#ERC404 A new Ethereum protocol, currently still in the experimental stage, founded by a programmer with Coinbase background @0xacme A hybrid ERC20 / ERC721 implementation with native liquidity and fragmentation

It allows you to automatically obtain an NFT when you purchase a token. Similarly, when you mint an NFT, you will automatically obtain a token. Through the protocol, you can automatically own a token and an NFT at the same time, realizing the soul binding of the token

What is the value of #ERC404?
This needs to start with the problem of NFT itself. When NFT first became popular, there was always a problem: NFT liquidity problem

The sale of NFT can only rely on the on-chain order book to sell through pending orders, which is very inefficient. In order to solve this problem, different project parties have adopted different strategies. Opensea is a traditional bid strategy, and Blur has built a bid pool, which has improved liquidity to a certain extent. In addition, Sudoswap borrowed from Uniswap and solved it through a liquidity pool, but this strategy is less effective.

#After the ERC404 protocol is generated, if you want to sell, you only need to exchange the token through uniswap, and it is no longer restricted by NFT liquidity

In summary, the value can be summarized into three points:
1) Greatly increase the liquidity of NFT, which is equivalent to token
2) NFT also has mature financial tools, whether it is DEX, CEX, or DeFi, there is more room for imagination
3) Fragmentation is achieved. Users who do not have enough funds to buy one NFT can also enjoy the benefits brought by the project growth by purchasing part of it.

#Problems with the ERC404 protocol

Currently it is open source, experimental, and unreviewed, so there may be certain risks. There is also an obvious problem, which is the high gas fee. When buying tokens, there is also a minting operation. If there is fomo on the chain, the gas for a single swap may be 0.1~0.2E.

$RUG#DEFROGS#dogwifnft has been released today. I believe that more projects with 404 protocol will appear in the next few days. Whether it is a groundbreaking innovation or a bubble, we will continue to observe and wait and see.