Introduction
NFTH is an NFT fractionalization protocol for HyperEVM, built as a public good. It allows you to deposit NFTs into vaults and receive fungible vTokens in return.
Design Philosophy
NFTH is designed as a primitive layer for NFT fungibility. Core principles:
- Simplicity over features - One canonical vault per collection prevents liquidity fragmentation
- Fungibility as infrastructure - vTokens are building blocks for DeFi, not an end product
- Permissionless but opinionated - The smart contracts allow flexibility; the frontend guides best practices
This means NFTH focuses on doing one thing well: converting NFTs into fungible tokens that can plug into the broader DeFi ecosystem.
What is NFT Fractionalization?
NFT fractionalization converts a non-fungible token (NFT) into fungible tokens (vTokens). This enables:
- Liquidity - Trade fractions of NFTs on DEXs
- DeFi composability - Use vTokens as collateral, in yield farming, etc.
- Price discovery - Market determines floor price via vToken trading
- Accessibility - Own a share of expensive NFTs
How It Works
- Deposit - Send your NFT to a vault, receive 1 vToken
- Trade - Swap vTokens on any DEX
- Redeem - Burn 1 vToken to receive an NFT from the vault
Fee Structure
NFTH is designed as a public good with minimal fees:
| Action | Fee |
|---|---|
| Mint (deposit NFT) | 0% |
| Random Redeem | 0% |
| Targeted Redeem | 1% |
The 1% targeted redeem fee compensates the protocol for the option value of choosing a specific NFT.
Quick Links
- Quick Start - Get started in 5 minutes
- Creating a Vault - Deploy your own vault
- Smart Contracts - Technical reference