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Metaplex, a Solana-based protocol that allows for the easy deployment of NFTs across applications, has introduced MPL-404, a hybrid decentralized finance standard. MPL-404 leans on SPL-404, a protocol that allows for the exchange of an NFT for a fixed number of tokens assigned by the designers of each artistic collection.
Metaplex Aims to Extend Hybrid Defi Adoption in Solana
Metaplex, a protocol that eases the distribution and deployment of non-fungible tokens (NFTs) on top of the Solana blockchain, has announced the introduction of Metaplex Program Library 404 (MPL-404). MPL-404 is a protocol that brings the hybrid functionality pioneered by the Solana Program Library-404 (SPL-404) that Mutant Labs built.
The SPL-404 standard is commonly referred to as a hybrid NFT protocol, given that it allows for the seamless transformation of non-fungible tokens to fungible tokens and vice versa, according to values defined by the creators of each NFT collection. For example, an Alligator NFT can be exchanged by a determined number of Alligator tokens, which can be exchanged for other tokens or used to repurchase another NFT of the collection.
This functionality allows for extended use cases of NFTs, including the dynamic trait re-rolling for NFT projects, loot-box style mechanics for Web3 games, and on-chain identities for token communities.
The joint development between Metaplex and Mutant Labs will be solidified with a rollout of applications that allow Solana programmers to leverage SPL-404 more easily, widening the adoption of this hybrid defi standard. Metaplex’s goal with this new implementation is to ensure that Solana remains “the premier chain for digital assets and Web3 communities.”
Mutant Labs stated that, given the complexity this new functionality will bring to the NFT space, they are working to provide guides to help creators understand and navigate this hybrid world. Also, they will provide their take on issues like token rarity and toke liquidity.
What do you think about Metaplex’s alliance with Mutant Labs and the production of MPL-404 for hybrid defi assets in Solana? Tell us in the comments section below.