❓FAQs

Nail the Fundamentals

1) What is a Non-Fungible Token (NFT)? NFTs can be thought of as digital passes that represent ownership of a one-of-a-kind digital item, such as a video, song, in-game object, or work of art. The blockchain is where these digital passes are stored (an immutable digital ledger). Once an NFT is created or "minted," its code is permanently woven into the blockchain, and it can be traded on a marketplace with a digital currency (cryptocurrency) - ETH, SOL, and so on.

2) What is the difference between an NFT and a Cryptocurrency? NFTs and crypto are similar in that they both use blockchain technology and cryptography. But that's where the resemblance ends. Physical cash and popular cryptocurrencies, such as Bitcoin and Ethereum, are both 'fungible.' They can, in other words, be traded or exchanged for one another. However, NFTs are 'Non-Fungible,’ meaning they are unique and cannot be replaced with anything else. One NFT is not the same as another.

3) What is a Derivative?

A derivative is a financial instrument whose value is determined by one or more underlying assets, such as stocks, bonds, commodities, currencies, interest rates, or market indexes. Derivatives enable investors to speculate on underlying asset price movements or hedge against potential price movements.

4) What is a Perpetual?

Perpetuals are a type of derivative contract that allow traders to speculate on the future price of an underlying asset with no expiration date. They are similar to traditional futures contracts, but do not have a fixed expiration date. Instead, they use a mechanism called "funding" to keep the contract's price in line with the spot price of the underlying asset.

5) What is NFT Perpetual?

NFT perpetual, like traditional contracts, allows traders to speculate on the underlying asset's price without owning it. NFT perpetual will enable investors to speculate on non-fungible token derivatives without owning them. They also facilitate traders to leverage their positions, allowing them to trade with a larger size than they would be able to with just their own money.

6) What is the Floor Price of an NFT?

Floor price in the NFT industry refers to the minimum price at which an NFT can be sold. The floor price is usually determined based on the demand for the NFT, the perceived value of the NFT, and the costs associated with creating and selling the NFT.

7) What is NFTFN?

NFTFN is a Web3 fintech company dedicated to democratizing access to Blue-Chip NFTs for the average individual by building a suite of innovative products around non-fungible tokens (NFTs), starting with our first product - SuperNova(SNV).

8) What is SuperNova?

SuperNova is the name of the tradable index, which is an assorted basket of five blue-chip NFT collections - BAYC(Bored Ape Yacht Club), MAYC(Mutant Ape Yacht Club), Azuki, CloneX, and Doodles, all of which are calculated based on the geometric mean of the floor prices of these 5 blue-chip projects.

9) Can I use NFTFN on my mobile device?

Yes, NFTFN is compatible with both desktop and mobile devices.

10) How do I report a problem or issue on NFTFN?

Suppose you are experiencing a problem or issue. You can contact our support team through the "Contact Us" page on the website or by emailing [e-mail].

11) Could you clarify whether NFTs can be used as collateral, or is the price peg the only factor considered in this perpetual product?

This perpetual product relies solely on the floor price of NFT projects for the underlying, with no actual NFTs being sold or used as collateral. The option for retail users to bring in their NFTs as collateral may be available in later financial products, but these projects will be highly curated.

12) How does the platform maintain decentralization when NFTFN determines the "Blue-Chip" status?

The "Blue-Chip" status is determined through geometric mean by an internal quant team, with additional support from the Bitscrunch partnership. Initially, the founding team will decide on the status based on a thesis that will be made publicly available on the website. Future policies for selecting NFTs will be similar to those of DPI, with the potential for the DAO to make decisions at a later stage.

13) Given the order-matching issues that dexes experienced before the AMM algorithmic solution based on LPs, how does the platform facilitate high-frequency trading?

The platform facilitates off-chain order matching, similar to market leaders such as DyDx which offer to trade on starkware and optimism. While blockchain speed still limits trade settlement, being on L2 can help mitigate these issues.

14) How do you fetch the NFT floor price?

The NFT floor price is determined using a robust Oracle system that ensures accurate and real-time data feeds. This oracle, operated by NFTFN, is configured to execute periodic tasks at set intervals of every 5 minutes. These tasks retrieve essential data from a trusted NFT bank API through a dedicated Oracle infrastructure. NFTFN has collaborated closely with the NFT bank to establish a dependable source of real-time NFT price feeds.