bozoHYBRID FAQ - All You Need to Know About Hybrid DeFi

Question 1

What is Hybrid DeFi?

Accepted Answer

Hybrid DeFi is all about blending the world of unique digital treasures (NFTs) with the traditional crypto finance tools (DeFi tokens) to create a supercharged system where both types of assets can shine.

bozoHYBRID pioneered this concept as the inventors of Hybrid DeFi to unlock new utility with NFTxTOKEN including permissionless arbitrage, trustless OTC, deflationary NFTs, Synthetic hedging, non-dilutive fractionalization and more. Hybrid DeFi is the next wave in the decentralized finance landscape.

Question 2

How does the NFT deflation work?

Accepted Answer

As the tokens distribute it deflates the NFT... it's deflation via token distribution, something we pioneered.

How does deflation via token distribution work?

For example, if someone buys a $bozo NFT, swaps it to 800,000 $bozo tokens and then sells those tokens on the open market. Those $bozo tokens get distributed to different wallets making it impossible for those tokens to be in the same wallet to be swapped to an NFT again.

There are only 1,000 NFT's but 800,000,000 tokens.

What happens when there's 10,000 token holders?

Tokens will continue to get distributed to different wallets continuing to deflate the NFT as more people buy the token.

This should cause a premium that will also drag the token up with it.

Question 3

What is Cross market arbitrage liquidity injections?

Accepted Answer

Our hybrid model couples the NFT and token markets together.

1 bozo NFT = 800,000 $bozo tokens and vice versa.

Both can be swapped for virtually nothing here as many times as you want here on our bidirectional bridge: https://bozo.finance/bridge

As our market continues to grow the arbitrage opportunities will get bigger and bigger. This means more liquidity needs to be injected as it grows to keep the NFT and token price in equilibrium.

We expect our NFT's and tokens to be some of the most liquid in the world, especially as the NFT gets into the high 6 figures worth.

It's going to naturally attract big liquidity as the market capitalises on the huge arbitrage opportunities that have already and will continue to present themselves.

We've pioneered a whole game of liquidity that can't be stopped, it's a black hole.

This is going to be great for the decentralised, permissionless and trustless OTC we've created that also eliminated slippage.

What's really interesting in all of this is that the NFT is deflationary via token distribution, so the premium effect is going to be interesting.

Question 4

What is the two-way liquidity portal?

Accepted Answer

It's the first of it's kind and only under our hybrid model.

First, what's the hybrid model?

It's combining both NFT's and tokens into one, what we call NFTxTOKEN.

Our NFT's are inscribed onto the blockchain and they each hold 800,000 tokens each.

Think of the NFT's as bricks of gold, you take them into the bank and swap them for cash in your wallet (our tokens).

You can always take the cash to the bank and get your brick of gold back.

It's exactly how our hybrid model operates.

1 $bozo NFT = 800,000 $bozo tokens and 800,000 tokens = 1 $bozo NFT

Both are traded separately on their secondary markets and this is where the cross market arbitrage liquidity injection comes from. Arbitrage opportunities arise to keep 800,000 $bozo tokens the same as 1 NFT.

The two-way liquidity portals is the word we use for another portal of liquidity to enter our ecosystem. One through the NFT secondary markets like magic eden or tensor trade and the other through traditional token trading markets like raydium.

This is revolutionary and has never been done before and opens up a whole new world of liquidity and game theory.

As the NFT holds 0.1% of the total supply, using the secondary market is now a trustless, permissionless and decentralised OTC and eliminates slippage. As liquidity grows through market efficiencies you'll be able to exit large positions very easily without slippage typically seen on token trading.

The bozoquidity bozonomics goes DEEP with bozo HYBRID.

This is just the start.

Question 5

How did we create a trustless, permissionless and decentralised OTC market for $bozo AND eliminate slippage?

Accepted Answer

Using our hybrid model and allocating 800,000 $bozo tokens to each NFT, and each NFT then representing 0.1% of total supply. The secondary NFT marketplace naturally becomes our OTC market place.

Simultaneously this also eliminates slippage.

Let me explain.

You no longer endure slippage entering or exiting the market on big positions because you can simply buy or sell big portions of the supply on the NFT market with zero slippage.

As the cross market arbitrage liquidity injections continue to get bigger and bigger from capitalising on the huge arbitrage opportunities between the token and NFT to keep them in equilibrium, the liquidity to keep them equilibrium will increase.

This will create the most liquid NFT's the market has ever seen, especially as they start trading into the high 6 figures and ultimately into the 7 figures.

Our hybrid model killed two birds with one stone!

This isn't accounting for the NFT deflation via token distribution either.

Question 6

What does trustless mean?

Accepted Answer

Trustless is a fundamental quality of decentralized blockchains and crypto, suggesting that when using such a system, there's no requirement to place trust in any third party or intermediary.

Question 7

What does permissionless mean?

Accepted Answer

The Bitcoin blockchain operates in a permissionless manner, meaning that anyone can join the network as a user or a node without having to seek approval from a central authority (or anyone, for that matter).

Question 8

What is slippage?

Accepted Answer

Slippage is when the price of an order executes at a drastically higher or lower price than you expected. Due to the volatility of cryptocurrency, the price of an asset can fluctuate often depending on trade volume and activity. This is particularly the case when placing large orders as there might not be enough takers at your desired price.

Question 9

What is OTC?

Accepted Answer

Over-The-Counter Trading, or OTC Trading, is a framework of financial technology that enables trading markets outside a regular exchange. Specifically, within the crypto and bitcoin market, it is a private trading market for buying or selling crypto.

Question 10

What is friction?

Accepted Answer

Market frictions are factors that impede the smooth functioning and efficiency of financial markets. In the context of cryptocurrency markets, these frictions can include factors such as low liquidity, fragmented exchanges, regulatory uncertainties, limited market access, and technological limitations.

Question 11

What is arbitrage?

Accepted Answer

Arbitrage occurs when a for example 1 NFT is sold for a higher price than the price at which 800,000 tokens are trading for. As they are basically the same asset (800.000 tokens always equal 1 NFT), the temporary price difference of this same asset between the two markets lets traders lock in profits.

Question 12

What is a Fair Launch?

Accepted Answer

A Fair Launch refers to the distribution of a cryptocurrency token in a manner that is deemed equitable, transparent, and open to the public.

Question 13

What does deflationary mean?

Accepted Answer

A deflationary cryptocurrency is one where the rarity gradually increases. The number of NFTs that can be swapped for tokens, will decline over time, creating scarcity and increasing its value. As a result, the purchasing power of a deflationary cryptocurrency increases over time.

Question 14

What is bozo Hybrid?

Accepted Answer

bozo Hybrid is the first Hybrid DeFi project that solves two very important cryptocurrency problems through the use of its innovative NFTxTOKEN bridge. Firstly, it eliminates the problem of price slippage for whales, and secondly, it eliminates the need for traders to trust OTC desks.

Question 15

How does bozo Hybrid solve the problem of price slippage for whales?

Accepted Answer

Normally, as whales enter or exit crypto markets directly, their very large trades are likely to execute at undesirable prices due to lower than required liquidity, this is known as slippage. Since each bozo NFT can be swapped for 800,000 $bozo tokens and vice-versa through the NFTxTOKEN bridge, whales can enter or exit the crypto markets by accessing liquidity from the bozo NFT markets where price slippage does not occur.

Question 16

How does bozo Hybrid solve the OTC desk trust problem?

Accepted Answer

Traditionally, large crypto traders have to use Over-The-Counter (OTC) desks to get the best price in order to avoid moving the price of crypto as they enter or exit large trades. Trades through OTC desks are private transactions and require traders to trust, oftentimes unknown or faceless employees, to not steal their funds while the funds are in escrow. bozo Hybrid’s NFTxToken bridge eliminates this problem entirely through the use of the trustless and permissionless smart contract bridge. Instead of having to trust middle-men, traders can simply use the bozo Hybrid bridge thus allowing them to enter and exit large trades.

Question 17

Why does the EXq…guc address hold a large number of Bozo NFTs and $bozo tokens?

Accepted Answer

EXq…guc is the  NFTxTOKEN bridge address. This smart contract is responsible for the trustless and permissionless swapping functionality. Anyone who holds the bozo NFT or 800,000 $bozo tokens can swap between the two at any time and with zero fees. The bridge is used by people who may want to swap their NFT for tokens or vice-versa and gain access to the liquidity from either the NFT or token markets. Many prefer to hold NFTs in their wallets and thus their tokens are held by the bridge. No one has control over this bridge or the assets held within it.

Question 18

How does the swap between the NFT and tokens work?

Accepted Answer

The NFTxTOKEN bridge is a smart contract and it holds the NFTs and tokens in escrow. Holders of the NFT or 800,000 tokens can automatically swap one for the other using the completely permissionless and trustless bridge.

Question 19

What does inscribed on the Solana blockchain mean?

Accepted Answer

Inscriptions are unique Solana addresses containing images stored on-chain. Unlike traditional NFTs that rely on external links, inscriptions embed images directly on-chain, each with its distinct address. Inscriptions are stored on the blockchain, which means that they are permanent and immutable. SPL20 is the NFT token standard for onchain inscriptions of images on Solana.

Question 20

What is special about the bozo NFT?

Accepted Answer

Every bozo NFT is inscribed directly on the blockchain. This means that each NFT has a unique Solana address and the NFT image is stored directly on-chain. Unlike traditional NFTs that rely on 3rd party image storage using external links, bozo NFTs are permanent and immutable. bozo NFTs were inscribed on-chain using the SPL20 standard.

Question 21

Why is the bozo NFT deflationary?

Accepted Answer

By design, there are only 1000 NFT’s  800,000,000 tokens available. This intrinsically means that the NFT is more rare than the tokens. As more and more tokens are traded and end up in different wallet addresses, less and less can be swapped for 1 NFT (as you need 800.000 tokens to be able to swap for 1 NFT). This drives the price of the NFT up. However, as this happens, and the price of 1 NFT will always be equal to the price of 800.000 tokens, this will drive the price of the token up as well, resulting in a deflationary increasing price spiral.

Question 22

What is the total token supply for $bozo?

Accepted Answer

The total token supply for $bozo is fixed at 800,000,000 tokens and more tokens can never be created.

Question 23

Is the $bozo ticker permanent?

Accepted Answer

Yes, the $bozo ticker is claimed by this project, and cannot be changed, nor claimed by anyone else. The NFT is inscribed on the blockchain and cannot be changed.

Question 24

How does the market cap of the NFTs compare to that of the tokens?

Accepted Answer

They are exactly the same, always. 800.000 tokens can be swapped for 1 NFT. They cannot both exist at the same time, meaning that the market cap of the tokens will always be the same as the market cap of the NFTs.

Question 25

What will give a better return, 1 NFT or 800.000 tokens?

Accepted Answer

We cannot provide advice on what will give a better return. 1 NFT equals 800.000 tokens. They can be swapped back and forth (always) and hold the same value. Having said that, the NFT will most likely trade at a premium because they are more rare: there can only be 1000 NFTs but there are 800.000.000 tokens.

Question 26

Does this mean that if I hold 800.000 tokens or 1 NFT, they can always be exchanged for one another?

Accepted Answer

Yes, 1 NFT will always equal 800.000 tokens and vice versa, and they can always be swapped back and forth, always and basically zero costs in our own bi-directional bridge.

Question 27

Should I get the bozo NFT or 800,000 $bozo tokens?

Accepted Answer

Since 1 NFT will always be equal to 800,000 tokens and vice-versa, and they can always be swapped back and forth at any time using the NFTxTOKEN bridge. It doesn’t matter if you get the NFT or 800,000 tokens, they are the same.

Question 28

Are there any royalties, buy tax or sell tax for the NFT or token?

Accepted Answer

Apart from normal fees charged by exchanges, bozo Hybrid does not collect any royalties on NFT sales, or buy tax or sell tax on token trading therefore reducing friction for buyers and sellers.

What are the Bozonomics (Tokenomics)?

1. What is Hybrid DeFi?

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2. How does the NFT deflation work?

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3. What is Cross market arbitrage liquidity injections?

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4. What is the two-way liquidity portal?

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5. How did we create a trustless, permissionless and decentralised OTC market for $bozo AND eliminate slippage?

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What is Bozo

1. What is bozo Hybrid?

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2. How does bozo Hybrid solve the problem of price slippage for whales?

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3. How does bozo Hybrid solve the OTC desk trust problem?

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4. Why does the EXq…guc address hold a large number of Bozo NFTs and $bozo tokens?

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5. How does the swap between the NFT and tokens work?

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6. What does inscribed on the Solana blockchain mean?

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7. What is special about the bozo NFT?

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8. Why is the bozo NFT deflationary?

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9. What is the total token supply for $bozo?

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10. Is the $bozo ticker permanent?

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11. How does the market cap of the NFTs compare to that of the tokens?

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12. What will give a better return, 1 NFT or 800.000 tokens?

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13. Does this mean that if I hold 800.000 tokens or 1 NFT, they can always be exchanged for one another?

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14. Should I get the bozo NFT or 800,000 $bozo tokens?

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15. Are there any royalties, buy tax or sell tax for the NFT or token?

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Definitions

1. What does trustless mean?

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2. What does permissionless mean?

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3. What is slippage?

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4. What is OTC?

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5. What is friction?

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6. What is arbitrage?

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7. What is a Fair Launch?

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8. What does deflationary mean?

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