project governance token, NFTX, is used by the project community for decentralized management of the protocol.


Rarible is a digital artist-focused NFT platform and marketplace. The turn to DeFi began when Rarible decided to introduce a token, RARI, and take steps towards developing the platform towards a decentralized autonomous organization (DAO). RARI token holders (which include NFT creators and collectors) can vote for platform updates and participate in market moderation.

The project developers also plan to launch an index on NFT, a special product for people who want to invest in the NFT market but aren’t sure which works of art to choose.


Yearn Insurance NFTs is one of the most well-known and successful projects in DeFi, which is why its yInsure yield insurance project has become incredibly popular in both the DeFi and NFT sectors. These tokenized insurance policies can easily be sold on NFT markets like OpenSea and Rarible.

Despite its history since 2016, the NFT ecosystem is still very young but very promising and full of revolutionary ideas. And DeFi’s “Money LEGOs” have a large number of possible and already implemented use cases. Therefore, the blend of these two technologies will drive the development of cryptocurrencies and expand users’ audiences.


The projects mentioned above are among the earliest capable of combining DeFi and NFT mechanics. The blend of technologies primarily carries two essential components: an increase in liquidity and new governance mechanisms.

It’s crucial to increase NFT liquidity for further technical development and to engage a new audience. That’s why I consider the technology of NFT-tokens fractionalization as a new important step. Besides, the projects providing indices for NFT-tokens or NFT-market segments allow users to interact with the market, bypassing the high entry threshold.

Other mechanics are also important: the most important thing is voting. Many projects are moving towards DAO, spreading their governance tokens in different ways to stimulate and encourage the community around the project.

The next couple of years will show how productive the blending NFT and DeFi technologies will be and whether it can attract new users to the ecosystem without major problems. For now, every step towards a serious rise in user numbers (e.g., CryptoKitties and Uniswap) entails the surge of transaction cost and network bottlenecks.

The sword Damocles won’t be hanging over for long: either Ethereum 2.0 can partially solve the network bandwidth problems, or projects will continue to migrate to other blockchains for further stable work.


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


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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.

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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.

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