Cover photo

Floorwaves - NFT Derivatives

Our mission:

To allow you to short and long NFTs with as little capital as you want.

The Problem

NFT sales volume totalled $24.9 billion in 2021, compared to just $94.9 million the year before. And it reached $16 billion alone in Jan 2022!! However, some problems still exist in this rapid growing market:

  • Inability to short NFTs

  • Majority unable to long blue-chip NFTs due to high floor price

  • High platform fees

The Solution

A decentralized NFT derivative platform that allows its users to:

  • Short NFT collections based on floor price movements

  • Long blue-chip NFT collections with no floor-price restrictions

  • Avoid high platform fees

Floorwaves aims to be the first decentralized NFT derivative platform where buyers/sellers can open smart contracts to short/long on the fluctuations on floor price of NFTs ( blue-chips only).

Once, the contract is matched by counterview, the sNFT and lNFT 721 tokens will be distributed.

Traders can take exit from positions anytime by listing sNFT and lNFT on the platform.

User Journey

  • Alice sees BAYC floor price as 110 ETH and she is confident of it going down in near future.

  • Bob is having counter view and expects it to go to moon.

  • Alice opens a FW offering on marketplace with given values

    • Floor price: 110 ETH

    • Trade type: Short

    • Margin: 5x

  • As per margin, Alice deposits 22 ETH in the contract.

  • Bob sees the listing in ‘long’ section at 110 ETH and accepts the offer.

  • Bob submits 11 ETH in the contract as he wants to use 10x leverage.

  • lBAYC and sBAYC NFTs are distributed respectively to Bob & Alice.

  • In future, if floor touches 105 ETH and Alice gets comfortable to close its position at 5 ETH profit. Bob lists its sNFT for sale at 105 ETH.

  • The NFT will be listed in same marketplace among other bids/NFTs in ‘short’ section.

  • If Charlie finds offer good & shorts at 105 ETH, Alice’s sNFT will be transferred to Charlie.

  • Charlie can choose the margin of 3x and transfers 35 ETH in the contract. Alice will get 27 ETH (22 margin + 5 profit)

  • Overall, Bob participates in long of BAYC NFT by taking 10x leverage thereby avoiding need of 110 ETH in liquidity & spending 5% in fees (min 5 ETH in this case)

  • Alice gets an opportunity to participate in NFT short market which doesn’t exist yet (that too with leverage).

Launch Date

We are planning to launch our first MVP within a month and we are looking for members in the NFT community to try it out!

Go to our website and drop your email for early access, and we’ll notify you when we are ready for launch!

Links