It surged 27 times in a week. What is the ERC404 protocol that the OGs on the Internet are climaxing with?

Source: Followin

In the past two days, a niche project has made OG players "climax", especially NFT players, who feel that it is likely to save the mired NFT track.

This project is called Pandora, Pandora, a 10k NFT project. No, a token...well, it doesn't seem right.

In short, judging from the data, the price of one a week ago was US$200 and is currently at US$5,600. About 27 times more.

As of the publication of this article, the liquidity of the PANDORA pool is approximately US$15 million, the 24-hour trading volume is US$27 million, and the market value is US$54 million.

What is the ERC404 protocol?

To talk about PANDORA, we must first talk about what is the ERC404 protocol?

Official information describes ERC404 as an experimental, hybrid ERC20/ERC721 implementation with native liquidity and fragmentation.

This is very abstract. In plain English, this protocol allows NFTs to be split and traded like tokens, a token swap protocol.

Imagine that ownership of an expensive, illiquid blue-chip NFT like PUNK could be traded as a liquid asset on mainstream exchanges, just as if it were a regular token assets such as ERC20.

This means that the ERC404 protocol solves the liquidity problem of NFT. However, it is different from the fragmented method of solving NFT liquidity that has been popular for some time. The ERC404 protocol can combine the tokens into one, but they can be bought and sold separately at the same time.

Let’s take a look at the official more hard-core and obscure explanation: Although the two standards are not designed to be mixed, this implementation strives to be as robust as possible way to achieve hybridization while minimizing trade-offs. In current implementations, ERC404 effectively isolates the ERC20/ERC721 standard logic, or introduces paths where possible. Path can be best described as a lossy encoding scheme where the token count data and the ID occupy a shared space, assuming that negligible token transfers occupying the ID space will not or need not occur.

This new conceptual standard is entirely experimental and has not yet undergone a full external review. And due to the overlapping nature of standards, most integration protocols don't yet fully understand their hybrid capabilities.

Currently, the ERC404 protocol is completely open source. Therefore, developers can either release their own projects based on the protocol or conduct secondary development of the protocol based on existing protocols.

It sounds very beautiful, but I have to say that the project is very early.

First, the ERC404 standard has not yet passed the review of the ERC standard protocol. To become an ERC standard protocol, you need to go through the process of EIP proposal, experimentation and demonstration, review and review, community participation, documentation and specifications. Currently, ERC404 should be in the second and third stages. To add some information, there are currently 391 ERC standard protocols, among which the only protocols related to NFT are the familiar ERC-721 and ERC-1155.

Second, there is no official website, only the Telegram group.

Third, only some OG players are sharing.

Currently, we have not seen the project team, only information that the project was developed by former Coinbase engineers.

What is the skyrocketing PANDORA?

Pandora is the first project built based on the ERC404 token standard, a 10k NFT project corresponding to 10k PANDORA ERC20 tokens.

Buying a PANDORA means the NFT is minted and automatically appears in the wallet, selling the token means the NFT is destroyed. Transferring tokens is also a process in which the NFT is destroyed and re-minted. However, transferring NFT will not bring about changes in the NFT.

This means that you can sell your NFT to Uniswap's liquidity pool without having to wait on the trading platform like mainstream NFT transactions.

However, this Pandora's NFT has 5 rarity levels. If you particularly want to hold an NFT of a certain rarity, then buy the NFT directly. If you don't care about the rarity of the NFT, the NFT automatically synthesized by purchasing the token will display its corresponding rarity.

"We believe this is more than a novelty. Pandora demonstrates the potential of ERC404 as a token standard, enabling long-lasting native liquidity and future NFTs Fragmentation of the collection." said the project side.

What features do you think of Pandora? Yes, it’s a bit like Solana’s recent hit project NUTS, right? In fact, early players nicknamed Pandora the NUTS of Ethereum.

According to data from Dextool, as of the time of publication, the price of PANDORA tokens is US$5,465, the liquidity of the pool is approximately US$15 million, and the 24-hour trading volume is US$27 million. The market capitalization is US$54 million.

Judging from the recent growth rate and market value, it is scary + very expensive.

More information shows that as of press time, the BingX exchange has launched the Pandora token in the form of a global debut.

In addition to Pandora, the official "proofing" project, based on the ERC404 protocol, some new projects have begun to follow up. The first project forwarded by the official is ANON.

How will ERC404 and Pandora develop? Can you participate?

ERC404 protocol, its narrative is very "charming", it can carry out fragmented transactions of NFT, solving the long-standing problem that has caused headaches for the entire NFT track. Combined with the performance of the already popular Peanuts NUTS, the concept of coin duality is likely to have a small explosion.

In overseas communities, some people also see the possibility of development and iteration based on ERC404, which makes them very excited.

Some OG shared the view that this agreement allows NFT to naturally possess the attributes of NFT-Fi.

Twitter account @rickawsb commented: The native combination of graphics and currency instantly adds another dimension to asset gameplay. We may see more ideas soon. This may be the most important NFT protocol innovation on Ethereum in the past two years!

KOL @haze0x said that market charts and coins are the two largest in the currency circle. The liquidity of the two is integrated, and what applications will be born next. And as the underlying protocol standard, how much will it be worth? I don't know, but I was shocked. Start experimenting with token swaps to further release the two-way liquidity of NFT and Token. This is an iterative innovation of cognition and thinking, incorporating the broadest group of people into a project and looking forward to the wealth effect.

The well-known investment research account First Class published an article saying that it is quite fun. It is still in a very early stage and I recommend everyone to pay attention to it. Everyone, please be careful when taking orders. I'm already in the car anyway.

Remind us again that this project is still in its early stages and has not yet been audited by a professional organization. Please carefully evaluate transaction risks.