NFTfi Use Cases Powered by NFT Floor Price Oracles
NFT floor price oracles enable the creation of on-chain financial applications that leverage NFTs, fostering the utility of non-fungible tokens while allowing the maximization of liquidity stuck in NFTs.
Here are some examples of decentralised applications powered by NFT floor price oracles:
Peer2pool NFT Lending and Borrowing
NFT Lending platforms can also operate on a peer2pools basis. Lending pools use an over-collateralization approach where borrowers post NFTs as collateral. The NFT Price Oracle will determine the real-time value of the deposited collateral. This will enables users to borrow funds for a fee for lending, with a market value which is less than the total value of the collateral.
On-chain NFT Derivatives
Very similar to DeFi markets, NFT derivatives represent tradable contracts which allow users to bet on the future valuation of NFT collections. The protocol’s smart contact will be triggered based on the price data supplied by the NFT price oracle. NFT derivatives open a lot of new possibilities such trading high-value NFTs, using leverage to trade NFTs or longing or shorting on the price of an NFT.
In the same way one can rent an apartment or a car, renting NFTs provides an individual with access to an NFT for a limited time. Based on the price supplied by the oracle, NFT owners can list their non-fungible tokens in a decentralised NFT marketplace and earn a passive income from it. On the other hand, the renters can temporarily benefit from the advantages of holding an NFT such as NFT-gated exclusive events or exposing it in galleries.
NFT Fractionalization protocols enable individuals to share the ownership of an NFT by minting tokens that represent shares of that NFT. The price of the shares are determined on-chain and in a permissionless manner by the NFT price oracle. This provides a system for less funded individuals and groups to join and bring liquidity to the space that otherwise could not happen.
Looking for NFT Floor Price Oracles for your dApp?
DIA has built the broadest library of NFT price feeds in Web3, supplying price feeds oracles for 18.000+ NFT collections in a transparent and fully customizable manner.
Start Building with DIA xFloor
- Delivered via API or oracle in 30+ chains, DIA xFloor supplies dApps with real-time price feeds for 18k+ NFT collections.
- DIA xFloor determines NFT prices by pulling sales data directly from multiple NFT marketplace’s smart contracts
- To avoid exposure to wash trades and market manipulations, DIA xFloor can be set up with custom processing methodologies such as the Moving Average of Floor Price.