Potential new narrative leader dropped the other day which could change how NFTs are designed & traded Yet I see very little chatter on the timeline about it. Either ppl are unaware, they don't understand its implications, OR they decided to fade it in order to chase the 100th AI or LRT coin... I'll try to briefly explain it below 👇 1⃣ PANDORA It's important to note that I'm still wrapping my head around this and I might get some stuff wrong, but I'm also trying to explain it in layman terms so that it's easier to understand. @Pandora_ERC404 launched a new token standard - ERC404 - which combines ERC 20s and ERC 720s (basically tokens and NFTs) into one implementation. It creates NFTs that have native fractionalization & liqudity and could potentially change the game for how NFT collections are designed & traded. It’s also novel, unaudited and experimental, so be aware that there is a scenario here where this gets exploited. 2⃣ WHAT IS IT It’s a 10,000 NFT collection of so-called Replicants; The ERC-404 standard also “attaches” a token to each NFT. The way it works is relatively easy to understand but with a lot of nuance. Let's look at it from both the Token and the NFT perspective. The TOKEN: 👉 Every time you BUY a token from the Uni v3 pool, an NFT also gets minted in your wallet 👉 Every time you SELL a token into the pool, your NFT gets burnt. 👉Every MINT of a new NFT randomizes its traits; 👉Every time you send tokens from one address to another, the protocol will burn and mint new NFTs (therefore randomizing traits). THE NFT 👉The ONLY situation in which the NFT is not randomized is when you buy/sell the NFT itself. 3⃣ WHY IS THIS FASCINATING? You basically have a 10,000 NFT collection where you buy and sell the NFTs themselves It has traits, rarities, scarcity → NFTs can be priced accordingly based on these factors ❗️BUT! every NFT also has a token associated to it with significant liquidity in the Uni v3 pool... so in essence you always have fat liquidity around the floor price of your NFT collection you can sell your NFTs anytime, as many as you want, extremely fast, since you just sell your tokens into the Uni v3 pool (and the NFTs get burnt)... 👉this is the equivalent of selling your NFTs at floor price ❗️However! if you want the upside from the perceived rarity of the NFT, you sell the NFT itself (more time consuming, but you get the premium) 4⃣ THE NEXT EVOLUTION OF NTF TRADING? as @maybectrlfreak put it, Blur “revolutionized NFT liquidity with bids” → however that is not native liquidity Pandora gives persistent liquidity to NFTs via AMMs, allowing “hyperfinancialization of NFTs” and a lot of potential new use-cases and approaches It remains to be seen if this takes off - it's obviously early and very novel; and hence has a higher probability of getting exploited but it also has crazy potential imo also, just a bit of context to wrap this up: 🔹this project came as a result of the Emerald exploit => experienced team coded their own version, put it out in 1-2 days of intense work and launched it 🔹docs are in the making, website is in the making and all information you basically get by chatting in the telegram with the founder 🔹it's precisely this information asymmetry that gives the most potential outsized returns - especially when this is coupled with a potential new narrative (and the first mover within that category) There is a ton more to cover on: 👉the scarcity of the NFTs & art 👉tokenomics 👉 launch, price action, overall awareness of the project 👉game theory behind it 👉team, background of the project but I will leave that for another thread make sure to join the telegram, ask questions and mint some NFTs!