Anderson
In September 2025, the NFT Strategy model was launched, pioneered by the $PNKSTR token from Tokenworks. This model is a 'perpetual motion machine' that creates a self-reinforcing flywheel between token trading and NFT accumulation. As we analyze at Cyberk, the NFT Strategy is poised to create a new revolution for NFTs, enabling users with limited capital to participate in the blue-chip NFT ecosystem without requiring them to spend hundreds of thousands of dollars for ownership. To implement an NFT Strategy project, we leverage two core technologies: DLMM (Dynamic Liquidity Market Maker) and the Uniswap v4 Hook
Instead of distributing liquidity thinly and inefficiently, the DLMM (Dynamic Liquidity Market Maker) mechanism allows Liquidity Providers (LPs) to concentrate capital into target price ranges and automatically adapt to market volatility. The mechanism works on the Liquidity Book and Bin Architecture, where every “bin” represents a fixed price. Those advantages bring better capital usages and prevent impairment loss—a concept we frequently explore in our DeFi market research.
By leveraging Hooks from Uniswap v4, developers can customize and create focused LP pools with specific functionalities. Every pool can have one hook but a hook can serve an infinite amount of pools to intercept and modify the execution flow at specific points during pool-related actions.
The NFTStrategy era started in September 2025 where Tokenwork launched $PNKSTR—an automated trading protocol exclusively for CryptoPunks, the OG NFT collection from 2017. At its core is a “Strategy token”—a “perpetual machine” that creates a self-reinforcing flywheel between token trading and NFT accumulation.
Here’s how the flywheel spins:
NFT Strategy tokens generalize this model: They’re ERC-20 wrappers for any ERC-721 collection, generating “programmable buy pressure” via fees that fund floor sweeps and burns. Unlike passive holding, they turn NFTs into active DeFi engines, with royalties (1% of trades) flowing back to creators.
Building this requires advanced Smart Contract Development. The architecture of an NFT Strategy project can be divided into two main parts:
First, the developer adds an initial amount of liquidity to ensure smooth swapping. When a user executes any transaction, an approximately 10% fee is imposed on each order. That’s why in Uniswap interface, you can only trade when the slippage is higher than 10%
Below is the detailed, end-to-end workflow of how the model functions:
Hooks and DLMM are very powerful innovations. This design considerably lowers the barrier to AMM experimentation, as we've seen with other complex DeFi protocols like Balancer V2, customizing concentrated liquidity mechanisms requires rigorous security practices to prevent exploits. By strategically leveraging the Dynamic Liquidity Market Maker (DLMM) structure alongside the Uniswap v4 Hooks framework, we unlock unparalleled efficiency and programmability by developing our own NFT Strategy products. For founders looking to develop their own NFT Strategy products, Cyberk provides the deep technical expertise needed to build these custom hooks and secure trading engines.
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