Asset Management

Startups

Fungify is a non-custodial NFT index and algorithmic lending protocol, allowing for instant NFT sales, immediate NFT-backed loans, and a yield-bearing NFT index token. With a small set of elegant primitives, Fungify solves the most challenging problems at the intersection of NFTs and DeFi.

The MarketVault primitive allows for automated provisioning of liquidity to NFT holders, whether they are seeking to sell outright, or to use their NFT holdings as collateral for a loan. The MarketVault is capable of permissionless ingesting of NFTs, enabling both a peer-to-contract marketplace and guaranteed liquidation counterparty. Stabilizing this system is an algorithmic interest rate control mechanism that balances demand for liquidity with its supply.
A byproduct of the MarketVault is the first decentralized NFT Index Token, $NFT, which allows investors to gain exposure to a broad set of community curated NFTs at any level of investment without needing to worry about the illiquidity of any individual NFTs. $NFT is strictly better than any existing NFT index alternatives because it also provides staking yields from borrowers. $NFT is fully backed by and redeemable for NFTs held inside the MarketVault, pegging its value to the broader NFT market via arbitrage.

By using the NFT Index Token as a unit of account for loans, the protocol can factor out the volatility of the broader market. This drastically increases the legibility of the system and allows for risk parameters to be agnostic of USD denominated movements in the NFT market. This allows the system to gracefully complement the market, rather than struggling to cope with market shifts.

These components seamlessly mesh together to produce the primitives missing from NFT DeFi, finally unlocking the liquidity of the ecosystem.

Investors

CypherHunter Plus

on Feb 1, 2023, Fungify raised $6 million in a Seed funding round led by CitizenX

Investors

CypherHunter Plus