Research Summary
The report discusses the potential of Shezmu, a DeFi platform that allows users to collateralize both NFTs and ERC20 tokens. It highlights the platform’s unique features, including its hybrid lending mechanism, isolated markets for each asset type, and unique tokenomics. The report also emphasizes the growth potential of Shezmu, given its strategic alignment with larger industry trends.
Key Takeaways
Shezmu’s Unique Offering
- Hybrid Lending Mechanism: Shezmu differentiates itself by allowing users to collateralize both NFTs and ERC20 tokens. This feature aligns with the larger industry trends and could unlock immense value, especially as luxury brands increasingly adopt NFTs.
- Isolated Markets: Shezmu’s platform has isolated markets for each asset type, which means distinct tiers and Loan-to-Value (LTV) requirements can be assigned based on the asset’s characteristics. This feature also isolates risks to specific pools or markets, preventing widespread contagion.
Shezmu’s Growth Potential
- Market Capitalization: Despite its innovative features, Shezmu’s current market capitalization is still under $2M. However, it has a growth fund valued at ~$4M, which is twice its current market cap.
- Tokenomics: Shezmu has unique tokenomics that balance incentives, sustainability, and stability. Its $SHEZMU token has a zero buy tax and 6% sell tax, which funds liquidity, USDC rewards for holders, and a stability fund.
NFT Market Growth
- NFT Market Size: The NFT market size was already at $20B in 2022 and is expected to grow even larger. More games and projects are creating NFTs to build community and value, which could further increase the market size.
Actionable Insights
- Monitor Shezmu’s Development: Given its unique features and growth potential, it would be beneficial to keep an eye on Shezmu’s future developments and how they impact its market position.
- Understand the NFT Market: As NFTs become increasingly popular, understanding the NFT market and its potential growth could provide valuable insights into the future of the crypto industry.
- Research Hybrid Lending Mechanisms: Shezmu’s hybrid lending mechanism is a unique feature that could revolutionize the DeFi space. Researching this feature could provide insights into how it works and its potential benefits.
