# What is a NFT x TOKEN Liquid Hybrid?

## What is a NFT x TOKEN Liquid Hybrid?

CHONK is a game changing DEFI innovation that merges NFTS and an ERC-20 token into one cohesive ecosystem.\
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Our bidirectional NFT swap system seamlessly merges the NFT and token markets, creating a hyper deflationary NFT with unique game theory dynamics.\
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Addressing the liquidity challenge in the NFT realm head-on, we've introduced a solution that distinguishes us in the DEFI world.\
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At CHONK, we're not only advancing DeFi, we're shaping the future of NFTs.

{% hint style="success" %}

#### To those wondering, this is NOT an ERC-404 project. 

#### Instead, the best way to describe it is as a collateralized NFT that has a redeemable liquid value at any time by locking your NFT in the two-way escrow (swap) contract. With this mechanism, the floor price of the NFTS will correlate with the price of the token(s) as each NFT held by wallets has a "liquid value" attached to it.

#### Additionally, the NFT collection will become hyper-deflationary over time as users elect to lock up their NFTS and claim the corresponding tokens in return.

{% endhint %}

<figure><img src="https://3467005070-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FCUQZakHawYWeqofeaFBl%2Fuploads%2FYhtGgPp6lKztsePDd2DD%2Fchonk%20logo.png?alt=media&#x26;token=9ac9c045-6bf9-4bce-8174-8d5d9dcee345" alt=""><figcaption></figcaption></figure>

### Learn more about how Hybrid NFT//Tokens work in the following pages!


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