An NFT oracle will be born
The NFT industry continues to experience explosive growth. However, there is an urgent need for its own blockchain oracle to provide pricing data for NFT assets.
How should we price NFT assets? In the real world, pawn shops and auction houses already solved the pricing problem of various non-homogeneous asset collections. But in the blockchain world, pricing solutions are evolving to be more radical and colorful than ever.
While NFTs are a great innovation in the Crypto asset space, they also have the following issues:
● Pricing Difficulty: NFTs are more difficult to price than Fungible Token (FT) assets due to their unique and individual characteristics.
● Circulation Difficulty: Because NFT assets are personal and unique, it can be challenging to establish a uniform value consensus similar to FT assets.
● Elasticity of NFT Over-Minting: Large numbers of NFT assets that emerge over a short period of time can disrupt pricing and cause a wide gap of values.
PawnHouse 1.0 aims to resolve these issues by adopting a P2P mortgage lending model and providing the platform and tools for many NFT owners to borrow funds. At the same time, users who participate in lending are incentivized with PAWNHOUSE token rewards, creating a mutually beneficial ecosystem.
The most exciting feature of PawnHouse 2.0 is the adoption of the Simultaneous Multiple Round Auction (SMRA), an auction mechanism designed in 1994 by Paul Milgrom that won the Nobel Prize in Economics. Conducting SMRAs and gathering the data through the PawnHouse platform will form the standard for future NFT asset pricing. With this method of NFT pricing oracle about to deploy, a revolution in the industry is about to occur.
What are SMRAs?
Simultaneous Multiple Round Auction (SMRA) allows users to bid and win on multiple assets at the same time. In each auction, multiple assets of the same or related categories will be auctioned at the same time. The auction is carried out in rounds and all bidders can bid before the countdown.
After reaching the standard for starting auctions, the system will automatically lead the countdown to the first round of auctions. When the countdown is over, the system only displays the current highest bid for each asset (other bids below this price are not displayed), and starts the next round of bid countdown. When none of the assets gets a higher offer, the auction ends. The highest bidder for each asset wins. Additionally, service subscribers can then check out all packages of data of the auctions in the finished rounds.
The SMRA will greatly improve the efficiency of the use of funds in the auction process. Furthermore, PawnHouse also provides optimal market-based quotations for various NFT assets through a Price Corridor.
As more users participate in the SMRA quotation system, PawnHouse will be able to gather more data to increase the accuracy of the price corridor. Our aim is to avoid the shortcomings of traditional English and Dutch auctions, break the Winner’s Curse, and satisfy both buyers & sellers.
PawnHouse will effectively solve the NFT pricing problem by being wildfires on a grassland. The project will quickly screen out vital NFT assets and clear out the land. NFTs that have been burned by the wildfires will provide data nourishment for the truly valuable NFT assets, that will in turn create a healthier grassland ecology once the rainy season begins.