Advanced Wrapping Solutions

With the ability to bridge between different chain ecosystem and perform activities like encryption, Insaanity opens the door to advanced wrapping solutions. One such solution is a concept called Gilded NFT’s which enables the wrapping of yield generating assets into NFT’s thereby turning NFT’s with low or no utilities into financial products. This type of gilding is similar to the ancient practice of framing paintings with precious metals to enhance their value.

Such wrapped products have many advantages to the end consumer by simplifying the ownership of crypto assets. By wrapping complex token products into a simple NFT, customers can get exposure to a preset package of products that matches their risk profile. Yields from these products can also accrue directly to the NFT. And, because Insaanity manages the wrapping trustlessly, customers can be confident that no central intermediary can abscond with funds or steal returns. Gilded NFT like solutions can completely change the way consumers own financial assets by simplifying secure custody.

In addition to custody, wrapped assets can also simplify tax treatment of crypto rewards. Since rewards and value accrue to the book value of the NFT, no returns are realized by the consumer until the NFT is sold or the assets are unwrapped. This creates the potential for simplified tax treatments in jurisdictions where complex tax laws make it difficult for users to own yield generating crypto assets.