What is Hurricane NFT (NHCT) and How Does it Work? | KuCoin Crypto Gem Observer
2021 is widely known as the year that non-fungible tokens (NFT) became mainstream after an influx of celebrities and high-net-worth individuals entered the space. This mania also saw leading firms like Visa embrace NFTs. As a result of widespread adoption, the industry recorded a volume of approximately $25 billion by the end of 2021, up from $94.9 million in 2020.
Ethereum was the first blockchain network to host NFTs. However, the frenzy attracted more chains, including Binance Smart Chain (BSC), Solana, Tezos, and Avalanche, to mention a few. Although Ethereum remains the largest NFT network thus far, the new entrants offer benefits, such as low gas fees, which foster NFT adoption.
However, most NFTs lack ample liquidity and value capture abilities, a shortcoming that has inhibited the liquidity in NFTs. To address this issue, HurricaneSwap plans to launch the Hurricane NFT Market on Avalanche to enable cross-chain NFT trading.
How Does Hurricane NFT work?
Hurricane NFT aims to offer users a high-performance, low slippage, low-cost, and seamless cross-chain trading experience for NFTs. The project achieves this feat by leveraging cross-chain technology to combine NFTs with decentralized finance (DeFi) liquidity. The project then integrates the NFT trading market into the DEX and liquidity engine network.
In doing so, Hurricane NFT will position itself as a platform for NFT enthusiasts, collectors, and users. The platform’s users can leverage the self-reinforcing and innovative ecosystem and NFT cross-chain transactions to get meaningful innovation.
The Roke Protocol, an LP bridge that allows users to trade NFTs on different blockchains without leaving Avalanche, will bridge multi-chain NFT investments in the Hurricane NFT Market.
Cross-chain transactions will be completed through NFT vouchers. After buying NFTs on other chains, users will get an NFT voucher, which represents the rights and interests of a specific NFT.
If a user wants to get the NFT they purchased, they will have to burn the NFT voucher they received. NFT vouchers will also have the ability to be split into different NFTs that can be traded on the Hurricane NFT Market.
By fragmenting NFTs, collectors would help increase the sustainable liquidity of the NFT market. They would also reduce the transaction and trust costs on both ends.
To increase NFT liquidity, Hurricane NFT seeks to financialize NFTs through Lending Pool and Peer-to-Peer models. The project also plans to make NFTs a credible investment product by integrating an array of DeFi derivatives, such as NFT fragmentation protocols, NFT insurance, fixed interest, and options, to mention a few.
What Makes Hurricane NFT Unique?
Unlike conventional NFT marketplaces, Hurricane NFT will let users trade NFTs on multiple chains, including Ethereum, Polygon, Solana, BSC, and Fantom, among others. Cross-chain interoperability will eliminate the hassle of moving NFTs across different blockchains, allowing users to save time and costs.
Moreover, the Hurricane NFT will be governed by a decentralized autonomous organization (DAO) powered by the Hurricane NFT Token (NHCT). DAO governorship will help put the platform’s control in the hands of its community instead of a single centralized body.
The Hurricane NFT Market DAO members will vote on proposals for future development, cross-chain NFT publishing, and marketing activities, among other issues. Apart from serving as a governance token, NHCT would offer holders benefits like transaction fee discounts and dividends from transaction fees, among others.
Hurricane NFT aims to launch on Avalanche due to the blockchain’s unique design. The network features three built-in blockchains, Exchange Chain (X-Chain), Platform Chain (P-Chain), and Contract Chain (C-Chain). These chains help simplify conversions and development.
Avalanche has also attracted many users to become among the top-6 global public chains. The network’s DeFi ecosystem has already handled tens of billions of dollars. As such, Avalanche will provide the Hurricane NFT with access to a mature technical layer, a broad user base, and funds.
Who Created the Hurricane NFT?
Hurricane NFT was created by Singapore-based company HurricaneSwap, the first Avalanche-based decentralized cross-chain trading protocol. James Lindesay and Symington Smith co-founded the company in 2020. Smith serves as the company’s Chief Executive Officer (CEO).
Hunter Cheung is the company’s Chief Technology Officer (CTO and the first author of the Roke protocol. Ted Yin serves as HurricaneSwap’s Chief Advisor. He is also the co-founder and Chief Protocol Architect of Avalanche.
Closing Thoughts
By serving as a cross-chain liquidity DEX, Hurricane NFT opens up a world full of opportunities for NFT holders, allowing them to trade NFTs seamlessly and at low costs. The platform’s DAO governance model also helps return power to the masses, enabling them to take part in creating a platform that meets their needs.
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