Hashmask, the digital art and collectibles project that has taken the expanding nonfungible token (NFT) metaverse by storm is now part of the NFTX index platform. Meanwhile, rare pieces from the Hashmask collection continue to attract massive bids from collectors on marketplaces like OpenSea.
Hashmask LP Pool Now Live on NFTX
Owning a Hashmask now has an added layer of utility following the move by NFTX to create a liquidity provider (LP) pool for the popular NFT on its platform. NFTX announced the news via a blog post issued on Thursday (Feb. 4, 2021).
According to the announcement, Hashmask owners can now deposit their “cards” on the platform as collateral to secure MASK tokens which can be paired with Ethereum (ETH) or any other base “coin” in the liquidity pool on any automated market maker (AMM) platform like SushiSwap.
Detailing the process, the blog post reads:
“The process of becoming a liquidity provider is a fairly simple process and requires you to provide your $MASK token, in combination with a second currency you want to pair it against, to the liquidity pool of an exchange. As ETH pairs are often in highest demand, we will take ETH as an example.”
LP providers can also utilize the redeem function on the NFTX website to withdraw their Hashmasks. Each MASK token is backed 1-to-1 with a distinct Hashmask in the collection.
The Hashmask NFTX index does not account for any implicit or explicit rarities enshrined in the card collection. Thus for the purposes of providing liquidity, all 16,384 cards are essentially of the same value.
Commenting on the importance of making all Hashmasks equal for the purpose of providing liquidity, the announcement reads:
“Because of this, this index fund will organically become a fund that attracts the least valuable Hashmasks, often referred to as floor Hashmasks. Floor prices are able to stay in parity due to arbitrage opportunities which arise when the price is either too high, or too low.”
Hashmask raised over $14 million from the sale of 16,384 digital art pieces with some owners already scoring massive buys for their wares. The project is the latest example of the growing appeal of NFTs with projects looking to leverage this popularity in the gaming industry as well. Indeed, Enjin has partnered with Miss Bitcoin to debut an NFT project in Japan.