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Pi-NFT: Unlocking the potential liquidity of Illiquid Real-world Assets

4 min read
|
September 28, 2023

Liquidity, at its essence in finance, denotes the ability of an asset to be swiftly transformed into cash without causing any substantial change in its value. Yet, there exists a multitude of real-world assets like unique pieces of art, rare collectibles, luxury watches, business leases, or even certain real estate properties, which often remain trapped in the clutches of illiquidity. 

This is where Aconomy’s Pi-NFT steps in, offering a tangible solution and bringing a transformative approach to the liquidity challenges of real-world assets. By eliminating the traditional limitations like multiple intermediaries, time-consuming paperwork, limited access to buyers, and more, Aconomy’s Pi-NFT opens doors to innovative ways to utilize, and engage with assets while enjoying the liquidity of their assets that once had no liquidity in the traditional market; making it a cornerstone for the next era of asset ownership on-chain! 

Pi-NFT: Transforming Illiquid Assets into Liquid

The concept of Pi-NFT offers a transformative solution for asset owners of illiquid assets or assets with latent liquidity. With Aconomy's inbuilt tokenization engine, real-world assets can be brought on-chain as asset NFTs, which after validation can then be seamlessly converted into Pi-NFTs with induced liquidity.

For this transformation, asset owners need to send their asset NFTs to a designated asset validator for verification. The Asset Validators - trusted entities like asset-specific institutions, organizations, or individuals with asset expertise that are KYCed by the Aconomy’s Ecosystem - will ensure the credibility and value of asset NFTs through a comprehensive evaluation and verification process. Once the asset is authenticated and validated, the asset validator can solidify their trust by staking tokens as collateral in asset NFT to convert them into Pi-NFT. The amount staked serves as a testament to the validator's faith in the asset's legitimacy and authenticity of documents submitted by the asset validator. This additional layer of assurance, backed by the validator's collateral, provides potential users and investors with a clearer signal of the asset's credibility, thereby enhancing their confidence to invest in these Pi-NFTs.

Besides this, validators have the flexibility to stake an amount reflective of their confidence and asset expertise, whether it's below, equal to, or above the actual asset value assigned by the Asset Owner. Moreover, the validator’s staked fund can act as a borrowing amount for the asset owner. The asset owner can withdraw the funds (validator collaterals) from the Pi-NFT and enjoy the newfound liquidity till the validation duration. This innovative process allows you to utilize assets that once had no liquidity in the traditional market. Whether you plan to make other investments or have different financial needs, withdrawing liquidity from your Pi-NFT provides a practical way to access and utilize your assets. Not only this but as an asset owner, you are exclusively allowed to list your Pi-NFT on the Aconomy Marketplace. While it cannot be put up for sale as a mere asset NFT, its transformation into a Pi-NFT unlocks Aconomy's extensive trading features. This includes options like selling, lending, borrowing, auctioning, and even swapping, letting you fully realize the potential of your assets.

Unique Features of Pi-NFT

  1. Integration of Real-world Assets on-chain: Unlike traditional digital tokens that may not have tangible backing, Pi-NFT is backed by real-world collectibles. By representing tangible, real-world assets on-chain, the value of these assets is anchored in concrete items or properties, offering both the immutability of digital tokens and the security of real-world value.
  1. Validator-Backed Assurance: Validators play a crucial role in the creation of Pi-NFT. By staking their validator collateral (if required) in USDT in asset-NFT, they not only vouch for the asset's authenticity but also its appraised value. Moreover, it provides an additional measure of trust and confidence for users and investors, as they can see a clear demonstration of the validator's commitment to the Pi-NFT's legitimacy.
  1. Instant Liquidity: The traditional route of liquidating valuable assets could involve lengthy appraisal processes, finding buyers, and navigating complex regulatory pathways. Pi-NFT sidesteps these challenges by enabling asset owners to withdraw the validator collaterals from the Pi-NFT within the validation duration period by giving the access of the asset to the validator till the said time, thereby granting asset owners the ability to swiftly unlock and access their asset's worth without the traditional hassles.
  1. Transparency and Immutability: Every Pi-NFT transaction, from its creation to trading, is recorded transparently on the blockchain. This ensures that all participants can audit the history and origin of a particular asset, fostering a tamper-proof and unalterable record that adds layers of trust and confidence.
  1. Democratization of Asset Ownership: Pi-NFTs have transformed the investment landscape by making traditionally high-value yet illiquid assets more accessible. By lowering the entry barriers, Aconomy enables a broader spectrum of investors to participate and make a choice to invest in any of the assets. This shift not only diversifies the investment pool but also fosters a more inclusive financial ecosystem, allowing more individuals to harness the benefits of such assets.

In essence, the standout feature of Pi-NFT is its unique blend of innovation, security, and utility. It offers a contemporary solution to age-old liquidity challenges, ensuring assets are not just stored value but can be actively leveraged whenever the need arises.

Pi-NFTs: The Future of Decentralized Asset Liquidity

The evolution of the financial landscape is inevitable, and Aconomy's Pi-NFT is a testament to that trajectory. By addressing the age-old liquidity challenge, it does not merely offer a solution but revolutionizes the very paradigm of asset management. In an era where agility and flexibility are paramount, the ability to seamlessly unlock the value of real-world assets represents a significant leap forward.

Aconomy’s Pi-NFTs underscore the confluence of technology, trust, and transparency. They not only democratize asset ownership but also foster a more inclusive financial ecosystem. Pi-NFT emerges as the harbinger of a new era in asset management – one that is efficient, transparent, and most importantly, accessible to all. It’s not just a new Liquid NFT in the market; it's a movement, the future of a decentralized world.

… 

Aconomy is a real-world asset-backed DEX that aims to tokenize real-world assets with its cutting-edge technology. It benefits both asset validators and asset owners by empowering them to trade assets on a decentralized exchange, which provides increased accessibility and liquidity.

We at Aconomy are always on the lookout to connect with like-minded individuals, strategic collaborators, and partners who wish to be part of our Aconomy journey. To get in touch, please feel free to reach out to us on

Aconomy | $PNDR | Twitter | LinkedIn | Telegram or shoot us a mail: support@aconomy.io

FAQ’s

Answers delivered. Can't find a solution you're looking for? send us a mail over support@aconomy.io

What is Pi-NFT, and how does it address the liquidity challenge of real-world assets?

Pi-NFT is a solution designed to transform illiquid real-world assets into liquid assets. By tokenizing these assets on-chain as asset NFTs and further converting them into Pi-NFTs, it overcomes traditional challenges like intermediaries, limited access to buyers, and more thus providing asset owners with enhanced liquidity for assets that were previously hard to liquidate.

How is the authenticity and value of a real-world asset verified before it becomes a Pi-NFT?

Asset owners send their asset NFTs to Asset Validators, who are trusted entities with expertise in specific assets. These validators perform a thorough evaluation and verification of the asset's credibility. To further ensure trust, validators stake tokens as collateral in the asset NFT, which acts as a testament to their belief in the asset's authenticity and the accuracy of the provided documents.

How do validators benefit asset owners, and what flexibility do they have?

Validators play a pivotal role by staking an amount in the Pi-NFT reflective of their confidence in the asset's value. This staked fund can be accessed by the asset owner as a source of liquidity. Additionally, the amount staked can be below, equal to, or above the actual value set by the Asset Owner.

What distinguishes Pi-NFT from traditional digital tokens?

Unlike many traditional digital tokens that might not have tangible backing, Pi-NFTs are directly backed by real-world assets. This offers the dual benefit of the immutability of digital tokens while securing the value in tangible real-world assets.

How does Pi-NFT ensure transparency and trustworthiness?

Every transaction involving a Pi-NFT, from its creation to its trading, is recorded on the blockchain, ensuring full transparency. This tamper-proof and immutable record enhances trust and confidence in the asset's history and origin.

About Aconomy

Aconomy is a decentralized asset tokenization platform that empowers individuals to seamlessly tokenize and trade their real-world assets on-chain. With a vision to foster a parallel on-chain asset economy, Aconomy enables its users to tokenize real-world assets ranging from vintage watches and luxury art to rare books. As an asset tokenization company, Aconomy is revolutionizing interactions with tangible assets by democratizing on-chain asset ownership through the dematerialization of RWAs. With the focus on enhancing liquidity in real-world asset classes, Aconomy enables the asset validators to stake their validator collateral (if required) in USDT in asset-NFT to not only validate & vouch for the asset's authenticity but also transform them into Pi-NFT (with 1:1 backing & induced liquidity). This transformation opens up a pathway for numerous asset trading opportunities on-chain like selling, auctioning, lending, swapping, and redeeming  -  all in a secure and transparent manner, which are not often available in the traditional economy.