WalletConnect introduced a unique Web3 project. Don’t miss it

WalletConnect is a new project that has attracted investors’ attention. This company offers a decentralized Web3 messaging layer. It also uses an interesting standard to connect blockchain wallets to dApps. The WalletConnect team aims to expand the interoperability of the Web3 space. It will contribute to that goal by providing the best infrastructure and tools for Wallets. Thanks to this project, the latter will deliver an amazing user experience.

Moreover, customers will be able to connect WalletConnect v2 with any blockchain. This project boasts four core components. These are Sign, Auth, Push, and Chat. The first one is a remote signer protocol. People can use it to communicate securely between dApps and web3 wallets. The second one is an authentication protocol. It’s perfect for logging-in blockchain wallets into apps. Push is actually a push notification protocol. It enables apps to notify customers of both off-chain and on-chain events. Meanwhile, Chat will allow wallets to message each other as a direct messaging protocol.

WalletConnect has many benefits. Its team is professional and works hard to achieve its goals. This project will significantly improve wallet-to-dApp interoperability in the web3 ecosystem. After all, the network can easily offer support to more than 150+ cryptocurrency wallets. Besides, users will be able to easily integrate their wallets into WalletConnect with Swift, JavaScript, or Kotlin SDK.

Investors can also join the WalletConnect community to contribute to the project or get answers to their questions. Moreover, the company plans to launch the project’s native utility token soon. The latter will offer its holders additional benefits. Overall, WalletConnect seems to have all the necessary attributes to achieve success in the markets.  

Nifty Apes is also in the spotlight. Why’s that? 

NiftyApes is another project that is currently trending. This decentralized protocol allows customers to take loans on any non-fungible token or collection. The company offers interesting terms. Capital efficiency (returns for capital holders) is typically a priority for traditional debt markets. However, they mostly prefer to forgo allocative efficiency. Such an approach enables loan originators to receive higher returns. But as underlying assets appreciate, existing loans don’t benefit from healthy market competition.

Unfortunately, prospective lenders that want to offer customers better terms are unable to do that when it comes to these existing loans and their collateral. Borrowers attempting to refinance have to contend with a high degree of friction for exposure, and sometimes the loan originator doesn’t allow refinancing.

However, NiftyApes is an NFT collateralized lending protocol. As such, it will establish a new system for more capital-efficient and allocative loans on NFTs. The company plans to apply the Harberger tax concept to do that. It will facilitate a continuous auction, where the participants will bid for the right to the interest earned on each loan instead of private goods. According to the team, always-on auctions will drive value to the borrower. Such a system ensures that lenders will compete to provide the best terms to the borrower throughout the loan period.

Furthermore, if the lender decides to set the terms of the loan below-market, other lenders will be able to refinance the loan at better terms. On the other hand, the lender could lose money by over-valuing the asset if the terms are too high above-market. That will incentivize people to deal fairly with each other. Lenders will have to compete to offer better terms. The winners will gain the right to interest payments, as well as exposure to the underlying collateral.

How does the NiftyApes protocol work? 

This platform is pretty straightforward and easy to use. Lenders must deposit funds in the NiftyApes account. They can passively earn interest in the process. However, at the same time, users will submit signature-based, or on-chain loan offers on individual assets and collection floor terms.

In the meantime, borrowers can enjoy instant liquidity through active loan offers. If both sides come to an agreement, the platform will move a borrower’s NFT into escrow, adding liquidity from the lender to the former’s account. The loan-to-value (LTV) ratio of a loan will improve over time, enabling lenders to offer better terms to the borrower until the latter can manage to return the loan. Thanks to this system, both lenders and borrowers will have incentives to maintain a true market valuation.

NiftyApes offers some great advantages. In this protocol, lenders can initiate escrow by simply depositing their funds and making offers on loans. The platform automatically deposits these funds into the Compound, ensuring their safety. While the funds remain there, the lenders will continue earning industry-standard yield. Such an approach reduces the opportunity cost for lenders while they await the execution of their standing loan offers on NiftyApes.

Furthermore, the company requires lenders to deposit funds as the initial asset in escrow, unlike other P2P lending protocols. According to the team, lenders will be able to deposit a number of stable ERC20 tokens, as well as native ETH or the cToken of any of these assets. The company plans to add support to many other assets in the future.

What about the NiftyApes’ other features?  

One of NiftyApes’ advantages is its flexibility. Unlike other platforms, a lender will be able to withdraw their available balance from their NiftyApes wallet at any time. However, this includes only the value that isn’t in an active loan. Users can choose to withdraw underlying assets or the cToken of that asset.

Moreover, the platform will provide an offer book. The latter is the list of offers available for a loan on an individual token or NFT collection. NiftyApes can execute only one offer at the same time, though. The borrower can select any order from the offer book and ask for its execution, but they will have to choose one order at a time. Still, users can easily switch between offers if they change their minds later.

The company prefers to avoid determining what a Top Offer can be in the book. Landers will make offers, and they can differ drastically. However, borrowers will need to decide whether the offer is for their liking. They can select another offer if they think the price is too steep.

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