Banx.gg P2P Perpetual NFT Loans - $BANX

Jupiter DAO LFG Introductions
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TL;DR:
Pitch deck: https://bit.ly/lfgbanx

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Introductory Story: How did you get to today, and what do you want to do next?

We are an OG Solana team - since 2021 we have been building revenue generating ($3.3M to date) NFT-fi protocols on Solana. Below is a short timeline of our journey so far:

  • Jun 2021: launched Frakt, the first generative art collection and the fourth ever NFT mint on Solana

  • Nov 2021: Pawnshop Gnomies team became the first to issue an on-chain NFT-backed loan on Solana, later merging with Frakt in Mar 2022

  • Jun 2022: Successful seed round raise ($1.12M)

  • Jul 2022: Release of frakt.xyz peer-to-pool perpetual NFT lending protocol, growing to 250k SOL TVL at its peak

  • Apr 2023: Release of frakt.xyz peer-to-peer fixed duration loans

  • Jul 2023: Began distribution of 100% of our past and ongoing revenue (protocol fees + royalties) to Banx stakers (19.2k SOL distributed to date)

  • Nov 2023: Release of banx.gg, Solana’s first and only perpetual NFT lending protocol, gaining ~23% active NFT loan market share in just 3 months

What’s next?

We believe Solana NFTs have a bright future and we are doubling down on our conviction in this ecosystem with no plans at all to expand to other chains.

Our roadmap is focused on driving growth to the entire Solana NFT-fi market:

  1. NFT Liquid Staking
  • Holders from partner collections will be able to earn staking rewards AND safely borrow on Banx
  • Unlocks (previously inaccessible) NFT liquidity for loyal NFT stakers
  1. P2P Loan Requests
  • Enables custom terms, rarity premiums and private loans between parties
  • Lenders are able to start earning instant yield (increased capital efficiency)
  1. USDC Loans:
  • Lower volatility, healthier loans for borrowers
  • Attractive APR for stablecoin lenders

Describe your project in 5 sentences.

Banx is the only perpetual P2P NFT lending protocol on Solana.

Banx aims to provide the ‘true DeFi’ lending experience (borrowing with intention to repay & lending for yield) vs options trading (hedging/selling/buying NFTs via high risk loans and skipping royalties in the process)

Perpetual loans allow NFT holders to borrow SOL over any duration, at loan values and interest rates of their choice, with the ability to repay anytime.

Lenders benefit from attractive SOL APR, auto-compounding yield, and instant yield bearing opportunities from refinancing active loans.


Banx uses 100% of its revenue (fees + royalties) to buy back $BANX from the market distribute it to stakers

Tell us about your team

The team is made up of 13 FTEs and led by:

  • Timur Samoylov (https://twitter.com/timsamoylov) - Banx Founder and CEO

    Extensive professional experience in both web2 and web3 (Tezos, ETH, EOS, Solana) startups. Won several ETH and Tezos hackathons. Teamed up together with Vedamir during the first Solana Hackathon in 2021, when NFT infrastructure was non-existent (no CandyMachine etc.) to deliver a minting experience, which ended up birthing Frakt as the 4th Solana NFT collection.

  • Vedamir Efanov (https://twitter.com/vedapunk_sol) - Banx Founder and CTO

    Coding since he was 12, Vedamir worked on a range of confidential projects throughout his teens before finally going full time on BSC and ETH. Architect of free market DeFi protocols.

  • François Jacquemart (https://twitter.com/frankybanx) - COO

    Seasoned DeFi veteran and passionate about sustainable value driven tokenomics. Previously co-founded Bsit, a web 2 childcare mobile app (2M+ users).

  • Philippe Belhomme (https://twitter.com/rawrXBT) - CBD

    Well networked and easy going, growing the awareness of Banx across the ecosystem is his core focus, be it through weekly spaces or his connections. 10 years experience in TradFi (ING Global, BNP Paribas) until 2021, turned full-time with Banx since then.

Banx and the Solana ecosystem

Banx’s low-LTV (Loan To Value) perpetual loan model helps empower the Solana ecosystem in three key ways:

  1. Allows NFT holders to unlock liquidity with reasonable interest, giving them the ability to participate in the wider Solana DeFi ecosystem

  2. Supports creators, as low LTV loans are not a route to sell NFTs without paying royalties. Instead, holders who need liquidity fast can keep their beloved NFTs without selling and losing holder benefits

  3. Provides a liquidity layer that is complementary to NFT marketplaces, rather than in competition with them

Notable partnerships and collaborative ecosystem efforts:

Current synergy between Banx and Jupiter:

  • Most of the $SOL borrowed on Banx is used to generate volume on Jupiter via swapping and trading perpetuals.

Future synergies between Banx and Jupiter:

  • Support for ‘Wen New Standard’ (WNS) NFT standard on Banx
  • One-click ‘Borrow-to-trade’ Banx integration on Jupiter app
  • Liquidity partner for potential NFT collections from Jupiter, JupDAO or associated entities

Approximate date for TGE

End of March 2024

If your project were to succeed, how would it fundamentally change the web3 space?

We believe NFTs are going to play a key role in crypto mass adoption. But they are, by definition, illiquid.

Banx aims to bridge that gap, by providing the sustainable and scalable infrastructure to unlock NFT liquidity via flexible, safe, long-term loans.

Building this perpetual liquidity layer to support NFTs allows holders to maximise their capital efficiency, empowering them to become Solana super-users, pushing the entire ecosystem forward. Looking to the future, as tokenised assets gain more prominence (the RWA narrative), Banx will be well positioned to integrate them as well.

What are your biggest challenges or obstacles as a project?

To change the vision most of the ecosystem has of NFT loans.The current stigma surrounding NFT loans includes responsibility for NFT liquidation cascades, as well as an avenue to skip royalties while trading.

We focus on educating collections & loyal communities on the benefits of unlocking liquidity from low-LTV (low risk, low interest) loans, avoiding the above issues and encouraging responsible debt management (such as frequent partial repayments).

What advice would you give to another team launching a token in web3?

Focus on healthy, sustainable and fair tokenomics - fair valuation, strong value accrual mechanics, and a large % of supply circulating at TGE.

Ensure your protocol, ecosystem participants and holders are fully aligned with your success and incentivised appropriately.

What is something most tokens get wrong, and what steps are you taking to ensure that you won’t experience these pitfalls?

Common pitfall 1) No sustainable value accrual to the token.
How we solved it: For $BANX, 100% of the value captured by the protocol is redistributed to stakers, to ensure 100% aligned interests between all our stakeholders.

Common pitfall 2) Launching with low circulating supply and high FDV at TGE.
Not happening. Banx is launching with approx. 40% of supply circulating on TGE, with a $15m FDV. This ensures our valuation is not inflated, upside is significant for public sale participants, and all holders and users are aligned on our protocol’s future success and growth.

Common pitfall 3) Launching a token with no MVP/product or previous track record.
Not applicable. The Banx team has been building successful NFT-fi products on Solana since 2021, generating $3.3M in cumulative revenue since.

Appendix/About

69 Likes
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I think the format of your post is the gold standard.

Also the answers to the vision questions at the bottom are very well thought out.

21 Likes
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Solid presentation of Banx, intrigued by the liquid staking aspect you guys are planning for.

13 Likes
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Great pitch and summary. I like the future plans and the focus on sustainable growth

9 Likes
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Question regarding the Banx nft. What is the plan for this long term since this mentions that 100% or revenue will be provided to $banx stakers
Is there a plan for banx nfts to be part of rev share or will they be dropped tokens?

5 Likes
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Well written proposal @rawr!

Looking forward to hearing more from you and the team in Discourse and Discord!

7 Likes
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It was a full team effort sir! Thank you for the kind words :slight_smile: Excited to share our vision!

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Hey, great question.

Both Banx NFTs and $BANX can be staked for $BANX revenue. Within the Banx ecosystem, there are 1.4m partner points (fixed), which dictate revenue share and governance power. Banx NFTs hold roughly 35%, and $BANX holds roughly 65% of total partner points.

As stated on Slide 12 of our LFG Pitch Deck, 34.1% (Future Banx NFT Swaps) of $BANX supply will be locked, not in circulation and not staked.

This means that although the revenue is shared between Banx NFTs (35%) and $BANX token (65%), because only 65% of the $BANX token will ever be in circulation (assuming no extra swaps), it is still 100% revenue share if you buy $BANX, based on the available circulating supply at a given time.

The only way the locked token supply comes into circulation is through a future Banx NFT to $BANX swap. The amount of partner points in this locked $BANX supply covers the entire Banx NFT supply, if there ever was a scenario where 100% of NFTs decided to swap, meaning there will be never be any dilution on either side.

Hope that helps to answer your question :slight_smile:

8 Likes
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I have to agree with the others, it’s well written. Good luck with your application !

5 Likes
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Solid project. Good luck team

6 Likes
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Great thanks for all the info. You guys really provided a lot of really good info in this post and the pitch deck.

Nice work and good luck with the proposal

5 Likes
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If I had to sum it up in 1 word: Utility!
The user experience is superb, and the product works perfectly.
The tokenomics are really good, we have here a real redistrubution to the token holders by the generated fees (real value creation).
I wish you all the best :1st_place_medal:

4 Likes
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Great breakdown, easy to understand what you want to do NOW and why, but what about your existing token and all of it’s holders?

Does the market need 2 tokens associated to your project?

What are you doing with $FRKT before you launch $BANX?

My vote would be NO until we get clarification on that.

4 Likes
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Hey, thanks for the question.

So all $FRKT is eligible to convert to $BANX at a rate of 1 $FRKT = 312.5 $BANX.

In slide 12 of our LFG Pitch Deck (https://www.bit.ly/lfgbanx), there is a 11.2% $BANX allocation (‘FRKT Swap’) that covers the entire circulating $FRKT supply for conversion, ensuring that we don’t leave any stakeholders behind. Think of $FRKT instead as a pre-$BANX token.

The swap is open right now (https://frkt.banx.gg/), with $BANX claimable on launch date.

9 Likes
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Thank you, clearly i missed that. :slight_smile:
but, why the new token?
Raise?
Tech?
something wrong with FRKT that the team ‘learned’ from that will make BANX better?

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been using their product for over a year now. i think its the best in the space. for me, perpetual loans are the difference maker. also reasonable interest. $banx run <3

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to be clear,

I think the market does need more tokens, with actual Value, and I think you are headed that direction, but want to hear it in ‘plain speak’

the market does not need more tokens that are simply for a raise, or scammy in any way

not calling Banx/Frkt a scam or even scammy in any way, you guys have a helluva project going on over there, but I would love to see you stick with what you have in FRKT and adjust from that perspective

i hold 0 FRKT, and only used it a few times as a short term trading vehicle

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@rawr

Thanks for the introduction. Awesome and solid !

I got a question about helping NFT projects which are not in the Top 100 or Top 200. Will your plattform help small NFT Founders too ao that they can grow their User Base while getting them usecase for your plattform?

Cheers

Perry_Hope

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BANX has been a great Opportunity! When you take the time to really start utilizing Protocols and learning about DeFi and all the many ways to learn and lend, or even borrow if needed. I whole new window of opportunity presents itself! BANX and the Team have always been very helpful towards the Community and making sure all facts are always there. So, I root for BANX and the Whole Solana Marketplace! Let’s keep making this a better place for all of us! Together.

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Of course, we provide a platform for users to match lenders & borrowers - if a project, regardless of its “ranking” wants to provide liquidity for their NFT collection to be borrowed against, by all means!

Thank you for the kind words, it’s a team effort :slight_smile:

2 Likes