Perpetual Contract NFT as Collateral for DeFi Composability

Decentralized Finance (DeFi) is an emerging financial service model based on blockchain technology. DeFi composability denotes the ability for different services to interact with one another resulting in new forms of services. The ecosystem largely ERC-20 tokens that can represent value asset. Collateralized assets are locked and additional profit cannot be generated. In this paper, we propose a method generate from by using ERC-721 Non-Fungible Tokens (NFTs) perpetual contracts. NFT represents rights certain A contract futures does not have expiration date. We NFT, form used as collateral, which exploits contracts cryptocurrency derivatives market. Collateral needs provided back contract. If minted its collateral. Therefore, contact itself collateral composability. proof-of-concept smart web application demonstrate functionality. To validate profitability real-world scenario, experiment position Uniswap v3 decentralized exchange. NFT. Specifically, present validation three types pools: stablecoins, stablecoin/wrapped pair, wrapped tokens.