MonaLisa NFT

MonaLisa NFT serves as a DeFi platform solution providing not only selling, buying, and exchange services, but also secure peer-to-peer digital asset lending.

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Inspiration

Non-fungible tokens (NFTs) are a red-hot asset class in crypto. From the budding NFT creator to the collector, the growing economy NFTs have pioneered cannot be ignored.

Problem Statement

According to SkyQuest Technology, the Global NFT Market was valued at USD 15.70 Billion in 2021, and it is expected to reach USD 122.43 Billion by 2028, with a compound annual growth rate (CAGR) of 34.10 % during the forecast period of 2022 - 2028.

Current service providers exist either marketplaces like OpenSea, Rarible, and Minty.Art, as well as P2P lending intermediaries such as Arcade & NFTfi. Yet, the recent recession has emphasized current systematic risks faced by both segments:

Liquidity Risk

One of the greatest impediments to NFTs is the lack of liquidity. As a non-fungible asset, there is no guarantee of a consistent demand for artwork. This is further exaggerated when the only way to receive ROI is through selling the NFT.

Volatility Risk

Reliance on cryptocurrency comes with inherent risks. As currency fluctuations rock, so do the valuations of NFTs. This is further compounded by external factors such as:

  • Collection Scarcity and uniqueness
  • Sudden Fluctuations due to popularity

What it does

MonaLisa NFT serves as a one-stop-shop solution for NFT market participants, with goals to equip your next door neighbor with the ability to not only sell, buy, and exchange digital assets with ease of mind, but also securely participate in peer-to-peer digital asset lending.

How we built it

We built this project using React and Next.js for the front end, solidity for creating smart contracts, Moralis to build our dApp with authentication to web3 wallet Metamask, and testnet for testing.

Challenges we ran into

Our team came to learn about decentralized finance, so we had to review and synthesize a lot of new information and understand new concepts in a short amount of time.

Accomplishments that we're proud of

We built our first smart contract and NFT marketplace!

What we learned

We learned about the various considerations when it comes to lending on blockchain.

What's next for MonaLisa NFT

We would fully implement the features mentioned to address liquidity and volatility risks.

  1. Execute and Launch our lending architecture to further address the liquidity risks the NFT ecosystem currently faces.

  2. Tackle volatility risks associated with producing accurate valuations by Implementing vendor NFT value estimators. Arming lenders with the necessary information to make investment decisions

  3. Incorporate risk assessment tools such as displaying transaction history of the NFT (previous owners, dates, transaction costs), and owner credit history.

  4. Introduce sidechain to secondary transactions to reduce user costs such as live gas prices

  5. Establish stablecoin support. Providing flexibility to investors to use stablecoins as a means to purchase NFTs provides a hedge against volatility risks associated with cryptocurrency.

  6. Implement and Launch a mint-from-scratch feature. (Being a labor intensive task and having exposure to further risks such as authentication during onboarding, we’ll add to further protections to the platform as we discover new metrics to assess).

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