IotaOrigin Whitepaper NFT pools
Non-Fungible Tokens (NFTs) have emerged as a prominent feature unlocking new views for digital ownership and asset management. However, one of the notable challenges surrounding NFTs is the lack of liquidity due to their unique, indivisible nature, which often restricts the ease of buying and selling these digital assets or digitalized real world assets. Addressing this challenge IotaOrigin introdruces the innovative concept of NFT pools to the ShimmerEVM, aiming to infuse liquidity into the NFT market. This whitepaper delves into the core mechanics, benefits, and potential applications of NFT pools, with a spotlight on how they contribute to enhancing liquidity within the ShimmerEVM NFT ecosystem.
In previous articles we discussed upon the broader forces on the NFT market, examining how NFT pools could reshape the trading landscape and potentially lower the entry barriers for prospective NFT users and creators.
NFT pool mechanics
NFT pools are structured to aggregate liquidity by allowing liquidity providers to pool their NFT assets and SMR token to facilitate a more fluid trading environment on the ShimmerEVM. After providing liquidity, users get returned a LP-Token representing a claim on the pooled assets and any earning accrued from trading fees. Each user creates his own customized NFT pool in which he can define:
- Number of NFTs to be traded.
- Price range in which the pool should trade.
- Start price
- Fees that the pool should earn per trade.
- Spread/Delta that defines the price jumps between Sold/Bought NFTs within the pool.
The core of IotaOrigin NFT pool lies in its automated market maker (AMM) algorithm, which facilitates price determination and asset swaps between all of the users customized pools based on supply and demand dynamics, without the need for a traditional order book. The AMM operates continuously, ensuring that buyers and sellers can interact with the pool at any time to trade NFTs, with the price automatically adjusting based on the pool’s parameters and trading activity.
NFT Vaults
NFT Vaults allow staking of NFTpool LP-Tokens and the additional receipt of erc20 tokens while providing liquidity. Each project or user can create a vault with different NFT pool parameters mentioned above. Users who have the same NFT pool parameters as the Vault can thus farm tokens in addition to their fees. The tokens can belong to NFT projects, release utitlities or enable other innovative tokenomics. NFT projects in turn can incentivize desired parameters, handle their token distribution or release token based utilities for their users while incentivizing liquidity.
Features
In addition, IotaOrigins NFTpools have additional features that can develop their own dyanmics in the NFT-Finance (NFT-Fi) sector on which users, creators and NFT projects can build.
- New Minting features that allow you to reflect changing mint prices such as rising or falling mint prices.
- Creator-owned-liquidity as a counter model to royalties. Projects can own their liquidity from the mint and thus earn fees from the volume of trades.
- NFT pool governance allowing stakeholders to propose and vote on changes to the pool’s operational parameters. This decentralized governance fosters a community-driven ecosystem ensuring the alignment of interests, innovation and continual optimization of the pool’s operations.
- Interporability. NFT pools can be designed to interact with other DeFi protocols and platforms, expanding the utility and accessibility of NFTs within the broader decentralized finance ecosystem.
- Order Pools can be set to buy only or sell only multiple NFTs at specific pool parameters. these are executed as soon as the market reaches the price range allowing users to set up different trading strategies.
Coming features:
- Governance on $Aureus distribution
- NFT Launchpad
- [Redacted]
- [Redacted]
- [Redacted…]
Benefits
NFT pools provide a structured, automated, and community-driven environment that addresses the liquidity challenges inherent in the NFT market, making them a pivotal component in the evolution of the NFT and broader DeFi landscape. In addition:
- NFT liquidity leads to higher volume and instant swaps which also result in better asset performance as user confidence increases in liquid markets.
- Market efficiency through AMM algorithm resulting in low fees for users (0.5% platform fee)
- New tokenomic models for innovative NFT projects.
- New revenue models for NFT projects that reduce dependence on royalties. Royalties lead to low liquidity and inhibit innovation through a lazy tax.
- New Mints & Creator-owned-liquidity promotes innovations and prevents rugging after mint allowing users and projects to achieve better results.
- Enabling the real world asset space to market maturity.
Tokenomics
IotaOrigins NFT pools are built on competitiv tokenomics with the focus of the soul and core of the ecosystem, users, creators and builders. Good tokenomics always favour the ecosystem.
Leaderboards
IotaOrigin core incentive programs focus on NFT liquidity mining through Vaults. Two leaderboards decide the distribution of $AUREUS tokens. One leaderboard for new mints based on TVL and one leaderboard for the highest volumes per collection traded on the platform. This way, users get access to the most innovative launches over a rolling period as well as higher fee income from the most traded collections. Furthermore creators and developers are incentivized to launch new innovative products on the platform and get bootstrapped by the ecosystem. The top 20 mints and collections will be promoted over a period of 1 month. Each month, the top 20 leaderboard will be determined again based on on-chain data.
In the future, the mint program will be switched to $Aureus mints only. In addition, the volume-based program will be switched to an $Aureus governance program. Thus $Aureus holders will have access to the most innovative mints for free as well as the utility over the distribution of the funding programs. NFT projects on the other hand can incentivize their liquidity and give their farmers better farming conditions compared to their competitors, thus also incentivizing NFT projects to use the $Aureus token in governance for their own NFT pools. In addition, the tokenomic system incentivizes the lending of $Aureus to third parties who wish to participate in the governance process, also called bribing. This enables further utilities for $Aureus holders/lenders within the DeFi ecosystem.
Goal
The highly competitive nature of tokenomics enables innovative and robsute NFT projects to prevail and thus promotes the quality of the ecosystem in the long run. On the other hand, it protects the ecosystem from uncompetetive or innovation-weak technologies. IotaOrigin has the overarching goal to deliver value to the ecosystem’s participants by using $Aureus. In this way, IotaOrigin NFT joins forces not only to innovate, but also to remain innovative in the long run. Achieving to build a DEX that will also be ready for the coming real world asset space. New future DEXes will not trade tokens anymore, they will trade NFTs.
Community allocation:
(57% | 922.279.373,160 Aureus)
- Creator mint based NFT liquidity mining program. 4 years, monthly vested.
(20% | 323.606.798 Aureus) - Creator volume based NFT liquidity mining program 4 years, monthly vested.
(20% | 323.606.798 Aureus) - IotaOrigin NFT liquidity mining program 3 years, monthly vested.
(8,082% | 130737146,23 Aureus) - $Aureus liquidity mining program 1 year, monthly vested. (6% | 97082039,28 Aureus)
- IotaOrigin NFT Airdrop (2,918% | 47214231,76 Aureus)
Ecosystem fund:
(15% | 242.705.098 Aureus)
- Ecosystem fund allocation 3 years, monthly vested
( 15% | 242.705.098 Aureus)
Team allocation:
- Team allocation 3 years, monthly vested.
(20% | 323.606.798 Aureus) - Cap Table allocation 3 years, monthly vested.
(8% | 129.442.719 Aureus) - (25% Team bonus from ecosystem fund when $Aureus reaches $1 billion market cap.)
