Every position opened through Pear Protocol's app will have the option of being minted as an NFT. While this may seem like a counter-intuitive feature to have on a trading platform, it actually offers a wide array of benefits:
NFT Minting Button on Pear Protocol's UI
Once a trade has been opened and minted, the position is now represented as an NFT (ERC-721) which will allow the user to transfer this position to any other wallet. This is of an advantage for numerous reasons:
Easy Managing: Should there be multiple managers of a Treasury, for example, trades can be created by numerous managers and simply transferred to the main Treasury Wallet for security and reporting.
Portable Trades: Many people will trade with their phones. Having the chance to trade ‘on-the-go’ being able to transfer your position means that you are able to trade with a hot wallet allowing you to open positions and transfer them to a cold wallet shortly after.
Delegated Trading: Some users will have traders or friends open a trade on their behalf, and they will now be able to transfer that position.
Trading Positions as NFTs
Once minted, every trader will be able to take their NFT and list this for sale on any available NFT marketplace (e.g., OpenSea, Zora, etc.) for others to purchase. This will allow users to sell attractive entry points of a trade, selling its potential to other traders.
Borrowing Against Position (NFTi)
Once the position is reflected as an NFT, traders will be able to deposit it onto a participating NFT Lending/Borrowing platform, as they would any prominent NFT collection and borrow against the position, enhancing capital efficiency.