nftperp - NFT perpetual futures dex

harryji (79)adminYour Wizardin Harry Potter Library • last year (edited)

What is NFTPerp and why should you care?

There’s no denying that NFTs (especially jpegs) have become a big part of web3. Whether you’re in it for the tech, the art, or just being part of amazing communities, there’s no denying the capabilities of NFTs.

However, a lot of NFT holders are also in it solely for the gains. We call them speculators. The idea of flipping NFTs has in a way brought in enormous newbies to the web3 communities.

WAGMI or NGMI? This is something that a lot of NFT chads and degens think about daily.

nftperp looked at the current NFT speculation environment and identified a few problems:

Blue-chip NFTs like BAYC and CryptoPunks are far too expensive for 99% of web3 communities to get involved. Most people don’t have 80-100 ETH sitting in their wallet for buying jpegs. It becomes a “whale only” type of asset that retail investors can’t get exposure to.
There’s no way to short NFTs for those that are bearish or those that simply want to hedge their positions.
Profiting from trading on OpenSea is difficult because the aggressive platform fee + royalties. Traders need to be up at least 7.5% just to break even.

What is nftperp?

nftperp is an open-source defi software created for all web3 users. nftperp’s core product is a decentralized exchange to long or short blue chip NFT projects such as BAYC, CryptoPunks and more.

With nftperp, you can also -

Trade blue-chip NFTs with any amount of collateral using perpetual futures contracts
Long or short NFTs
Trade with up to 5x leverage

What are perpetual futures?

Perpetual futures contracts are derivatives, which follow the price of the underlying assets.

More about perpetual futures
- Unlike traditional futures, perpetual futures don’t have an expiry date.
- Because there are no expiry dates, funding payments are needed to prevent the price of perp from deviating too far from the underlying assets. These are payments made between traders depending on whether they hold long or short positions. Funding consists of regular payments between buyers and sellers, according to the current funding rate. When the funding rate is above zero (positive), traders that are long (contract buyers) have to pay the ones that are short (contract sellers). In contrast, a negative funding rate means that short positions pay longs.

Source: nftperp

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