3. Usage Scenarios

Via ERC-1000, the following primary usage scenarios are envisioned:

3.1 Flash Trade

This feature enables seamless conversion between Non-Fungible Tokens (NFTs) and Fungible Tokens (FTs). When converting from NFT to FT, the NFT is locked, and the FT is minted. Conversely, when converting from FT to NFT, the FT is burned, and the unlocked NFT is transferred to the user's address. Flash Trade facilitates rapid exchange of NFTs for corresponding P tokens and vice versa, reducing liquidity risks. Flash Trade comprises Flash Sell, Flash Buy - Random and Flash Buy - Specific.

Using Flash Sell, Users can efficiently convert their NFTs into 1,000 P tokens. Additionally, through Flash Buy - Random, users may opt to exchange 1,000 P tokens for an NFT randomly selected from the Random Trade Pool. Alternatively, via Flash Buy - Specific, users can swap for a specific NFT from the Specific Trade Pool. Service fees are applicable for both Flash Buy - Random and - Specific. These functionalities are executed within the ERC-1000 contract through randomTrade and specificTrade.

3.2 Consignment

This feature allows NFT assets to be consigned. Users will receive upfront payments in P tokens when consigning NFTs via the ERC-1000 smart contract with fees deducted based on the consignment terms and interest rate. Subsequently, users can redeem their NFTs by repaying the upfront payments previously received or continue listing the NFTs for sale to benefit from potential future price appreciation. This process offers users flexibility and security in monetizing their NFT assets while retaining ownership. Implementation within the ERC-1000 contract is achieved through borrow and redeemOrPurchase.

3.3 Leverage

This feature enables NFTs to be utilised for collateralized borrowing. Leverage allows users to obtain loans of up to 1,000 P tokens instantaneously by using their NFTs as collateral. Protocol fees will be deducted based on the loan terms and interest rate. Users can subsequently redeem their NFTs by repaying the P token loan along with accrued interest. Importantly, NFT price fluctuations do not trigger mid-term liquidation. Implementation of Leverage within the ERC-1000 contract is facilitated through borrow and redeemOrPurchase.