PawnHouse Frequently Asked Questions

What is PawnHouse ?

PawnHouse applies a new type of auction(SMRA) structure to the NFT market and provides a collateralized loan marketplace based on NFT at the same time.

Both collateralized loan market and auction provide pricing information to the market, so that PawnHouse positioning themself as the price oracle for NFT. Through a decentralized network, PawnHouse allows blockchains to securely interact with external data feeds, events, and payment methods, using information symmetry to strengthen common and private values needed by smart contracts to become the dominant form of digital agreement.

How can I stay up-to-date with official PawnHouse news?

PawnHouse has a variety of active channels where you can find more information about the latest PawnHouse announcements, discover helpful resources, and connect with other members of our rapidly growing community. Below is a list of official Chainlink channels. As a security best practice, always double-check the URL that you are visiting to ensure you are accessing official Chainlink properties.

PawnHouse will never ask for your passwords, seed phrases, private keys, or other confidential information.

Why do NFT need price discovery?

The largest difference between NonFungible Tokens and Fungible Tokens is the quantity.In a perfect complete competitive market, FTs price discovery comes from the order books system or AMM, and other markets are the receivers of this price.

NFT market is in lack of efficient price discovery mechanism. Auction is one of the most common methods for NFT pricing and transactions, but there are too many factors that are influencing the final deal price in the auction, such as hype behavior of a single product or the difference in private values expectations, and the limited scope of information disclosure.

Only buyers with proper price reference over NFT assets will have stronger confidence in purchasing NFT or lending money to a NFT collateral.

What is “Common-Values and Private-Values”?

The final transaction price of the auction displays the private-value of a non-standard asset to an individual.However, quotation of its common values is better suited for the true price range of this category of NFT assets.

Common-value auctions are auctions where the value of the item is the same for all bidders. What makes such auctions interesting is that bidders do not know the value prior to bidding, but instead receive affiliated private information signals that are related to the underlying value.In most auctions, bidders consider both private and common values

What is “Price Corridor”?

The active bidding model for a single asset is shown in each scatter point represents a quote, namely, a valid price expectation.The area where quotations gather is known as the “price corridor”.Due to the existence of private values, the final transaction price of the asset may not be in the price corridor, but at the highest price of this transaction.But for market or asset holders, the price corridor is extremely referential for subsequent pricing and the market.In particular, the common values range of assets constructs the price discovery mechanism of NFT assets.

Example: a cryptopunk is finally sold at 250k usd, but this price is hardly taken as the public value of this type of punk. The price corridor is actually concentrated around 180k usd. When a buyer saw this punk is placed in the collateralized loan market, he or she could just refer to the price corridor of 180k, and decide to lend a loan to the borrower based on 180k rather than 250k, this will highly reduce the lender’s risk of default, because even if it falls into default(borrower doesnt pay back the money), the lender can easily resell it in the market and acquire liquidity back.

What makes the PawnHouse more reliable than other NFT price oracle platform?

The biggest difference between the model we designed and the ordinary NFT trading platform is that we do not take the final transaction price as the core or only value for NFT.

We aim to capture all the useful and valuable data and information from the auctions happening on our platform (or in the future maybe draw data from other platform too) during the whole auction process, especially our Simultaneous MultiRound Auction (SMRA), and use more open and timely information to encourage and strengthen bidding behavior, and build a “Price Corridor” for NFT assets through a real and dense quotation range.All the information captured in the bidding will generate the common value of certain type of NFT, and the common value discovering mechanism is the oracle of NFTs.

What is the “DAILY REWARD RATIO” in PawnHouse’s Weekly Report?

PawnHouse uses tokens as economic incentives and governance, where 60% of the tokens are generated by mining. “DAILY REWARD RATIO” is the coefficient of rewards distributed from liquidity mining. After the V2.0 version is launched, the platform will simultaneously start liquidity-mining and staking-mining.

At present, the total daily mining reward token supply is 657,534 PH. If the “DAILY REWARD RATIO= 0.11”, that means that you can get 0.11 PH by lending tokens equivalent to 1 USDT on this day.

The reward coefficient will be adjusted automatically according to the number of users participating in mining and the total amount of loans. If more users provide liquidity on a certain day, and the reward tokens are mined ahead of time, the amount of rewards on the next day will be reduced.

If there are fewer users who provide liquidity, the remaining tokens of the day will be accumulated and transferred to the next day, and the promotion value of the reward coefficient will then be automatically adjusted by factoring the remaining number of the tokens from the previous day.

After the user connects to the wallet, he can see the reward coefficient of the day on the homepage.

_________________________________________________________________

The PawnHouse project team combined and applied both the SMRA theory (2020 Nobel Economic Prize) and The Wisdom of Crowds theory to effectively solve the issue of decentralized NFT asset-pricing and improve the liquidity of NFTs.

Due to its unique characteristics, the historical transaction price of NFT is determined by private value. This results in less effective price information and is easier to control. By introducing price proposers to the market, PawnHouse satisfies both common and private values, and provides a comprehensive and rich price collection strategy. While building a price corridor for NFT assets, PawnHouse also supports NFT’s collateralization and auction transactions.

PawnHouse, The World‘s First NFT Oracle

LIQUIDITY | EQUALITY | ACCURACY

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
PawnHouse

PawnHouse

Provide Better Liquidity and Price Discovery Mechanism for Nonstandard Assets