NFTs to Liquid Assets!
Liquid Collectibles offers projects the possibility to create BEP-20 tokens that are backed by NFTs, enabling users to instantly buy and sell NFTs with no need to wait for a person on the other side. These tokens are called NFT Indexes (NFTi) and can be traded on ApeSwap same as any other BEP-20 token.
Tokenizing NFTs is the process of selling NFTs on Liquid Collectibles to get NFT indexes in return. As previously mentioned, NFT indexes are BEP-20 tokens, which, unlike Non-Fungible Tokens, can be split into smaller denominations, can be traded for other tokens on decentralized exchanges, and can be used to provide liquidity and earn yield farm rewards.
How it works
If you’re wondering where those NFT indexes are coming from, don’t worry, here you have the answer. At the beginning we mentioned something about NFT indexes being backed by actual NFTs but, we didn’t explain what that means.
NFTs on Liquid Collectibles are always worth 100 NFT indexes.
Does it mean their value is always the same? No! Because NFT index price can vary.
That said, you need to know that for every 100 NFT indexes in circulation, there will always be an NFT in the Liquid Collectibles protocol.
When an NFT is tokenized, 100 NFT indexes are minted, 95 goes to the user tokenizing its NFT, and 5 are charged as a fee, on the other hand, when an NFT is bought at Liquid Collectibles, 100 NFT indexes get burned, and 5 NFTi are charged as a fee.
Wondering what happens with those fees? Well, those fees from buying/selling NFTs are used as an incentive to reward those providing liquidity.
NFT collections and indexes
As you might know, at Liquid Collectibles we have several collections listed, each of which has its own NFT index. For example, Liquid Monsters have $LIMOi, Non-Fungible Apes have $NFAi, and The Bull Society has $BULLi. If you have been paying attention to these names, you probably noticed that they all end with a lowercase “i”, that’s how we differentiate indexes from other tokens.
Why should we tokenize our NFTs in Liquid Collectibles?
1. Earn Yields
If you like NFTs but you like passive income as well, then tokenizing your NFTs is probably your best option. You can be exposed to the collection success by owning NFT indexes, and you can become a liquidity provider by pairing your $NFTi with $BNB to yield farm and get rewards in the form of both $LICO, and $NFTi.
You can learn more about how to yield farm and why here.
2. Redeem an NFT
As long as you hold 105 NFT indexes from a given collection, you’ll be able to buy one floor-priced NFT. Imagine you own a Liquid Monster NFT, but you just found that a new Liquid Monster has been listed in Liquid Collectibles, and you fall in love with it. Well, if you have enough $LIMOi already or the equivalent in $BNB, then great, but if you don’t, you can tokenize your current Liquid Monster NFT to get 95 $LIMOi, buy 10 more $LIMOi, and finally get your new NFT which will cost you a total of 105 $LIMOi.
3. Trade your indexed NFT tokens
If you need to “cash-out” your NFT, you can easily tokenize it for NFT indexes on Liquid Collectibles and then go to ApeSwap.finance to swap them for whatever token you need.
How can we tokenize our NFTs on Liquid Collectibles?
1. Go to liquidcollectibles.io
2. Click the “Collections” tab. You will then see the NFT collections list
3. If you haven’t already, connect your wallet at the top right corner, by clicking the “Connect Wallet” button.
4. Choose an NFT collection
5. Click “Your Wallet”. You will see all NFTs you own from this collection.
6. Select the NFTs you want to tokenize
7. If this is your first time selling an NFT from this collection you’ll see an “Approve” button first, make sure to click on it and approve it on your wallet, otherwise, you won’t be able to proceed with the sale. Assuming the approval is now completed and once you’re done selecting the NFTs you want to sell, click the “Sell selected” button and confirm the steps on your wallet.
You are done! You should see your indexed tokens in your wallet! If you have more questions, please come join our social networks to stay up to date.
Telegram main group: https://t.me/LiquidCollectibles
Telegram news channel: https://t.me/LiquidCollectiblesNews
See you next time monsters!