The NIFTEX protocol creates ERC20s in return for NFTs. These ERC20s are referred to as "fractions" and more informally "Shards".
At a high level, the NIFTEX fraction lifecycle comprises the following steps:
Setting up the fractionalization through a frontend (e.g. via niftex.org);
Transferring the NFTs into custody;
Distribution of the fractions via a sale or other methods;
Recovery of the NFT via various methods, usually a "buyout".
NIFTEX v2 aims to be a permissionless on-chain service, meaning users will not depend on a centralized entity at any step in the lifecycle. The website at niftex.org is maintained by the NIFTEX team and can be fully replaced by alternatives.
NIFTEX v2 uses modules in order to ensure flexibility and extensibility as fractional ownership continues to evolve in the NFT space.
NIFTEX v2 uses a custom bonding curve to provide optimal market conditions for NFT fractions.