CoinMarketCap takes a deep dive into another emerging NFT marketplace.
What Is Polkarare?
Non-fungible tokens, or NFTs, continue to gain global momentum. Dozens of projects compete for traction across the different blockchain ecosystems. Unfortunately, that causes a fractured industry, rather than one capable of complementing new projects. If the mainstream is to embrace NFTs in the future, there needs to be a more streamlined overview of what the industry offers.
As there are numerous blockchains with viable and competitive NFT projects, aggregating them all into one ecosystem will prove beneficial. Furthermore, it makes it easier for novice and experienced users to discover new NFT opportunities without worrying about switching between blockchains.
What Is Polkarare (PRARE)?
Polkarare, an innovative NFT platform built on Ethereum and launched in Q1 2021, wants to bring more positive attention to the non-fungible token industry. Its cross-chain approach across the major blockchains for NFTs is a crucial step in the right direction. In addition, Polkarare provides innovative features, including NFT-collateralized loans, a multichain NFT marketplace and an NFT price discoverability protocol.
The Polkarare vision is the outcome of multiple, like-minded individuals coming together. All advisers to the project have experience in marketing, blockchain development, NFTs, decentralized applications (DApps) and angel investing. With this expertise, the team aims to make Polkarare a powerhouse in the world of nonfungible tokens.
Moreover, the project puts a different spin on NFTs by adding more functionality to them. Rather than creating digital artworks or collectibles, Polkarare lets users put NFT assets up for collateral to loan or offer loans to others. Bringing NFTs into decentralized finance (DeFi) creates new opportunities to explore.
Other features to look out for with Polkarare include staking rewards, NFT farming and exclusive NFT drops. In addition, the platform's native token will offer utility through governance rights and act as a medium of exchange. Its overarching goal is to make NFTs more usable across different platforms and give them extra use cases to incentivize broader adoption and use of this technology.
How Does Polkarare Work?
Per the Polakrare roadmap, a lot of work has gone into the architecture design of this cross-chain NFT platform. The team also developed a prototype in Q1 2021 to help them complete a seed round. Finally, in Q2 2021, the team conducted an initial DEX offering (IDO), introducing support for staking and integrated wallets, successfully deploying the Polkarare testnet. A few weeks later, Polkarare's mainnet went live and the first version of the rewards program kicked in.
Over the coming months, the team is set to focus its attention on rolling out NFT farming, NFT-minting application programming interfaces (APIs), an improved reward program and social features. Support for additional trade currencies is also on the roadmap, as are the NFT loans and price discovery protocol features to launch in Q4 2021. Both mobile support and the project's governance portal are under development as well.
What Makes Polkarare Unique?
In order to create a competitive, viable and appealing NFT ecosystem, Polkarare aims to connect the popular NFT-oriented blockchains and unlock new use cases for its users. These use cases include:
Multichain NFT Marketplace
In the current NFT landscape, marketplaces reside on individual blockchains that are unable to communicate with one another. However, the Polkarare marketplace has native cross-chain support with social features, gasless transactions and support for 3D art galleries.
Multichain NFT Wallet
Building a marketplace for cross-chain nonfungible tokens is only the first step. Polakrare aims to let users store their assets securely in a non-custodial multichain wallet. It is not just a wallet for NFTs, it has built-in support for digital assets across Polkadot, Ethereum, Polygon and Binance Smart Chain.
NFT-Collateralized Loans
As DeFi — specifically crypto lending and borrowing — gains more traction, there is room for using different types of assets as collateral. Polkarare leverages NFTs as collateral for loans or to lend money to other users. Doing so brings more versatility to nonfungible tokens.
NFT Price Discoverability Protocol
Currently, no one can accurately determine the value of NFTs. Polkarare solves this by introducing a price discoverability protocol that leverages proprietary models, determining the realistic value of one's nonfungible tokens.
3D Content Support
As digital artwork continues to evolve, there will be more intricate offerings. 3D technology seems to be the next frontier for NFTs, even though few platforms openly support it. Polkarare acknowledges the potential for 3D NFTs and will ensure that this type of content is supported by the project in Q4 2021.
Polkarare is designed to be governed by its community members who hold the native PRARE token. A governance portal for the project is currently in development and will be released in Q4 2021. PRARE is also used for staking rewards, NFT farming and exclusive NFT drops.
How Does Polkarare Compare With Liquidity?
As numerous developers focus their attention on building cross-chain NFT marketplaces, there can be some overlap between projects. Liquidity aims to provide tools for NFT collectors, including using them as collateral for loans and with built-in cross-chain support. However, it focuses on Binance Smart Chain, Flow, Polkadot and Ethereum, whereas Polakrare bridges Ethereum, Polygon, Binance Smart Chain and Polkadot.
Moreover, Liquidity is live on the Binance Smart Chain and primarily caters to artists looking to create unique artwork and users who require NFT oracles. The vision by Polkarare is slightly different, despite the shared focus on NFTs as loan collateral and cross-chain support through other blockchains.
Both platforms have their marketplace ready for use, yet Polkarare provides social features which Liquidity doesn't appear to provide. Unfortunately, the social aspect is often overlooked when digital assets are concerned, even though it is a crucial aspect. Putting a strong focus on this aspect helps differentiate between these two ventures, as their overlap remains somewhat limited.
It is good to see different approaches that work on making non-fungible tokens more versatile and useful. Unlocking liquidity and value across different blockchains can have a positive effect on this nascent industry.
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