Violet Vallaya
Shibarium, an offshoot of the Ethereum blockchain focused on scaling solutions for Shiba Inu (SHIB), could soon get a major boost. A groundbreaking partnership between K9 Finance, the developers behind the knBONE token, and Mantra DAO, a leading DeFi protocol, promises to significantly increase Shibarium’s Total Value Locked (TVL) and reshape the way the entire chain operates.
The collaboration hinges on the concept of “liquid NFTs.” Mantra DAO specializes in creating “liquid representations of locked assets,” essentially unlocking the potential of NFTs as financial tools. This aligns perfectly with K9 Finance’s knBONE, which represents liquid BONE delegated for proof of stake (PoS) validation.
The impact of this partnership will be multifaceted, according to Mantra.
- Increased knBONE Utility: Mantra DAO will integrate knBONE as a universal currency for various NFT-related financial services within their platform. This opens a vast pool of liquidity for NFT trading on Shibarium, denominated in knBONE.
- Amplified Yield Opportunities: knBONE holders will be able to lend their tokens on Mantra DAO to earn an additional yield on top of their existing holdings. This yield generation will be a key driver for user adoption and further fuel the Shibarium economy.
- NFT-Backed Borrowing: The partnership allows users to borrow knBONE directly using their NFTs as collateral. This borrowed knBONE can then be used within the broader K9 Finance ecosystem, including their DeFi platform. Essentially, NFTs become gateways to a network of yield-generating opportunities.
- Subsidized Borrowing with knBONE: Mantra DAO hints at the future implementation of “Subsidized Pools” where knBONE will be one of the accepted tokens. This paves the way for users to borrow with minimal to no interest rates, fueled by the liquidity within the Shibarium ecosystem.
The significance of this partnership lies beyond just expanding knBONE’s utility. By integrating seamlessly with Shibarium’s infrastructure, Mantra DAO is essentially creating a framework for a robust NFT lending and borrowing marketplace. This, in turn, will attract more users and projects to the Shibarium chain, leading to a significant rise in TVL within the protocol.
Notably, the collaboration marks a significant step forward for Shibarium, establishing it as a major contender in the ever-evolving NFT and DeFi spaces.
