The NFTX platform creates liquid markets for illiquid Non-Fungible Tokens (NFTs). A user deposits NFT into an NFTX vault and a fungible ERC20 token (vToken) is minted that represents a claim on a random asset. You can also use vTokens to redeem a specific NFT from a vault.

NFTX is a decentralised platform that creates tokenised NFT index funds, allowing users to gain exposure to NFT collections without owning individual assets. Built on Ethereum, it enables the minting of vault tokens (like NFTX’s PUNK or BAYC tokens), which represent fractional ownership of pooled NFTs from popular collections like CryptoPunks or Bored Apes.

Users can deposit NFTs into vaults to mint these tokens or redeem them for underlying NFTs. This system improves liquidity for otherwise illiquid NFTs, letting traders speculate on collection values without high entry costs. NFTX also supports yield farming, where users earn rewards by providing liquidity.

By combining DeFi and NFTs, NFTX offers a novel way to invest in digital collectables, making the market more accessible and efficient for traders and collectors alike.