The NFT Market Still has Huge Potential
In recent years, the rise of Non-Fungible Tokens (NFTs) has marked a significant shift in the digital landscape. They are an embodiment of artistic expression and intellectual property, making each one a unique digital asset. Some NFTs even serve as status symbols, providing personal branding, social identity and a sense of community culture. Furthermore, their financial and investment value is undeniable, offering lucrative opportunities for trading.
The NFT Trading Infrastructures Need Revolution
However, despite the growing popularity of NFTs, the current trading mechanisms in the marketplace are still in their early stages and have room for improvement. At present, most NFT trading occurs in a peer-to-peer form on platforms like OpenSea or Blur. While these platforms have provided a foundation for NFT trading, they lack the necessary liquidity and trading efficiencies to support the rapidly growing market.
Bakery NFTSwap, a ground-breaking platform that is poised to revolutionize how we trade NFTs, making it as efficient as trading tokens.
Bakery NFTSwap - an Innovative Mechanism for NFT Trading
bToken is a new concept to deal with the liquidity issue of NFT trading. It represents NFT collections in ERC-20 format, making NFTs to trade as easily as tokens. The bToken boosts liquidity and functionality for NFT collections, laying the groundwork for NFT finance and extending the adoption of NFTs in a broader DeFi system. The workflow can be illustrated as follows.
- Each NFT collection is tied to a specific bToken in a fixed ratio (e.g. 1:1).
- A liquidity pool of bTokens, paired with ETH or other tokens such as USDT, is established on AMM exchanges like Uniswap.
- A smart contract is created to convert bTokens with the NFTs at the fixed ratio, offering a two-way conversion process. This is referred to as the Conversion Contract.
The trading process is straightforward. When a user buys an NFT using ETH, the protocol purchases the corresponding bToken on an AMM exchange. The bToken is then locked in the Conversion Contract, and the NFT is transferred to the user.
Conversely, when a user sells an NFT, the NFT is sent to the Conversion Contract. The contract then locks the NFT, releases the bToken, and the protocol sells it in the liquidity pool to convert it back into ETH, and finally transfers the ETH back to the user.
One of the unique features of the bToken system is its built-in transaction process. During each trade, a specified quantity of bTokens can be automatically burned or transferred, effectively integrating a royalty fee for NFT transactions. This enables NFT project creators to set their own fee rates and decide whether to burn or transfer bTokens accordingly.
The Benefits of the Novel Mechanism
For users, Bakery NFTSwap offers an alternative to the conventional peer-to-peer trading model. Rather than listing their NFTs, placing bids, or dealing with existing listings individually, users can now trade much more efficiently and smoothly. By leveraging AMM, the new trading model allows users to buy and sell any amount of NFTs directly and immediately at the best price.
For NFT projects, the difficulty of market-making is substantially alleviated. Now, they merely need to provide liquidity through the bToken liquidity pool. This novel mechanism can expand the investor base by bridging the gap between NFT traders and DeFi traders.
Bakery NFTSwap is poised to redefine NFT trading, making the process as simple, efficient, and liquid as token trading. As we launch this exciting platform, we look forward to the many possibilities it will unlock in the NFT landscape.
Product Launching Details
Bakery NFTSwap will first launch on the Base Network in late August or early September. Then it will launch on Ethereum. We believe that it could become a mainstream marketplace for NFTs on Ethereum and be a game-changer in the NFT space.