The "Bring It On" tutorial is here, with three major tools to help you easily earn airdrop points on Pawnfi

Author: Shark

Since Blur launched its airdrop points program and sparked a market frenzy, the NFT space seems to have opened a new door. Users holding blue-chip NFTs can earn trading points through placing orders and bidding, while also increasing the overall liquidity of the market. Especially during the recent phase where the crypto industry has not fully recovered, traders are finding ways to gain more profits through their NFTs, and earning points through NFT trading has undoubtedly become one of the best options.

However, compared to Blur, which only offers NFT aggregation trading, NFT holders are clearly more eager to experience comprehensive financial ecosystem services, such as integrating NFTs into DeFi scenarios and obtaining integrated solutions—this is precisely where Pawnfi, known as the "Blur killer," comes into play.

As the most watched pioneering NFT liquidity initiator in the crypto market, Pawnfi also offers early bird users the opportunity to earn generous airdrop points. However, unlike Blur's "simple and crude" point-earning method, Pawnfi utilizes its core mechanism, "P-Token," to provide users with a more convenient and feature-rich way to earn points. The ongoing Mega Drop points event is particularly noteworthy.

I would like to remind everyone that the Mega Box will have two rounds, but only the first round is open to early bird users, so if you want to join, you must act quickly!

To help everyone understand, let me briefly introduce P-Token. It can be said that P-Token is a new mechanism in the NFT field that can "standardize and split" NFTs, converting non-fungible tokens (non-standard assets) into ERC-20 tokens (standard assets), thereby providing liquidity to NFTs while addressing their functional issues in financial applications. For example, you can exchange 1 BAYC NFT for 1000 P-BAYC, 1 CryptoPunk for 1000 P-PUNK, and 1 MAYC for 1000 P-MAYC, as shown in the image below:

After understanding the P-Token mechanism, let's quickly look at the "how-to" guide for earning airdrop points on Pawnfi. I think you might want to try the following "three treasures":

"Treasure One": Flash Trade combined with Liquidity Boosting

Friends familiar with Pawnfi should know that Flash Trade is a service that allows users to instantly exchange NFTs and P-Tokens at a 1:1,000 ratio, facilitating efficient and seamless NFT trading.

For example, NFT holders can sell an NFT in real-time to receive 1,000 P-Tokens, and then use the same amount of P-Tokens to purchase an NFT from the Pawnfi NFT vault. Pawnfi offers two methods for converting P-Tokens back to NFTs: Random or Specific. Users can "randomly" select an NFT from the Flash Trade vault with 1,000 P-Tokens or choose a "specific" NFT for exchange, with Pawnfi charging a nominal fee.

Using Flash Trade to instantly purchase an NFT on Pawnfi

Using Flash Trade to instantly sell an NFT on Pawnfi

I personally think Flash Trade is currently the most cost-effective way to earn airdrop points, especially selling NFTs for P-Tokens, as this type of transaction can generally yield double the points compared to other operations, so I recommend early bird users to try participating.

It is worth mentioning that you can also perform multiple NFT Flash Trade transactions in bulk at once. Once you successfully exchange for P-Tokens, you can buy back the NFTs, meaning you will be able to earn points a second time and engage with other features of the platform.

More importantly, acquiring P-Tokens does not mean you have to quickly cash out on Uniswap or exchange them for NFTs (Reminder: it is not recommended to cash out directly, as doing so may result in earning fewer points; holding P-Tokens has many uses). Here, you can act like an NFT market maker and add liquidity on Uniswap. However, generally, adding liquidity on Uniswap requires both assets, but Pawnfi simplifies the process for users to become market makers, pairing users and significantly reducing the capital requirement for earning Uniswap fees. Liquidity Boosting, as the task with the highest points on the platform, is also the best treasure I discovered during my operations, definitely worth exploring.

"Treasure Two": Lending

Similar to Aave and Compound, Pawnfi offers a decentralized, non-custodial financial lending market, allowing users to deposit tokens in exchange for the assets they need to borrow. When NFTs are used as collateral, they are securely stored in custody, while the corresponding P-Tokens enter the lending market. This means that the use of collateral in DeFi lending can be reflected in Pawnfi, as your P-Tokens become "funds" for others' borrowing.

You will find that Pawnfi has become a unique intersection of NFTs and DeFi, making NFT short selling and value leverage possible. In this Pawnfi ecosystem, 100 NFTs can potentially generate more value than 500 NFTs on other platforms, fully tapping into the immense potential of compound interest and the strong synergy between NFTs and financial markets.

Borrowing ERC-20 tokens in exchange for NFTs on Pawnfi

Supplying NFTs on Pawnfi to earn interest income

In the Pawnfi lending module, NFT whales can directly deposit a basket of NFTs to earn a large number of points. Even DeFi users without NFTs can earn supply points by supplying ETH/USDT/USDC, while also borrowing ERC-20 tokens in exchange for NFTs to earn points.

I think this "earning points" strategy may be more suitable for NFT whales rather than ordinary retail investors.

"Treasure Three": Consignment

Consignment is a tokenized conditional ownership transfer trading model. Pawnfi's consignment ensures that NFTs are tokenized and not limited by the NFT floor price.

For NFT owners, they often worry that their NFTs will be undervalued when listed and hope for quick execution of trades. Pawnfi's P-Token system effectively addresses this pain point, allowing NFT owners to directly sell their assets and receive an advance payment (in the form of P-Tokens), making it easier for NFT holders to enter the cash-out process.

For example, a user can delegate the sale of a BAYC NFT on the Pawnfi platform and receive 1000 P-BAYC as initial income, with custodial fees deducted based on the consignment period and interest rate. Then, the user can retrieve their NFT by repaying the advance payment and custodial fees or continue to list the NFT to potentially gain capital appreciation upon sale.

It is important to note that the points earned from using Pawnfi Consignment trading may be lower than those from Flash Trade, but this trading method allows NFT owners to set their own prices, thus not being restricted by the NFT floor price, while also receiving short-term funds in advance to continue exploring other features on Pawnfi to earn more points. It is reported that Pawnfi's Consignment trading service also provides users with additional benefits; if the NFT is not successfully sold after a certain period of self-pricing, users can still earn points as a reward.

Moreover, since the early bird phase is one of the peak traffic periods for the platform, choosing Consignment trading at this time may yield higher returns. Earning points during the early bird phase is crucial, as points can be exchanged for Mega Boxes to receive PAWN token rewards, so this is another strategy I recommend for all "point earners" to try.

Conclusion

Generally, earning airdrop points often involves spending money, as many project airdrops have conditions, such as a minimum amount of staked tokens or minimum transaction amounts, coupled with high gas fees on Ethereum. This means that "point earners" often have to spend dozens or hundreds of U before participating, resulting in the possibility that the value of the airdrop received may not exceed the gas fees paid.

However, Pawnfi increases airdrop rewards based on users' regular operations. You will find that Pawnfi approaches more from a product perspective, attracting early bird users to experience the product, allowing users to "unconsciously" earn airdrop benefits during NFT trading. This way of earning airdrop points is particularly suitable for friends with limited capital and time who have actual trading needs.

Today, the airdrop points model has become part of the development stage of the Web3 ecosystem. On one hand, early bird users can earn considerable returns by participating in earning airdrop points; on the other hand, project parties can spread the concepts of crypto and blockchain to a wider audience and utilize "point earners" for stress testing to better improve network performance.

In fact, the crypto market's view of so-called "point earners" has long changed. The number of speculators and disruptors in this group is gradually decreasing, while the number of early users is increasing. Moreover, compared to providing early token shares to leading institutional investors like Arbitrum and Aptos, strategies like Pawnfi that allow the community to participate in "earning points" clearly embody the spirit of crypto and are worth trying.