Fungify integrates a marketcap weighted NFT index and an algorithmic lending protocol to address liquidity challenges in the NFT and DeFi sectors. It features a MarketVault for automated liquidity provision to NFT holders, enabling instant sales or loans against NFTs. Additionally, Fungify introduces an NFT Index Token, $NFT, providing exposure to a curated set of NFTs, with staking yields from borrowers, and backed by NFTs in the MarketVault. This setup aims to unlock NFT ecosystem liquidity by merging DeFi functionality with NFT assets.