Teach me about Crucibles
A Crucible is an ERC-721 NFT (Non-Fungible Token) which is minted via crucible.wtf (How do I mint a Crucible). Crucibles are stored in an Ethereum wallet and can be used as a smart wallet for other ERC20 tokens.
This gives two immediate benefits;
- 1.Separate asset management between Crucibles while maintaining a single wallet
- 2.The ability to transfer your Crucible with its contained assets between wallets in a single transaction.
So understanding that a Crucible is able to hold ERC20 tokens, this also opens the possibility to store LP tokens within a Crucible as well. LP tokens are commonly used to participate in staking programs and earn some form of rewards. Taking part in these staking programs would usually mean transferring custody/ownership of your tokens in order to accrue rewards.
Crucibles allow you to do things differently, in addition to being a smart wallet, Crucibles also contain a vault mechanism that allows you to stake your tokens to non-custodial reward programs, locking them within the Crucible until you leave a program — i.e. earn rewards without giving up possession of your tokens.
Not only is your Crucible smart and capable, it also has artwork that is able to evolve over time based on your activity.
It stands for Non-Fungible Token. "Non-fungible" means "unique" unlike a standard token which shares the same token address, an NFT has it's own unique address.
NFTs are a direct contrast to coins:
- Coins: 1⚗️ is 1⚗️, they have equivalent value and use
- NFTs: a Crucible NFT is not equal to another Crucible NFT and it is very unlikely that any two Crucibles have equivalent value
This is an important point to understand, because people have already started listing their Crucibles for sale on platforms such as OpenSea.
Crucibles have been designed to hold all types of ERC20 tokens including those with an underlying value such as an LP token. Crucibles can also store ETH, so when determining the value of a Crucible, its underlying assets will have a direct impact on its value.
Assets that are also 'staked' or 'subscribed' to programs within a Crucible may have accrued rewards which have been unclaimed, this is a further measurable value that can be considered when evaluating a Crucible.
At a minimum, you could value a Crucible based on what you would receive back for unsubscribing its LP contents and trading back to your fiat currency.
There are many benefits for owning and using a Crucible but a few key factors to consider.