Problem
Two major problems prevented the NFT market from having persisted with the bear market. - Low liquidity and lack of liquidity infrastructure; - Inefficiency of the Ethereum network; All of the liquidity in the NFT market comes from trading on marketplaces like OenSea and Blur. They are similar to orderbooks where people list NFTs for sale or make bids for those collections. However, the scenario often shows a giant spread between bids/asks of more than 30%-40% and some collections don't even have bids, just NFTs for sale, without any liquidity for you to sell them later. This low liquidity drove speculators away from this market and they focused on more liquid markets, such as memecoins. Another point is that the NFT market spread on the Ethereum network in the years of 2021/22. However, due to the inefficiency of the network and the emergence of other EVM chains, users left Ethereum to access these other ecosystems and the large NFT collections were trapped in this “dead” chain.
Solution
NFT AMM: We propose to solve the liquidity problem of the NFT market in the same way that Uniswap solved the liquidity problem in DeFi in 2018/19 with the AMM Uniswap V2 (Constant Product Market Maker - CPMM) solution, this technology guarantees liquidity for token exchanges at any price range, so if a token is worth close to zero to thousands or millions of dollars, the liquidity pool adjusts and guarantees purchase/sale liquidity for traders. This technology is widely used in DeFi and is now widely used in the memecoin market, and all memecoins are born with basic liquidity guaranteed by this type of pool. We are bringing exactly this same technology to the NFT collection market, assuring speculators that they will have the liquidity to buy/sell NFTs whenever they want. With our NFT Bridge we will unlock the BlueChip collections that are tied to the Ethereum network without users, opening doors to other hotter chains such as Base, Robinhood, etc.
Business model
NFT AMM: modular fee, currently in 2,5% of trading fees, an acceptable standard in the NFT market. NFT Bridge: the) modular bridge fee per NFT submitted (1~2 dollars) b) Royalty of 0. 5% In the secondary sale if 1 Crypto Punks pass our bridge to the Base network and be sold on OpenSea, we will receive approximately 300 dollars for that one sale. Secondary Products: Farming a) $100 campaign creation fee b) 1% of the capital allocated for the distribution of Marketplace Aggregator incentives In most cases we do not charge Fees, but in complex transactions brokered by our aggregator we charge 0. 5% by Fee. DEX Aggregator we also broker fungible token swaps like ETH/USDC we charge 0. 3%
Market
Today, with the market considered dead, it is in 6 billions USD. However, it has already been worth more than 390 billions of dollars and is historically the largest market explored to date in Web3 and the most responsible for onboarding new users to Web3 and self-custody.
Competitors
Liquidity for assets and for NFTs: OpenSEA/Blur - major players where this asset class (NFTs) are traded today. Uniswap and other DEXes - major liquidity providers for the token market in DeFi. Notable cases: NFTX and SudoSwap, developed solutions similar to ours, focused on the same pain. However, what we bring is still quite different from what they offer/offered. Regarding NFT Bridge: There is no widespread NFT Bridge on the market today, the vast majority of users have never used this type of solution and when it existed they were specific, made for specific collections.
Competitive differentiation
OpenSea and Blur are traditional marketplaces, while our NFT AMM brings the DeFi liquidity model to the NFT market. • Native and programmable liquidity: on-chain pools with TVL and liquidity 24/7, allowing farming, liquidity mining, incentives and new financial products. • Integration with DeFi: we connect NFTs to traders, bots, and arbitrators, bringing existing capital, users, and strategies in the DeFi ecosystem. • Market efficiency: on-chain pricing and arbitrage between different venues help improve price formation and market efficiency. • NFT Bridge: allows moving NFTs between different blockchains, connecting ecosystems and expanding access to liquidity. Our differential is to transform NFTs into assets with programmable liquidity and native integration with DeFi.
Entry barrier
Our main barrier to entry is liquidity and the network effect. The greater the liquidity and volume in the pools, the more attractive the protocol becomes for traders, arbitrators, and liquidity providers, creating a cycle that is difficult to replicate. Our goal is to build deep liquidity for major NFT collections, such as CryptoPunks and Bored Apes. Being an early mover allows us to conquer this liquidity before competitors and, with greater adoption, reduce the cost necessary to maintain and expand that liquidity. Additionally, strategic partnerships with blockchains can significantly broaden that moat. For example, a chain could distribute incentives or airdrop points to users who bridge specific collections and provide liquidity in our pools. This creates a Top Down distribution of liquidity and users that new competitors would struggle to replicate.
Traction
they are not relevant data, but they are already completely tracked via DeFi Analitic Tools such as DeFi Llama and Dune