Develop and apply a new model, and explain in detail how _utable assets bring a new paradigm to assets

Original | Odaily

Author | Aurantium aurantium

Introduction

Polygon’s official on-chain information account announced on the X platform that Smart Cats, an xNFT game launched by Smart Layer, has received 5 million interactions in 60 days, with more than 300,000 independent active wallets participating, ranking first in Polygon in terms of trading volume.

Previously, Smart Layer also launched Smart Cat Loot, the first asset-backed xNFT issued on Polygon, which sold out within 4 hours of launch and is currently priced at more than double the price of Mint.

What is xNFT? Its full name is utable Non-fungible Token, which means that in addition to being an asset, it also has built-in runnable code, which can realize various on-chain and off-chain functions, and can perform operations directly in the wallet. There are also utable tokens, which have the same properties. Compared to traditional Token/Non-fungible Token assets, features include:

• Functions are built into assets, do not need to rely on external websites, can be executed directly in the Wallet, convenient and easy to use;
• Link Tokens to external scripts via ERC-5169 to transform them into multi-functional assets with high utility and greater scalability;
• Token integrated ecology, with comprehensive information and functions, easy to external call and ecological coupling.

Recently, Smart Layer has announced a series of significant developments and initiatives. On January 3, Smart Layer officially announced an upcoming Airdrop, and on January 8, its Launchpad launched a public beta, allowing game, Decentralized Finance, and Loyalty developers to create and launch utable Token/Non-fungible Token projects on the EVM and distribute them to Web3 users.

The utable Token/Non-fungible Token launched by Smart Layer creates a new paradigm of assets on the basis of transforming traditional functions, provides an open and multi-functional ecological development foundation, and brings innovation to the path of production and consumption for Decentralized Finance, brand Loyalty and Web3 games. Through this asset, developers can create a richer ecosystem to attract users, and users can fully enjoy convenience and rich functions, and benefit from the mutual prosperity of the ecosystem.

New requirements, new paradigms

The outbreak of the global financial crisis in 2008 led to bank crashes, debt crises and economic recessions in many countries, and the gradual increase in distrust of the traditional financial system and doubts about the monetary policy of central banks, Bitcoin came into being. Bitcoin inherits the basic functions of the traditional monetary definition, such as Unit of Account, means of circulation, etc., and also creates a new asset form and infrastructure for the world such as Crypto Assets, opening up a trillion-dollar crypto market.

However, since the development of Crypto Assets, innovation has begun to fall into a bottleneck, especially on the asset side, in addition to FT Token forms such as ERC-20 and BRC-20, only ERC-721 has risen as a new asset track. Current Tokens are often used as asset symbols, and the focus of development is on the external architecture.

The demand of the crypto industry is constantly escalating and blooming, with RWA expanding to the off-chain, traditional brands entering the market from off-chain, and Builders hoping for a mature and efficient model for long-term construction. There is an urgent need for a new asset paradigm and infrastructure to meet the rich needs of users and developers. utable Token/Non-fungible Token not only further improves the basic functions, innovates the development, consumption and operation models, but also provides an open and multi-functional infrastructure as a new asset paradigm to meet the comprehensive needs of the Web3 ecosystem.

Ecosystem integration and price discovery

Crypto Assets function as a Unit of Account, integrating multidimensional data input on-chain, through LP pricing, or externally through means such as Chainlink. However, due to the existence of multi-chain ecological barriers and large Fluctuation of LP counterparty assets, it still faces problems such as insufficient pricing and high Fluctuation.

For example, there are two LP pools in a Token, when the pricing is inconsistent, the user will be Bot poly Arbitrage, even if the pricing is consistent, it will be Bot Backrun due to slippage problems, although these automated Arbitrage can also be called Bot to help market price discovery, but the only profit is Bot developers, and users and related ecosystems suffer losses accordingly. In addition, if an unstable asset is used as one end of the LP, the price of the Token will also Fluctuation. Therefore, how to make the market fully and effectively price discovery still needs to be further improved.

As mentioned above, utable Token/Non-fungible Token can integrate the entire ecosystem into the asset, which means that all the information of the ecosystem will also be concentrated in the asset, including user history and real-time purchase and sell, lending and leverage, and the static dynamic data of the market are integrated. Even if the assets are distributed in multiple ecosystems, the market is still a unified whole, and when all information, markets, and traders are concentrated, they can be fully priced to ensure the interests of users, and developers can also concentrate resources and energy to control the underlying assets of the market and the corresponding operation. utable Token/Non-fungible Token provides a direct and effective way of price discovery through ecological aggregation.

From the medium of circulation to the channel itself

ERC-20/ERC-721, like traditional money, is a medium in circulation. Except for some memes that will join the mechanism in the Token code itself, in order to build an ecosystem on the basis of the Token, it is usually necessary to design and develop externally, and the Token itself is only used as the circulation and verification medium of the external ecology. In the current use case, there are several problems with using ERC-20/ERC-721 as the base asset and connecting to a separate site:

• Developers need to pay the cost of UX, UI design, publicity and customer acquisition, and site operation and maintenance.
• For new ecosystems/projects, users need to pay the cost of application search, security screening, application management, etc., especially when the ecology explodes and phishing websites and Hacker attacks are frequent, facing hundreds of new projects, there will always be users who suffer losses due to mistakenly falling into phishing traps, or failing to obtain the site in time to be attacked by Hackers and carry out high-risk interactions.

Through the built-in program, utable Token/Non-fungible Token is no longer a circulation medium, but also a circulation channel itself, for developers and users, the production and consumption logic has changed:

For developers, the above-mentioned types of costs have dropped sharply, which is conducive to the low-cost development of start-up projects, and is also suitable for agile development of small projects.

For users, the convenience has been significantly improved, especially with the promotion of Blockchain, the trend of developing to the mobile terminal has intensified, and the Wallet runs directly without external systems, which means that users can use it at any time without the need for developers to adapt; on the other hand, the promotion will also bring a large number of low Blockchain basic people, and the direct link between this part of the user and the ecology means that there is no need for addressing, avoiding phishing losses from the wrong site.

A new paradigm for assets

In addition to the above basic functional changes, utable Token/Non-fungible Token has opened up a new paradigm of Token, that is, assets with functionality, scalability, and coupling.

Functionality: Solidity, the underlying language used by the EVM, has a series of problems such as immature development tools and libraries, security, performance limitations, etc., and there are certain limitations to what it can do. utable Token links the Token to external scripts through ERC-5169, allowing the addition of various on-chain and off-chain functions, on the one hand, to ensure compatibility with different ecosystems, languages, and developers, but also to significantly improve the functionality of existing assets, providing new solutions to business problems that cannot be achieved by Solidity alone.

Taking RWA (Real World Assets) as an example, RWA is to create a special purpose vehicle (SPV) of real estate, securities, stocks and other items, and then distribute them through tokens. For example, at present, RWA is the most widely used U.S. bond, on the one hand, the bond price will be affected by the Intrerest Rate market will be Fluctuation, which belongs to off-chain high-frequency information, and the final end of the information is the price of RWA Token Token. On the other hand, how to achieve full market pricing on the Token side of the underlying asset changes? For example, the U.S. bond market includes the Treasury bond auction market, government bond trading system, brokers and many other platforms, developers can not only achieve multi-market data aggregation in utable Token, but all transactions of RWA Token can also be set by developers in a market to complete, and the full aggregation of information and transactions means that full and effective price discovery can be achieved.

Scalability: Assets developed based on Smart Contract, including ERC-20, are usually not upgradeable, and at most modify the original setting parameters. Unless a proxy contract is used, but the development of the proxy contract is complex and the application scenarios are limited, if the developer adopts the asset form of utable token, it can be flexibly adjusted to achieve rapid iteration of ecological design and adapt to market demand.

Coupling: One of the major differences between blockchain game projects and traditional games is that the assets are owned by users and can be used across games, but there has not yet been a true cross-ecological application of game assets in the market, one of the main reasons is that the current game assets ERC-721 or ERC-1155 are just a proof of assets that prove that the user “owns” the “item” However, the item has very little information and does not have characteristics, so it has no value for cross-ecological applications, and the most valuable footprint characteristics of users mainly exist in the separately designed system, becoming an information island.

utable Token/Non-fungible Token carries complete information and functions, which helps assets to be called by other ecosystems to achieve true cross-ecological development, and also brings value-added to users’ assets by promoting each other. Not only in the chain game, but also for the coupling between all systems is a big improvement. For example, a brand aims to acquire customers through another brand’s loyalty, and plans to airdrop its Non-fungible Token’s Loyal Customers, if it is a traditional Non-fungible Token, what can be read is the historical data transferred, including its purchase and holding, but there is no further user portrait. Based on utable Token/Non-fungible Token, it can further understand the user’s comprehensive consumption trend through the complete information it carries, and more effectively realize the decision-making and operation of the system on the basis of sufficient scheduling data.

The ecological combination has a multilateral network effect, and the effect will be more obvious with the increase in the participation system, and this growth is not linear, and the high coupling given by utable Token/Non-fungible Token will bring about an exponential increase in ecological prosperity.

Smart Layer Network

On January 15th, Smart Layer announced the official launch of the “Smart Layer Network (SLN)” Alpha Testnet, Testnet which continues to provide off-chain logic operations for 2.5 million xNFTs, and 2.5 million Smart Passes will be migrated to SLN. At the same time, Smart Layer became a SocialFi Week partner of the OKX X 1 network, and users can experience minting Cool Cat Derivatives on the X 1 network.

What is Smart Layer Network and what is the relationship between it and utable Token/Non-fungible Token?

According to the official documentation, the Smart Layer Network is a Blockchain-based network of Programmability services that transforms goods, services, and digital rights into ProgrammabilityToken, enabling complex interactions with various systems and Token in a Decentralization and scalable manner, including but not limited to seamless integration across digital environments, frictionless marketplaces, and user authorization, aiming to solve integration, privacy, and trust challenges.

The utable Token/Non-fungible Token is the key component of the “ProgrammabilityToken”, also known as the Smart Token, which obtains Programmability features and connects on-chain and off-chain functions through ERC-5169, allowing for rich and scalable interaction between the on-chain network and other systems. The SLN provides off-chain information, integrated systems and applications, and will run through the Token Incentivized Service Protocol, which is the fundamental guarantee for off-chain operations and services, asset scalability and functionality.

Summary

The new paradigm of assets brought by Smart Layer, utable Token/Non-fungible Token, will change the application scenarios of Crypto Assets, provide new channels for developers, and bring new experiences to users. Through this asset, developers can create a richer ecosystem to attract users, and users can fully enjoy convenience and rich functions, and benefit from the mutual prosperity of the ecosystem. With the advent of the wave of crypto development in the new year, all kinds of rich needs will continue to be born, and the Smart Layer Network will reshape the operation mode of the Web3 ecosystem and further exert its infinite possibilities.