Unlockd x Wormhole: A partnership to unlock cross-chain NFT liquidity.
Unlockd, the decentralized, cross-chain protocol that provides NFT liquidity while keeping ownership perks, is thrilled to announce our partnership with Wormhole, a generic message-passing protocol that connects to multiple chains including Ethereum, Solana, Terra, Binance Smart Chain, Polygon, Avalanche, Oasis, and Fantom.
One of the main obstacles that Unlockd faces in the challenge of creating a financial structure for the NFT industry and all its derivatives — such as NFT gaming, or metaverse NFTs — is being able to break L1 boundaries.
Web3 ecosystems suffer from evident fragmentation, causing many NFTs to be capped by the protocol or the ecosystem in which they live. Unlockd x Wormhole partnership aims to bridge these gaps and unlock NFT liquidity in an interoperable way.
Wormhole is a cross-chain messaging protocol, secured by a network of Guardian nodes. Their technology allows other applications to be built on top of the protocol. An example is The Portal Token Bridge and Portal NFT Bridge which provide a standard message format for token and NFT transfers across the Wormhole bridge.
Unlockd will leverage the technical architecture created in Wormhole for the transfer of assets information between networks and thus be able to build a complete cross-chain lending protocol.
This integration will allow breaking the value limitations of some collections inherited from the ecosystem and protocol in which they live. The first step we take to materialize this vision is, together with Wormhole, to tokenize NFTs deposited as collateral in other chains so that they can be used as collateral in the Ethereum network and have liquidity and liquidation guarantees through Unlockd.
Unlockd, helped by Wormhole, aims to allow all high-value NFTs to have a financial structure to obtain liquidity from — making each asset more valuable and reducing opportunity costs — regardless of the chain in which they are based.
For the first time, users and organizations that transact in multiple chains will be able to include in their operations the liquidity extracted from their NFT portfolios, which until now only held idle assets. With NFT-backed, cross-chain loans, the pledged collateral and the borrowed tokens may reside in different chains — while providing a smooth and efficient user experience.
Interested in how Unlockd will integrate Wormhole technology? In-depth post coming soon, stay tuned!
About Unlockd
Unlockd is the decentralized cross-chain protocol that provides democratized NFT liquidity and utility for Art, DeFi, Metaverse, Real World and Gaming.
Unlockd provides instant loans and enables seamless cross-chain borrowing and lending, with Unlockd borrowers can compound their wealth with NFT-backed loans while maintaining 100% of ownership perks.
About Wormhole
Wormhole is an interoperability protocol powering the seamless transfer of value and information across 8 high-value chains with just one integration.
Currently, there are two Wormhole features built on top of the generic message-passing protocol. A token bridge that allows users to seamlessly bridge wrapped assets between supported chains and an NFT bridge that allows ERC721 and SPL NFTs to be transferred between Ethereum, Binance Smart Chain, Polygon, Avalanche, Oasis, Fantom, and Solana.
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