> For the complete documentation index, see [llms.txt](https://coinavatar.gitbook.io/coinavatar/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://coinavatar.gitbook.io/coinavatar/overview/problems-and-solutions.md).

# Problems & Solutions

In our endeavor to reshape the perception of Non-Fungible Tokens (NFTs), we are striving to transform them from being seen as mere transient digital art into credible financial instruments. Presently, NFTs are often perceived as a bubble that lacks real value, an ephemeral asset that could plummet in price at any moment.

## We identified four key problems

1. **Lack of Utility:** Traditional NFTs have limited use-cases beyond their aesthetic appeal as digital art. This lack of functional utility severely restricts their potential value.
2. **Pricing Instability:** Traditional NFTs often face large price changes, driven by popularity rather than utility. This volatility complicates their use in DeFi, increasing risks and instability.
3. **Lack of Liquidity:** Traditional NFTs suffer from limited market liquidity, making it challenging for owners to rapidly convert these assets into cash or other liquid forms.
4. **High LTVs Barrier:** For accessing higher Loan-To-Values in NFT-backed DeFi, users are required to possess high-value 'blue chip' NFTs, limiting opportunities for a broader audience.

## Solution and benefits 

1. **Enhanced Utility:** 

* Each NFT Сoin represents a 1:1 staked cryptocurrency via CoinAvatar;
* Each Coin generates high yields through liquid staking;
* Each Coin remain liquid and can be further utilized in NFT-backed DeFi to maximize yield;

2. **Fixed Floor Price:** 

* Each Coin comes with fixed floor price due to the locked-in crypto;
* Fixed floor price enables up to 95% LTV in NFT-backed DeFi;
* Coin price cannot fall below the value of the locked-in crypto;

3. **Instant Liquidity:** 

* Users can dissolve their Coins on CoinAvatar anytime to access the funds locked within it;
* No need to wait for a buyer to get liquidity;

4. **High LTVs for everyone:** 

* No need to buy expensive NFTs anymore to access high loans; 
* Our Coins, with investments as low as 100 USDT, enable users to obtain high LTVs of up to 95%;
* CoinAvatar lowers the entry barrier and fosters mass adoption;

We're leveling up our NFTs. Now, they're not just digital tokens you collect. They come with their own power-ups: high-yield rewards through DeFi staking. This upgrade means stability, real value, and an epic journey towards rewards in our digital realm.

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