# What is Hybrid DeFi?

## Definition:

The unification of non fungible and fungible assets into one state-changing hybrid token.

## Infographic Representation:

<figure><img src="/files/MycsGwALSMKHJDc2kTZW" alt=""><figcaption></figcaption></figure>

## Benefits of Hybrid DeFi:

| Hybrid NFTs                                          | 2-way Hybrid Swap                                                   | Hybrid Tokens                                            |
| ---------------------------------------------------- | ------------------------------------------------------------------- | -------------------------------------------------------- |
| Wraps tokens into 1 asset                            | Swap between NFT or Fungible token at ANY time                      | <p>High supply & divisibility<br></p>                    |
| Allows for transacting tokens in bulk                | Enables instant liquidity for NFTs                                  | Unlimited distribution potential                         |
| Trading with no negative price impact on token chart | Trustless & automated escrow system via on-chain program            | Low unit bias                                            |
| Tradable on Magic Eden, Tensor, OKX, etc…            | Can add swap fees, re-roll mechanics & other gamification           | Highly liquid                                            |
| Unique PFP art & rarity                              | Introduces arbitrage opportunities between NFT & token markets      | Exposes NFT collection to DeFi ecosystem                 |
| Can have separate utility & value from the token     | Enables NFT collections to utilize fungible tokens WITHOUT dilution | Tradable on DEX & CEX                                    |
| Floor price & market cap driven by pegged token      |                                                                     | Earn LP fees                                             |
|                                                      |                                                                     | Removes financial barrier to entry, promotes inclusivity |
|                                                      |                                                                     | Capture the attention and volume of “memecoin mania”     |

## Explainer Video:

{% embed url="<https://drive.google.com/file/d/1KADGp4p_9uiFfaMcY67MlQR-Ofuws9bm/view?usp=sharing>" %}


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