Use Cases

Exchanged-Traded Fund

Starvaults can function as the Exchange-Traded Fund of the FLOW’s NFT markets, which will benefit both skilled NFT collectors and investors who are into buckets of NFT investing strategies. To, explain it further:
One of the features of a Starvault is that it can be set up in a way that only allows deposits of specific NFTs. For example:
  • A Starvault that only allows female BALLERZ
  • A Starvault that only allows NBATS moments from the Lakers
Each Starvault mints its own unique token, and that token can then be traded on any Flow-based DEX such as IncrementFi or BloctoSwap. This means that users who feel intimidated by the NFT space can now take exposure to a given NFT collection without having to manually pick a given NFT. So, it should be more efficient to get exposure to a given collection via Starvault than via “NFT-picking”, just like the Expected Return of holding the S&P 500 is larger than the ER of a stock picking strategy. This would be one of the main selling points for buyers of Starvaults.
Furthermore, note here how Starvaults are strictly additive in terms of users: collectors will keep on collecting and do the “NFT picking” themselves, always making full use of their skill set to find and collect mispriced assets. Starvaults will merely add to this crowd the crypto investor who wants to gain exposure to a given collection without having to go up the learning curve that the collector painstakingly had to go through.

Market Index

Users generated vaults will be ranked in dashboards of which volumes or APRs are displayed. It serves as an additional benefit on finding out the popular NFT projects on the market based on metrics that were driven by users’ trading behaviours. It helps evaluate the potentials of an NFT collection as well as increase the efficacy of secondary market trading.
For Example:
APRs are generated based on the trading activities and liquidity supplies. If there is an increase in demand in buying or selling, say NBA Topshot Star Vault, the fees that are distributed to the LPs will rise, thus increasing the APRs. The dashboard will also come with the function of ranging the APRs from high to low as well as trading volumes, so it gives users direct visual representations of the popular NFTs on the market.

Interesting Applications

  • create a lending pool or collateralize their star tokens in an existing lending protocol
  • use themed Star vault token for prediction market to anticipate results of upcoming games
  • complete challenges via scooping up essential NFTs from Star Vaults