# NFT Usecases

In the near future, art will be only a segment of NFT usage and may be more common that the NFTs wiill be representing financial assets

## NFTs as:

* Art & collectible
* NFT DeFi
* Game asset
* Metaverse
* Utility & DAO

Uniswap V3 for example uses NFTs for their liquidity provider positions, on KeeperDAO lending positions are encapsulated as NFTs, and on Alchemist an NFT is used for customer wallets.

### Marketplace for collateralized loans

* Lend NFT
* Take out a loan in ETH
* Payback
* Get your NFT back

<https://nftfi.com/>

### Data Structure

"NFTs themselves aren't the images uploaded to a blockchain. The images can be stored on a decentralized network, or a centralized network. The NFT is just a data structure (token), and links to a metadata file, which in turn may be pinned to an image (or other file type)" - Colin Platt

Controller of the contract that the NFT metadata and token data structure holds can modify the artwork by reuploading it on-chain.

### Art

* NFTs is like autograph from artists
* NFT is something prominent, unique and exclusive
* NFT as creative evolution

### Auctions

**Superfans as LP**

* Community members providing liquidity to the token
* stake your tokens to be apart of the community
* LP tokend grands the access to the community, services, exclusive drops, discord server...

Auction

* At the end of the auction, the highest bid is automatically accepted and the NFT is transferred to the highest bidder’s wallet.
* The number of tokens minted are based on the USD value of the highest bid.
* The NFT + 50% of the fungible token supply are transferred to the highest bidder’s wallet.
* The 50% of ETH received on the collection drop are transferred to the creator’s wallet.
* A Uniswap pool for the fungible token is created.
* The smart contract deposits the respective funds into the pool to bootstrap the community’s token liquidity.

Source: <https://davidtomu.medium.com/a-co-owned-fan-club-7e5b0aece3a2>

## Certificates

Example: an on-chain crypto credential earned for solving a single exercise.\
Non-transferable because it can’t be sold. Fungible because all did the same exercise.

Source: <https://twitter.com/balajis/status/1403354268971634689?s=20>
