B.Protocol goes NFT - an experiment

tl;dr

The main goal of the NFT idea is to bring more awareness to B.Protocol and to liquidations in general across DeFi.
Users in DeFi getting liquidated don’t have to use B.Protocol directly, so it raises awareness as well returning something that may retain value to the user that got liquidated. Since some liquidations could be in the millions, the pieces distributed would be equally rare. The value of the liquidation would dictate the rarity, resulting in an NFT art piece incredibly hard to create, with decent artistic value.

B.Protocol delves into NFT space
  • I like the idea! Let’s go ahead
  • I’d like to discuss it more; [will post reply below]

0 voters

Intro

Originally, the whole idea (of spreading b.pro NFTs throughout the userbase) derived from the notion of ‘Generating and issuing unique BPRO poaps to EOAs that are liquidated by us would be a cool idea to spread awareness’. ‘Consumes contract, amount, and EOA → outputs random BPRO themed art’, by @a7om (⊟→⊞), TragedyStruck (⊟→⊞) (I apologize in case I am missing someone).

Eitan set up a poll, to gather community sentiment, with the end result, that the community favors the option 'search for a reputable NFT artist to make the work for us and to “piggyback” his name to promote it (might be expensive).

Once we have the art, the team can take care of the smart contract stuff and any coding that will be required to add the liquidation tx details etc to the NFT.’

Motivation

Q: ‘So, basically, if someone gets liquidated they get an nft? Like a forever reminder that they got recked?’

A: ‘The idea is to spread awareness, but NFTs that represent a liquidation could also become something intriguing. Since it can take a pretty large loss of capital to create one, there is some possibility that the market will value them. Perhaps even really be worth if done well.’
‘More, it’s something that you ‘earn’ by reaching a certain threshold and the artwork got a portion of the relevant transactional data embedded. Having rarity tiers for those (i.e. $1000 → $9999 => piece #1, $10000 → $99999 => piece #2, etc.), so perhaps a metadata field describing the size of the liquidation.’

Q: ‘I’m confused as to how NFTs add value to the protocol (I would have thought that “growth ideas” would be concentrated on spending time and resources on growing TVL/Partnerships)?’

A: ‘This isn’t what we are doing instead of growing the protocol, we are still working on multiple projects.’
‘People getting liquidated don’t have to use us (B.Protocol) directly - so it raises awareness as well returning something that may retain some value to the user that got liquidated. Considering it would take millions in losses in some cases to create a token with high rarity, the idea is that some people may also attribute value to them. The secondary market creates the value of these tokens, not us. With a reputable artist to help with the project, their added artistic value has merit as well.
Something incredibly hard to create, with decent artistic value, which is unique as a concept, is valuable.’
‘The value of the liquidation would dictate the rarity. The secondary market, may or may not follow suit. That is the gamble, the elaborate bet.’

It potentially makes for a small, medium or big event to celebrate whenever such a NFT has been minted.

‘a liquidation based NFT is the most unique in DeFi and market fit B.Protocol, as well as bringing attention to the protocol for those that don’t already use us.’

Also, as an NFT idea, something along the lines as ‘B.Protocol liquidated me and all I got was this lousy NFT’ would be hilarious.

Next Steps

Basic traits should be decided upon by the community and artist(s). We could then expand the rarity possibilities without much added creative work.
A long term commission contract should be considered in which we price each trait, with the traits being integration specific. Therefore the artist(s) can come and go as they please and each new integration is an opportunity for a new trait and end product.
Come up with a way of distribution, suitable for B.Protocol (Manifold? Manifold.xyz enables web3 creators to have true creative ownership, preserve on-chain provenance, and interoperate with all major NFT marketplaces)

Eitan opened this open spreadsheet, so we can collect a few names and start reaching out to relevant artists. From past experiences with DeFi influencers and celebs, the hardest part is to get their initial attention. So any personal connection will be super helpful.

Additional notes

  • Maybe lock up 5-10-25 BPRO in the NFT as well to give it some intrinsic value (we should consider how much value the B.Protocol community is willing to burn, as we cannot predict what a user will do with an NFT. Could send it to burn address, hide it forever in his wallet and so forth; thus never valorising the NFT)
  • using the BPRO amount in the liquidated acct as generative data along with the liquidation amount. Highest rarity pieces would have both large amounts of BPRO and high liquidation amounts.
  • each piece of NFT artwork has the correlating project embedded, on which the liquidation has been carried out (Hundred, Liquity, Vesta etc.), and the traits coincide with size of the transaction (rarer trait => bigger liquidation for example) and so forth.
  • using a vault infrastructure for distribution, such as unic.ly V2.
  • apply an AI system, such as Midjourney, to create realistic images and art from a description in natural language. (Beta link, here: Midjourney Private Beta)
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