Introduction
NFTH is an NFT fractionalization protocol for HyperEVM. It allows you to deposit NFTs into vaults and receive fungible vTokens in return.
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
Designed for Floor NFTs
Warning: NFTH is designed specifically for floor-priced NFTs. Do not deposit rare NFTs or "grails" into vaults.
Because anyone can use targeted redeem (for a 5% fee) to select a specific NFT from the vault, valuable rare NFTs will be arbitraged immediately. Snipers monitor vaults and will redeem any underpriced rare NFT the moment it's deposited.
Best practices:
- Only deposit NFTs you value at or below floor price
- Never deposit rare traits, 1/1s, or grails
- If you're unsure whether your NFT is rare, check the collection's trait rankings first
The protocol treats all NFTs in a vault as fungible and equal in value. This is a feature, not a bug. It enables true price discovery for floor NFTs.
How It Works
- Deposit - Send your NFT to a vault, receive 1 vToken
- Trade - Swap vTokens on any DEX or HyperCore order book
- Redeem - Burn 1 vToken to receive an NFT from the vault
Fee Structure
| Action | Fee |
|---|---|
| Mint (deposit NFT) | 0% |
| Random Redeem | 0% |
| Targeted Redeem | 5% |
Free minting and random redeems enable efficient arbitrage, keeping vToken prices anchored to NFT floor prices. The 5% targeted redeem fee captures the option value of choosing a specific NFT and funds protocol operations. See Fees and Tokenomics for details.
Quick Links
- Quick Start - Get started in 5 minutes
- Creating a Vault - Deploy your own vault
- Smart Contracts - Technical reference