In the ever-evolving landscape of cryptocurrency and blockchain technology, a novel concept has emerged, blurring the lines between traditional fungible tokens and non-fungible tokens (NFTs). At the forefront of this innovation is ERC404, a hybrid token standard that combines the best of both worlds - the liquidity of ERC20 tokens and the uniqueness of ERC721 NFTs.
“ERC404 is an experimental, mixed ERC20 / ERC721 implementation, with native liquidity and fractionalization” - 0xacme github.com/0xacme/ERC404 (creator of ERC404)
DeFrogs, (defrogs.com) the pioneering implementation of ERC404 as a PFP project, introduces an intriguing paradigm shift in the crypto space. With 10,000 tokens and corresponding NFTs, DeFrogs offers people active in the blockchain space a unique opportunity to delve into the realm of hybrid assets.
But what exactly does this mean? When purchasing a DEFROGS token on Uniswap, you not only acquire the token itself but also receive a DeFrogs NFT generated through a mint contract. These NFTs, with their inherent rarity traits, add an element of excitement and unpredictability to each transaction.
DeFrogs FAQs
Q: What happens if you buy 0.9 DEFROGS?
A: You WILL receive the tokens, but you WILL NOT receive the NFT.
Q: What happens if I buy 0.9 DEFROGS and then 0.1, totaling 1 DEFROGS?
A: Once your wallet owns 1 DEFROGS token, an NFT will be automatically minted into your wallet.
Q: If I own 3 DEFROGS tokens, how do I know which NFT I will sell if I were to sell 1 DEFROGS token on Uniswap?
A: The best move here would be to sell the DeFrogs NFT on OpenSea that you don’t mind getting rid of, and then the token will automatically be sold along with that. This way, you don’t sell your rare DeFrogs NFT.
Q: What happens if I transfer the NFT and not the token?
A: Transferring the NFTs will not affect anything. So if you have, say, one rare and one common, move the rare to a separate wallet and then transfer/sell/buy the token in the same manner. If there are any comments on this post, I’ll try to add more FAQs to this section.
More Info On DeFrogs TG : @DeFrogs
The versatility of ERC404 becomes evident when considering the implications of buying and selling DeFrogs tokens. Whether trading on Uniswap or OpenSea, traders have the flexibility to navigate between tokens and NFTs, strategically leveraging their assets to maximise returns. Example: you buy DEFROGS tokens, get a DeFrog NFT and see it has very rare traits, you can then proceed to sell your rare NFT for a higher price than the price paid for your tokens and use that to buy even more DEFROGS tokens
As with any innovative concept, questions and uncertainties abound. Yet, the potential of ERC404 and DeFrogs to revolutionise the DeFi and NFT landscapes is undeniable. From increased liquidity to fractionalization of assets, the possibilities are vast and intriguing.
While the future of ERC404 remains uncertain, one thing is clear - this experiment in hybrid tokenization has captured the imagination of industry insiders and enthusiasts alike. As the ecosystem evolves and matures, the true impact of ERC404 and its derivatives may unfold, paving the way for a new era of blockchain innovation.
I anticipate a significant surge in the release of ERC404s in the upcoming weeks, spanning a wide range of varieties. Larger supply tokens, such as those comprising 1,000,000,000 tokens with corresponding amounts of NFTs, hold particular intrigue and I'm intrigued to see what is to come.
However, caution is advised as we navigate this uncharted territory. While opportunities abound, there may also be instances of rugpulls. Many teams are currently dedicated to developing the infrastructure surrounding this concept and preparing for the launch of early betas in the near future. Stay tuned as we explore these developments in the coming weeks.
