Update/The crypto asset protocol paradigm revolution is coming, #ERC404 opening Pandora’s box. The following are some simple explanations, hoping to make it easy for friends to understand.

1/The new protocol presents the "duality of graphics and currency". The protocol itself integrates the dual characteristics of ERC721 and ERC20 assets. The NGT market and DEX do not even need to be classified under this label. Yes, for the same asset, if you open the NFT market you will see the picture, and if you open the DEX you will see the Token.

2/Actually, this is an NFT liquidity revolution. How significant is revolution? To put it more simply, it can be said that coins are issued when pictures are issued. More dApp applications, GameFi games and even Layer 2 networks will issue ERC404 assets similar to Pass cards. In this way, once the NFT is issued, it is equivalent to a direct airdrop of Tokens.

3/NFT market will next become a new entrance to the ERC404 asset launchpad. However, it will inevitably need to be embedded in the DEX scenario or call the SWAP protocol. There is no dispute. The powerful NFT market, DEX and aggregators will accelerate their integration, and the boundaries of the original Web3 trading platform will gradually blur.

4/ By the way, I almost forgot to mention that the NFT lending protocol, fragment protocol and other efforts to provide liquidity for NFT assets will complete the historical mission.