What happens on PawnHouse?

AMA July 30

In the first AMA of PawnHouse on July 30, Meruto, as the leader of the project, introduced the project situation and plan to the community members. Now we will summarize some of the things that have been said during the AMA.

We are a decentralized but passionate team of people based in several locations around the world, working on a protocol to try to solve the problem of NFT price discovery. PawnHouse provides users with collateralized loans based on NFTs, or other non-standard assets.

We are also working on building a brand new auction system called SMRA. Simultaneous multi round auction, aka. SMRA, is a new innovative auction type based on the theory of 2020 nobel prize winners Paul R. Milgrom and Robert B. Wilson. It is different from organizing traditional english and dutch auctions. With multiple rounds of quotation information generated by bidders, namely the buyer’s price expectation or price evaluation over one type of NFT, PawnHouse is able to collect price data from different categories or a single piece of NFT asset. Those data form a price corridor for NFTs, which could be utilized as the price reference (common value) for NFT buyers and NFT-related business conductors.

With the pricing mechanism being established, the collateralized loan market will welcome more liquidity as estimated. Buyers with proper price references over NFT assets will have stronger confidence in purchasing NFT or lending money to a NFT collateral.This is also how our two major functions, NFT collateralized loans and SMRAs can positively influence each other.

Q: What are your main aims behind this Project?

A: The NFT market lacks good liquidity, and the reason behind that is because we don’t have a proper price discovery mechanism. Therefore, we find it interesting and important to build a new mechanism to deal with this problem. That’s why we are building SMRA.

Q: Where are the tokens traded?

A: They are still in the mining stage, and will be opened for trading in the next month. You will see PH tokens first on swap.

Q: How can I buy your token?Whats the procedure for that?

A: The tokens are not any DEX or CEX yet, but you can go to the website, www.pawnhouse.io, and try out the collateralized loan function, where you will be rewarded with some tokens. The reward is designed to attract more liquidity and assets holders to the platform in the early stage.

Q: Do holders have right to participate in the governance of the project? On What kind of decisions can they vote on about the project?

A: I like people who care about their rights when participating in crypto projects. I ask this all the time to the projects I once participated in. Well, for our project, soon after the SMRA gets online and operates stably for a while, we will introduce DAO, where people can vote to decide on issues. For example, how fast should the mining rate be, who should PH partner with, what should be the max or min interest rate over the collateralized loan, etc.

Q: Many new projects are risky and subject to smart contracts bugs and vulnerability . Can you assure us What steps has been taken for safety of your platform and have you done any Audit?

A: Our technical team is constantly improving the contract, introducing third-party audits at different stages, and constantly publishing the code audit results of smart contracts to the community.

Q: What are the steps to become a part of your community, and start getting revenues?Where do we buy, where do we sign up? This looks like an amazing project!

A: Try out the test version of our collateralized loan function, there you can get some tokens if you are a user.

Q: My question about your competitors. Since NFTs are a hot topic right now, we’re seeing a lot of NFT marketplaces.E.g.; Refinable, Binance’s own NFT marketplace, etc — How do you plan to solidify yourselves as the go-to marketplace?

A: Good question, we are not actually a marketplace. We are more like an infrastructure. We introduce the SMRA mechanism into crypto auctions, aiming to build the price discovery system. We could be supportive and cooperative to the existing marketplaces.

So basically, we provide people with SMRA, a new type of auction that is going to serve as nft price oracles. Other marketplace platforms also can cite our price reference for their assets too.

Q: How is the development of project going? Can you describe the current development efforts in detail? Market expansion plan — expect app! And when will they be on the market?

A: We have the test version of the collateralized loan feature already launched on the website. Now we are in the phase of raising the second round of the private sale, (if you are a VC or investing group, feel free to reach out). Also, the SMRA features are currently under development.

Q: Who are the pawnhouse ecosystem stakeholders and what mechanism has pawnhouse put in place to help ensure that all these stakeholders participating in the protocol jointly maintain the normal operation of the protocol?

A: Good question actually. We value the community the most, and this is also why, before any of the investors, community members who contributed to the early stage development can already get PH tokens on the test product now. The collateralized loan function is already online. Use the product and then you can get tokens. We are also currently in the second private sale phase talking to more potential investors.

Q: What is “Common-Values and Private-Values”mentioned in the white paper？

A: In the SMRA, there will be a price range formed. Let me explain this in an example. So a Cryptopunk is finally sold at 250 ETH, but the final price is hardly seen as the public value of this type of punk. The 250 ETH is the private value for the individual who bought the NFT at the latest sale, but the price corridor formed by most of the other bidders during the auction is the common value of this NFT. Let‘s say the price corridor is actually concentrated around 180 ETH. When a buyer sees this punk placed in the collateralized loan market, he or she could just refer to the price corridor of 180 ETH, and decide to lend a loan to the borrower based on 180 ETH rather than 250 ETH, because this is the price that most bidders in the auction will accept. This will highly reduce the lender’s risk of default, because even if it falls into default (borrower doesn’t pay back the money), the lender can easily resell it in the market and acquire liquidity back.

Q: A bright future for NFT’s. Can you share to us, What is your thoughts on NFTs over the next few years?

A: First of all, let’s make it clear on one thing, NFT does not equal crypto art. Also there is no need to have everyone understand or like NFT or crypto-related art works. NFT is only the form or media that digital art could rely on. Digital art, programmable art, generative art have already been around for decades, since the 1960–70’s. NFT enables digital art to be tradable and transferrable. Artists’ intellectual property rights are protected and ensured by NFT. This is the huge meaning of NFT to digital art. Besides digital art, there are also financial tickets, game-related virtual assets, virtual real estate property rights or any of the non-standard assets that could be minted as NFT. Therefore, we don’t want people to limit their imagination about the NFT market to merely a digital artworks market.

Second, we think there will be an organic growth of NFT collecting. Therefore it is in vain to make any extra efforts on trying to get the public to understand or accept NFTs. We believe human activities are gradually moving towards the virtual metaverse from the real world. Thus, the digital assets will play an unspeakably important role in the metaverse(s). This is where platforms like Pawnhouse who serve the NFT market and holders will be vital in the future.

That’s it

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