After the hustle and bustle of the past two years, the NFT market seems to have entered a "cold winter", with prices of various blue chips falling continuously. The root cause is that static NFTs dominated by PFP in the 1.0 stage have fallen into a growth bottleneck, and a new narrative is needed in the 2.0 stage to open up the incremental market. Dynamic NFTs have become an emerging hot spot in the market and are expected to be highly anticipated.

However, dynamic NFTs have strict requirements on the underlying infrastructure, and the emergence of the emerging public chain Sui has successfully broken the deadlock. Sui uses the Move virtual machine (MoveVM) and the Move programming language to implement smart contracts, lowering the boundaries for creators to innovate through dynamic NFTs, thereby unlocking more types of use cases and more engaging applications and experiences. Developers can implement dynamic NFTs, upgrade, bundle and group them, and generate real-time feedback on the chain based on changes in NFT behavior.

Like static NFTs, dynamic NFTs also face liquidity difficulties in the initial stage. GiroSwap focuses on building products that provide liquidity for NFTs on the Sui ecosystem. Its product matrix is ​​rich and diverse, including NFT AMM protocols, NFT lending, NFT fragmentation and NFT installments, and NFT/Token Launchpad.

As the first one-stop scalable dynamic NFT liquidity application protocol based on Sui, GiroSwap is committed to continuously exploring and leading the innovation direction of the crypto market. Through GiroSwap, users and developers can jointly explore the unlimited potential of dynamic NFTs and enjoy the dividends of liquidity.

▎NFT2.0: Dynamic NFT becomes the next market trend

The NFT market in 2023 seems to have entered a deep bear market. The floor prices of many blue-chip projects such as BAYC, Azuki, and Moonbirds have continued to fall, and the overall buying sentiment is low. Even though the Bitcoin Ordinals inscription attracted attention for a short time in March, and Yuga Labs also worked hard to promote it, it ultimately failed to create a bigger wave and save the decadent NFT market.

At its root, NFT lacks a new narrative logic. After the crazy hype of various JPEGs or PFPs in the first phase of the market (2021-2023) reached the ceiling, the value gradually returned, and consumers (players) gradually became rational, and it was difficult to pay for NFTs that had no practical value. Therefore, in order to expand the increment in the second phase of NFT, its practical value must be enhanced. For example, NFTs can be used as tickets, memberships, identities, game props, investment targets, etc. The static NFTs in the first phase obviously cannot meet the demand, and the emerging dynamic NFTs have also attracted much attention recently and become a hot spot in the market.

What is dynamic NFT? Dynamic NFT, referred to as dNFT, is relative to static NFT.

In fact, most of the NFTs we come into contact with are "static NFTs". Static NFTs cannot be changed once they are minted, and they cannot be changed on the chain because their metadata (core attributes) are framed and permanently immutable when the code is written. This feature is also very suitable for digital artworks such as videos, images, GIFs, and 3D models. At present, static NFTs are mostly used in art projects, music photography, sports competitions and other fields.

However, static NFTs also have some bottlenecks due to the fixed metadata and inability to dynamically upgrade. Some real-world tokenized assets and constantly updated video games require access to data for continuous updates, and static NFTs cannot meet the needs. At this time, dynamic NFTs can solve this contradiction well.

Dynamic NFTs can change based on external conditions - smart contracts trigger changes to dynamic NFT metadata. In addition to changing metadata, dynamic elements can also be implemented. Dynamic NFTs can be minted based on certain specific conditions, such as minting NFTs when hidden locations are discovered in AR applications. Dynamic NFTs can also trigger "hidden attributes" through user interaction, which do not originally exist in the metadata.

Specifically, dynamic NFT can be applied in the following aspects:

On-chain NFT passport, dynamic NFT can automatically update digital identity without replacing digital identity documents, including details such as place of residence, marital status and contact information.

In games, players use NFTs to participate in P2E games. The achievement data obtained in the game (such as online time, winning rate, MVP, etc.) will affect the status of the NFTs held in real time; the game developers in the background can also upgrade the players' NFTs based on these data, or group them with other high-level players to enhance the players' gaming experience. In addition, feedback can be generated on the chain in real time based on the behavior changes of NFTs to achieve an open game ending (self-selected game ending).

Virtual real estate, although there have been real estate NFTs before, static NFTs cannot reflect the ever-changing factors such as real estate prices, years and ownership; dynamic NFTs can capture real estate details and have the flexibility required to update specific information. For example, if you hold an NFT of a property in a certain area of ​​Beijing, the NFT will change with changes in market prices, market supply and demand, and the price will vary greatly.

Brand dynamic marketing: In the past, brand NFT projects were all about building a new NFT series from 0 to 1, mostly done by brands alone, which was very time-consuming and laborious. Now, based on dynamic NFTs, we can gather data resources on and off the chain to design dynamic marketing plans that maximize the benefits for brands, ultimately broadening the business chain and enhancing product value.

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Compared with static NFT, dynamic NFT is smarter and can adapt to and reflect the situation in the outside world in real time. It can also set restrictions and rules, further enriching the application scenarios of NFT, and more use cases are worth exploring. The new round of NFT development has just started, and dynamic NFT is expected to inject fresh blood into the NFT market, introduce more increments and continuously expand the market scale.

▎Sui provides innovative foundation for dynamic NFT

Static NFTs do not have an inherent operating logic, and all the capabilities are separated from the NFT entity. Its purpose is separated from the story and culture of the NFT itself. Dynamic NFTs, on the other hand, have an inherent operating logic, and the capabilities they provide are endogenous and can be directly displayed. The development prospects of dynamic NFTs are unquestionable, but they face great technical difficulties in implementation.

First, dynamic NFTs need to constantly modify or update metadata in smart contracts based on the source of information, which places high demands on basic hardware such as storage and transaction processing speed. Currently, static NFTs are best developed on Ethereum, mainly because of the low requirements for these. The tens of dollars in gas fees and inefficient matching (TPS is only 15) make it very difficult for Ethereum to develop dynamic NFTs, and other public chains also do not have the conditions for development. The emergence of Sui makes up for the shortcomings of dynamic NFT development.

Sui's smart contracts are written in Move. Move is a smart contract language that can be compiled and run in a blockchain environment that implements MoveVM. When it was first created, it took into account many security issues of blockchains and smart contracts, and referred to some security designs of the RUST language.

Unlike many existing programming languages, Move is designed to support both writing programs that safely interact with untrusted code and static verification. Move has such security features because it abandons all non-linear logic based on flexibility considerations, does not support dynamic dispatch, and does not support recursive external calls. Instead, it uses concepts such as generics, global storage, and resources to implement some alternative programming patterns. For example, Move omits dynamic dispatch and recursive call features, which lead to costly reentrancy vulnerabilities in other smart contract languages.

Compared with other public chains, Sui runs at an unimaginable speed and scale - the peak throughput can reach 297,000 TPS. The key to its performance lies in transaction parallelization.

In most blockchains, transactions must be ordered and put into blocks for sequential execution; sequential execution unnecessarily limits throughput on these chains, since most transactions are independent of each other. Because Sui requires explicit dependencies between transactions, it is able to process them in parallel. In the rare cases where transactions are intertwined, Sui can still order them and execute them sequentially. Because independent transactions can be verified in parallel, Sui can scale by linearly increasing throughput by adding more devices to each validating node.

In addition to high throughput, Sui also has low latency. Its consensus algorithm focuses on minimizing the communication required between verification nodes to process transactions; unlike the fire-and-forget broadcast of traditional blockchains, Sui ensures a two-way handshake between requesters and approving validators, which results in simple transactions being verified almost instantly, while complex transactions can be executed within 2-3 seconds.

With high throughput and low latency, transactions on Sui can be easily integrated into dynamic NFT and other settings such as games that need to be completed in real time.

Additionally, most blockchains' storage is account-centric, while Sui's storage is designed around objects. Each object is owned by an address, mutable by default, or immutable or shared between multiple addresses. Sui's Move smart contracts can receive these objects as input, operate on them, and return objects as output. This is a completely different smart contract programming paradigm from Solidity or Rust, which is more expressive and simpler for digital object expressions of dynamic NFTs and crypto games.

Moreover, by studying the code of MoveVM, we can clearly see that MoveVM separates the storage of data and the storage of the call stack (process logic), which is the biggest difference from EVM. For example, in EVM, to implement an ERC20 Token, it is necessary to write the logic in a contract and record the status of each user. In MoveVM, the user status (resources under the account address) is stored independently, and program calls must comply with permissions and mandatory rules on resources. Although a certain degree of flexibility is sacrificed, security and execution efficiency (which helps to achieve concurrent execution) have been greatly improved.

▎GiroSwap: A scalable dynamic NFT liquidity application protocol based on Sui

With the official launch of Sui mainnet on May 3, dynamic NFT is about to usher in explosive growth and become the most eye-catching new trend in the crypto market. Of course, dynamic NFT is only the first step, and various financial products around dNFT (i.e. NFTFi) are indispensable. Especially for dNFT, liquidity is the first problem to be solved.

Traditional static NFT markets such as Opensea basically adopt an order book matching system, where sellers place orders or buyers bid. One problem here is that sometimes buyers and sellers do not agree on prices, which may result in two extreme situations: NFTs have a price but no market or a market but no price; and sometimes multiple buy orders need to be purchased in batches, which consumes high gas fees.

How to solve the problem of dynamic NFT liquidity? GiroSwap, the first scalable dynamic NFT liquidity application protocol in Sui ecosystem, came into being. GiroSwap is the winning project of Sui Hackathon Vietnam Station. It has been launched on the mainnet and focuses on one-stop aggregation trading of NFT/Token.

Specifically, GiroSwap has launched several flagship products to meet the rigid needs of the market, including NFT AMM protocol, NFT lending, NFT fragmentation and NFT installment payment, and NFT/Token Launchpad. With GiroSwap, users do not need to move between multiple applications in the Sui ecosystem. One Dapp can solve all needs. GiroSwap = Uniswap + BenDAO + Opensea + Blur + Launchpad.

First of all, the NFT decentralized exchange launched by GiroSwap adopts the automatic market maker (AMM) model. Liquidity providers (LPs) can deposit assets into unilateral or bilateral trading pools to provide liquidity for their favorite NFTs, and can choose to charge transaction fees based on the bid-ask spread; GiroSwap does not distinguish between different NFT IDs, which means that each NFT in the liquidity pool is bound to the current price coefficient, and users who are willing to buy and sell NFTs get the same price from the NFT pool when trading, regardless of whether the NFT ID is rare. In addition, GiroSwap supports one-click purchases and batch purchases, which can effectively save Gas.

In addition to supporting NFT transactions, GiroSwap also supports Sui's native tokens and all tokens bridged to the Sui ecosystem for trading through AMM. Compared with Uniswap V2, GiroSwap has lower slippage, lower gas fees, and a smoother user experience.

It should be noted that compared with the limitations of the traditional NFT market, GiroSwap has solved many problems by adopting the NFT AMM model. In the traditional market, the filtering functions of each NFT Collection are different, while GiroSwap has achieved a more flexible filtering function by calling the tags of each Collection contract, which allows users to find NFTs that meet their needs more conveniently.

Furthermore, GiroSwap launched the NFT lending market to unlock the value of dynamic NFT assets. If NFT holders do not want to sell their assets, they can also pledge NFTs to obtain stablecoins or Sui tokens to ease cash flow pressure. The peer-to-pool matching lending system connects borrowers and lenders through liquidity pools, and GiroSwap has also implemented a powerful liquidation system to ensure the safety of borrowed NFTs and protect the interests of lenders.

Additionally, GiroSwap also offers NFT installments through its peer-to-pool trading system. This feature allows users to purchase the NFTs they want in installments, making NFTs accessible to a wider range of users. Users can purchase the NFTs they are interested in without having to pay the full price upfront, driving further growth and adoption of NFTs in the market.

In addition, considering that NFTs have become blue-chip projects and their prices have risen, making them difficult for ordinary retail investors to access, GiroSwap has also introduced an NFT fragmentation feature that allows users to convert their favorite NFTs into MemeTokens that represent partial ownership of the underlying NFT. These MemeTokens can be traded freely on the platform, giving users access to a variety of NFTs without owning the entire asset. This feature increases liquidity in the entire NFT market and democratizes access to valuable NFTs.

Finally, GiroSwap launched the innovative Launchpad, which provides automated fundraising tools and one-stop liquidity solutions for all projects (NFT, Token). GiroSwap allows developers to customize Token/NFT issuance, claims and other rules before fundraising activities. Developers only need to set fundraising terms, which can effectively reduce development and market-making costs.

In summary, GiroSwap is the first community-driven multi-protocol platform built on the Sui ecosystem, aiming to create a broader network effect by interweaving various decentralized markets and tools to inject more liquidity into the market.

GiroSwap dynamic NFT PASS display:

Compared with other blockchains, Sui provides more power for the development of dynamic NFTs in the underlying infrastructure. The Move language it uses lowers the boundaries for creators to innovate through dynamic NFTs, thereby unlocking more types of use cases and more engaging applications and experiences. Of course, due to the short time of Sui's mainnet launch, many innovative projects and applications have yet to be tested by the market. But one thing is clear: after Sui enters the market, the development momentum of the dynamic NFT market will become more and more rapid.

As the first one-stop scalable dynamic NFT liquidity application protocol based on Sui, GiroSwap continues to explore and lead the innovation direction of the crypto market. Its safe and efficient trading environment and rich liquidity solutions have injected new vitality into the NFT market. Through GiroSwap, users and developers can jointly explore the unlimited potential of dynamic NFTs and enjoy the dividends of liquidity.