Pawnfi

Pawnfi operates a decentralized liquidity protocol for what it calls Non-Standard Assets (NSAs): NFTs, liquidity-provider tokens, tokenized rights, minor cryptocurrencies and bundled assets. The protocol combines pawn, lease and sale mechanics with a lending market, an NFT marketplace and staking modules, positioning itself as an all-in-one system for NFT holders, traders and newcomers to trade, lend and earn [0][3][4].

The core mechanism is the P-Token, which represents deposited NFTs as fungible ERC-20-style tokens so that they can circulate in liquidity markets and across the broader DeFi ecosystem without requiring transfer of ownership of the underlying asset. Pawnfi describes P-Tokens as also providing a protective layer for NFTs under extreme market conditions. Additional documented components include interest-bearing tokens (iTokens), a risk framework and price oracle, a lending market with supply/withdraw/borrow/repay flows, NFT flash trading, consignment and offers, liquidity boosting and liquidity incentives, an invitation program, an $APE staking and NFT staking module, and the PAWN SAFE placement mechanism [0][1][3].

The protocol has a native token, $PAWN, with documented incentive policies, voting power and a beta governance process (PIPs and Snapshot voting at pawnfiprotocol.eth). Smart contracts for the PAWN token, marketplace, lending, liquidity boosting, an NFT factory and tooling are published under the PawnFi GitHub organization in Solidity; the organization also hosts forks of Aave v3, Pendle, Aerodrome and Ethena contracts and a repository of documents for a project called "polarise" [1][2].