Quantix VS NFT Fractionalization protocols.

Value Proposition

Why use Quantix?

For whom is Quantix?

What makes Quantix stand out

How Quantix work

How to Use the Platform

Testnet Guides

Best practices (coming soon)
Tips and tricks (coming soon)

FAQ

Product FAQ

Testnet FAQ

Legal FAQ

Art and Creators Relationship FAQ

Support

Help Center

Main menù

Learn Quantix

Help Center

Learn Web3

Testnet Guides

Quantix Blog

Quantix compared to NFT Fractionalization protocols.

How Quantix differentiates itself from Fractionalization protocols in its two typical modes of technical implementation: with fractions represented by erc20 or by erc1155

Quantix compared to NFT Fractionalization protocols.

👉

The Main use-case of fractionalization protocols is to divide an NFT in smaller fractions and to co-own an NFT between more users which is a part of the value propositions of Quantix.

Fractionalization protocol usually manages just the process to lock the NFT in an escrow and the issuance of a token to represent the fractions of the NFT with a governance method connected. This usually results in issuing a fixed number of fractions that can be sold or exchanged on the secondary market in different platforms (such as Uniswap if the fraction is an ERC20 or on Opensea if it's an ERC1155).

💡

On the other hand, Quantix has a completely different method to mint the shares and manages all the primary and secondary markets in order to reach its USP: a fully liquid market for any NFT.

Difference between Quantix and ERC20 NFT fractionalization protocols

Difference from the seller's point of view

👉

When the NFT fractionalization protocol issues an ERC20 token as fractions of the NFT the Owner then needs to create a way to sell/exchange them. Usually, to do so the Owner needs to create a liquidity pool on a decentralized exchange, provide liquidity of both fractions and wETH, then ways for traders to come buy the fraction to earn LP fees or wait for the sale of the NFT to be paid.

💡

On Quantix on the other hand the seller can choose to be paid as soon as the buyers of the shares reach the asking price.

Difference from the fraction/shares point of view

👉

When buying an ERC20 issue by a Fractionalization protocol, the buyer gets the risk that there will be no liquidity to sell back the fractions in the future, because liquidity is not always assured and some pools of the NFT less expensive are really small.

💡

On Quantix if you buy a share in Free Market you can always resell back the shares cause the liquidity is assured and locked in the vAMM.

Difference from the NFT buyer's point of view

Buyer interest in buying the whole NFT has a significantly different experience while using a Fractionalization protocol Vs using Quantix.

Is different from how the price of the NFT is determined:

👉

On Fractionalization protocol usually, the price is determined by a governance vote, so it means that the co-owners arbitrarily decide the selling price of the NFT

💡

On Quantix the price is determined by the number of shares minted in Free Market (so by the liquidity deposited in the vAMM to mint the shares) and any buyer can easily validate and certificate on-chain the process that brought an NFT to a certain price.

Is different from how the purchase is performed:

👉

On Fractionalization protocols usually, the NFT is purchased after an auction.

💡

On Quantix, due to the sophisticated real-time price calculation method, the NFT is purchased immediately without the need for an auction.

Difference between Quantix and ERC1125 NFT fractionalization protocols

ERC1155 is an NFT standard for semi-fungible tokens and is used from some NFT fractionalization protocols to represent the shares of NFT, let's see the difference with Quantix.

Difference from the seller's point of view

Despite the ERC20 standard, with ERC1155 the seller doesn't need to create a liquidity pool to exchange the tokens and get the liquidity, but he can simply sell them out. What's different is the way the fractions are sold:

👉

usually, on fractionalization protocols, there is a time-auction with decreasing price (dutch auction)

💡

while on Quantix there is the Quantization Phase with the chance for the Seller to completely govern the process.

Difference from the shares buyer point of view

👉

When buying an ERC1155 fraction a buyer can sell it back usually on a secondary market but he needs to wait for an interested buyer.

💡

On Quantix we have 2 different processes to sell back the shares, the quantization phase shares are illiquid and the seller needs to wait for an interested buyer. The Free Market shares are fully liquid and can be sold to get immediate liquidity in the vAMM.

Difference from the NFT buyer's point of view

The differences for the buyer are similar to the ERC20 NFT Fractionalization protocols and related to how the price is calculated and how the buyout is performed.

← Previous

Quantix vs Traditional Marketplaces

Platform overview

On this page

Quantix compared to NFT Fractionalization protocols.
Quantix compared to NFT Fractionalization protocols.
Difference between Quantix and ERC20 NFT fractionalization protocols
Difference from the seller's point of view
Difference from the fraction/shares point of view
Difference from the NFT buyer's point of view
Difference between Quantix and ERC1125 NFT fractionalization protocols
Difference from the seller's point of view
Difference from the shares buyer point of view
Difference from the NFT buyer's point of view