DIA xFloor: Transparent, Customizable NFT Floor Price Oracle
DIA xFloor provides smart contracts with real-time price feeds containing the value of NFT collections, facilitating Web3 builders to easily integrate NFTs into the DeFi ecosystem, enabling capital efficiency and driving mass adoption.
Update June 30, 2022: DIA xFloor gets expanded to support data feeds for NFT Floor Price Volatility, Weekly Drawdown, Moving Average and more. dApps can easily integrate DIA xFloor oracles to build more NFTfi use cases. Check all DIA xFloor data feeds in the DIA Documentation here.
Overview of NFT Landscape
NFTs have taken the crypto world by storm in 2021, with almost $41 billion spent on NFT marketplaces in the same year. Since then, non-fungible tokens have conquered major digital asset exchanges like Binance and made it to mainstream social media platforms like Twitter or Instagram. Even though this has attracted the interest of a broad user base to the space, there is a barrier to entry for new investors and developers: accurately evaluating an NFT collection’s value.
On one hand, unlike fungible tokens like ETH or BTC, NFTs tend to have lower trading volumes or even none at all, making them highly illiquid assets. On the other hand, as new NFT collections enter the space every day, it’s a resource-intensive task for users to research, compare and evaluate the risk of collections. And lastly and most importantly, NFT collections, especially low-priced ones, are commonly price manipulated via common techniques such as wash trading (trading own NFTs) or sweeping the floor (bulk buying NFTs).
These three major obstacles result in an unbearable effort for the average user to assign a value to NFT collections, creating a significant entry barrier for investors and developers.
What is an NFT Floor Price Oracle?
An NFT floor price oracle provides smart contracts with real-time floor price information of NFT collections. An NFT floor price represents the lowest entry price for an NFT within a collection, and it has become one of the most widely used metrics for collectors and investors to help in valuing NFT collections.
NFT floor price oracles represent a crucial building block for Web3 as they facilitate NFTfi use cases. This enables NFTs to be leveraged for DeFi applications such as lending and borrowing, peer2pool, staking and swapping, and many more.
Introducing DIA xFloor: Bridging DeFi & NFTs
Delivered via API or oracle smart contracts, DIA xFloor provides smart contracts with real-time price feeds containing the value of NFT collections. The feeds are calculated by leveraging trade data, directly sourced from multiple markets, and applying customizable pricing methodologies.
By bringing reliable NFT price information on-chain, DIA xFloor will enable Web3 builders to easily integrate NFTs into the DeFi ecosystem, enable capital efficiency and drive mass adoption.
NFT Pricing Methodologies
In order to supply dApps with the most reliable NFT floor prices, DIA xFloor offers multiple methodologies for NFT assets pricing:
The floor provides the lowest sale price of an NFT collection, recorded on the blockchain during the determined time window.
Moving Average of Floor Price
It will return the moving average of the collection’s floor price for the selected period based on the specified floor window. Additionally, DIA applies an interquartile range outlier detection filter which allows for determining more realistic market prices. More about IR filter.
Max Weekly Drawdown
It provides the maximal weekly drawdown in the last 90 days, displayed in percentage. In simpler terms, it looks for the largest weekly negative price movement during the last 90 days.
Additionally and when requested by users, custom filters and price methodologies can also be delivered. DIA applies outlier detection filters for the NFT floor price data and can produce custom price methodologies on demand.
Direct and transparent NFT data sourcing
DIA xFloor is capable of determining NFT price by pulling historical sales data directly from the NFT marketplace’s smart contracts on its respective network and applying fully transparent data processing methodologies. By directly listening to the blockchain transaction and fetching data from the origin, DIA xFloor ensures full data accuracy and transparency.
As DIA tracks data from multiple NFT marketplaces including OpenSea, Looksrare or TofuNFT, DIA xFloor currently offers support for almost 20.000 NFT collections. DIA is constantly adding new NFT sources.
Case Study: Zumer Protocol
Zumer Protocol has successfully integrated DIA’s NFT Floor Price oracle services into its testnet environment. The custom NFT floor price oracle will feed the Zumer protocol with accurate and timely NFT price feeds for various collections including Bored Ape Yacht Club, Crypto Punks, Mutant Ape Yacht Club and many more. The oracle will play a critical role in the operations of the liquidity protocol for collateralized lending of NFTs.
→ Learn more about the integration in the following case study.
“We are thrilled to partner with DIA and incorporate its price oracle into Zumer’s risk model. DIA’s multi-chain NFT oracle solution will be key to driving the growth of NFT financialization. We remain confident in the outlook of the NFT market and are committed to building the infrastructure needed to scale the financial backbone of an Open Metaverse.”SY ChanSumeria Labs CEO
Are you a developer interested in building a use case with DIA xFloor? Explore 18,000+ floor price feeds available in the DIA App:
Request custom NFT floor oracle
Get in touch with the DIA BD team to set up a custom NFT floor oracle for your dApp. The oracle will be deployed with tailor-made parameters such as custom methodology and update frequency to best match your needs.