Charged Particles Use-Cases
DeFi’s interest-generating qualities combined with provable scarce digital goods like NFTs...Why might you want to add a Charge to a NFT? There are a lot of possibilities.

Configurable Principal

You now can add an intrinsic value to a collectible. Turning this speculative investment into a yield-generating asset - with a scarce NFT attached! A scarce NFT (e.g. Art, Collectible, Virtual Real Estate, In-Game Item, etc.) can now be transformed into a basket holding a number of other tokens.
Yield-bearing aTokens with programmable charge is just one of the many assets that NFTs can hold. Have a number of LP Tokens, Speculative tokens or your own social tokens? Deposit any/all of them inside a scarce NFT — all possible.
Additionally, users can easily deposit tokens / assets into OTHER user’s NFTs. Your NFT now has its own wallet.
Users can easily customize the configurations of their NFTs — Mechanics for your Charged Particles include:
  • Time-Locks. Assets deposited into an NFT are unable to be withdrawn until a certain time period.
  • Charge. If you deposit an asset that’s supported as an Aave aToken — it’s instantly swapped and you can determine how you would like to treat the interest. For example, this charge can be discharged to a different address — the NFT creator, a friend, a charity — your choice!
  • Discharge (removing accrued interest) Configurations.
  • Mass (Principle) Removal Configurations. Charged Particles can also be burned (melted - if configured as such by the creator) to reclaim the underlying DAI + interest in full, destroying the token. Charged Particles, therefore, always have an underlying value in DAI.
Now, with a base intrinsic value, these Charged Particles can be more-easily used as collateral for NFT-Backed Loans, which is a growing niche in the space.
Besides adding value to a previously (lack of) intrinsic value item, there are a number of reasons why this might be interesting.

Programmable Interest / Charge

The real potential is in the accrued interest - the “charge.”
Charged Particles are non-custodial NFTs that can be "discharged" at any time by the owner, collecting the interest from the token.
Based on the amount of "charge" a token has, Smart Contracts and/or Dapps can decide how to handle the token - custom mechanics can be designed around the level of "Charge" a token has.
For example, this charge can be discharged to a different address - the NFT creator, a friend, a charity - your choice!
With Charged Particles, even a portion of that 8% / year could be paid back to the creator of this rare baseball card - giving the creator a constant stream of (interest) income for the NFT Artist (creator) long after they’ve created this NFT Artwork. Royalties paid to the creator in perpetuity until the NFT is destroyed and the value discharged.
The possibilities are endless here.
In gaming, imagine an NFT that represents a Sword - the power of that sword could be dependent on the amount of "Charge" the token has. Or perhaps certain items can only be used once they reach a certain level of charge. You could battle other players battling over the "charge" of a particle - the winner earns the interest from their competitor's particles.
There are 2.7 billion gamers out there, Charged Particles has the potential to eliminate the whole "Pay to Win" mechanic of game items. In many games, “Legendary” items are super powerful AND expensive, giving those who pay the most the best odds of winning. Charged Particles changes this mechanic, so that even a “Common” item can eventually build-up enough power (via its charge) to compete with Legendary items. This can help tilt the odds in favor of those who have held their items longest. Early adopters can earn more power than a late adopter with deep pockets.

Nested NFTs

With the recent unveiling of our nested NFT functionality, users can now deposit other NFTs inside one another, leading a deep well of new creative possibilities. Our partners at The Guild helped us to demonstrate some of what is possible with the release of their incredible NFT, "Pandora's Box" You can read more about this incredible piece HERE. This functionality opens a world of new creative expression for artists, including such ideas as:
  • Bundles
  • Serial Stories
  • Loot Boxes
  • Digital Estate Management
  • Puzzle Boxes
  • In-Game Crafting Tables
  • Rare Collections (transferable in one transaction)
  • Music NFT Albums that release new songs over time
  • Metaverse Parcels that literally contain and own the digital assets within them
And so much more! Not to mention that all of these layers can each be earning their own interest streams.
Have other ideas? Let us know in Discord!
Last modified 24d ago