# What problems are we solving and how? The digital art landscape faces significant challenges that hinder widespread adoption and market liquidity. NFTs, initially recognized for their uniqueness and digital ownership, often suffer from low liquidity and lack robust financial utilities. These limitations decrease their value and usability, discouraging creators and investors from engaging in the digital asset ecosystem. Additionally, the DeFi sector, despite offering innovative financial tools, faces problems like high transaction fees, security risks, and complicated asset management. These issues together limit the potential growth and mainstream adoption of NFTs as valuable digital assets. DeFiShards pioneers a transformative approach in the NFT market by integrating DeFi utilities to enhance liquidity and utility. As a decentralized, non-custodial platform, DeFiShards allows users to mint asset-wrapped NFTs secured by individual vaults, where each NFT serves as a secure key to unlock underlying assets. This innovative model facilitates easier trading and valuation of NFTs. **Core Features of Defishards:** * **Zero Slippage Model:** The platform offers seamless buying and selling of NFTs with no slippage. * **Floor Price Protection:** Protects the value of NFT collections by implementing mechanisms to maintain a minimum threshold price, reducing the risk of significant price drops. * **Nominal Flat Fee Percentage:** Provides transparent and predictable transaction costs with a nominal flat fee structure. * **Ownership of NFT Contracts:** Ensures that each NFT in a collection has its own contract owned by the holder, enhancing security and control. * **Flexibility for Artists:** Enables artists to create token-backed art collections, offering new opportunities for revenue generation and creativity. * **Token Locking:** Reduces the supply of circulating tokens in the free market by locking tokens in DeFiShards vaults, allowing for seamless peer-to-peer transfers without impacting market prices. * **Deep Liquidity**: The underlying mechanism facilitates free-flowing liquidity within the DefiShards ecosystem enabling dApps to launch new tokens in the form of DefiShards, ensuring an active marketplace. * **Revenue Payouts for dApps:** Allows dApps to create their own NFT collections and distribute revenue payouts directly to holders, fostering a sustainable ecosystem and rewarding community participation. * **Deflationary Burn:** When users choose to redeem their fungible assets by burning NFTs, the total collection size decreases, creating a deflationary effect. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://defishards.gitbook.io/defishards-whitepaper/introduction/what-problems-are-we-solving-and-how.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.