What is NFTPerp? Find out the details of the first NFT derivatives exchange on Arbitrum

• What is NFTPerp?
• The difference of NFTPerp
• Optimizing the trading experience for users
• Unique transaction fee model
• Development roadmap
• Developers and investors
• NFTPerp's Tokenomics
• Conclude

What is NFTPerp?

NFTPerp is the first NFT derivatives exchange using the vAMM (Virtual Auto Market Maker) mechanism on the Layer 2 Arbitrum platform . The vAMM model will eliminate liquidity providers on the platform, replacing traders head-to-head (PvP).

Today, Blue-chip NFTs cost up to tens of dollars and this is a huge number for retail investors. This has created a big barrier that makes it impossible for small investors to access Blue-chip projects. NFTPerp was born to solve this problem. NFTPerp allows users to do Long/Short NFT Blue-chip collections like CryptoPunks , Bored Ape Yacht Club , Doodles… with up to 5x leverage. 

Although, the features on NFTPerp are currently in the Private Beta stage, so they are quite simple, but still equally useful, making it easier for traders to control positions. Features include:

• Open a Long/Short . position
• Lever adjustable up to 5x
• Funding rate
• Minimum Slippage 0.5%
• Volume of position creation according to investor's needs (paid in WETH)
• Trollbox chat frame
• Frame showing position, transaction history and Funding rate history

The difference of NFTPerp

Optimizing the trading experience for users

NFTPerp has been audited by PeckShield and brings some of the following advantages and products to users including:

• A smooth, fast and low-cost transaction experience on the Arbitrum network with the security of Ethereum.
• Always ensure full liquidity for the protocol even if there are no liquidity pools.
• Oracle integration to provide accurate NFT pricing in real time.
• Enabling retail investors to access NFT Blue-chip collections based on a small amount of capital without having to own NFT.

Unique transaction fee model 

NFTPerp's revenue is earned from a trader's liquidated position. Every time there is a transaction, NFTPerp will collect a transaction fee of 0.3% and this transaction fee will be divided as follows:

• Insurance Fund: 0.15% 
• Project Pool: 0.075% 
• Those who Stake the project's tokens: 0.075%
• If Index Price is greater than True Floor Price by 2.5 - 5%: NFTPerp will charge 1% for Long position and 0.1% for Short position 
• If Index Price is more than 5% higher than True Floor Price: NFPerp will charge 5% fee for Long position and no fee for Short position

NFTPerp also applies a Funding fee to adjust the price of the Index Price as close to the True Floor Price as possible in the spot market.

• If the True Floor Price is greater than the Index Price, those who open a long position will pay those who are opening a short position
• If the True Floor Price is less than the Index Price, those who are holding a short position will pay those who open a long position

Development roadmap

During the end of 2022 and 2023, NFTPerp has many product development plans such as:

• Developing partnerships with NFT Lending & Borrowing platforms
• Token issuance
• Stucture Finance product launch
• Official mainnet version NFTPerp V1
• Introducing the NFT Index Derivatives

Developers and investors

Currently NFTPerp has not revealed the identity of the development team. TraderH4 team will monitor and update this information if the project is announced.

On November 25, 2022, NFTPerp completed a Seed round and raised $1.7 million, raising the project's valuation to $17 million with the participation of Dialective, Maven 11, Flow Venture and VCs other. 

NFTPerp's Tokenomics

Currently, NFTPerp is in Private Beta and has not announced the Tokenomics design yet. However, according to official information, the project is having incentive rewards for traders on the platform through VNFTP Vouchers. In the future, users can use these Vouchers to exchange for the platform's token, NFTP. Some features of VNFTP Vouchers:

• Non-transferable
• Completely On-chain
• Join NFTPerp governance before tokens and have a chance  

Conclude

Above is some information about the first NFT derivatives exchange on Arbitrum – NFTPerp. The project is initially creating a derivatives market for NFTs. This increases the use cases of NFTs. At the same time, NFTPerp also makes it possible for retail traders to access tens of millions of USD worth of Blue-chip NFTs without owning those NFTs.  

If you are interested in the NFTPerp project, you can follow more social media channels below:

Website | Twitter | Medium

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