NFT Hedging Protocol: Mitigating Price Volatility Losses in NFT Holdings
- $50k USD equivalent.
- Trademark requested
We pioneers NFT hedging protocol, starting with Moonbirds, offering a sanctuary against market uncertainties. Reduce the loss of holding a NFT from market downturns. Moonbirds/Mythics enjoy prominence in our branding, exclusive perks, and a share in revenues. This initiative is our stepping stone towards introducing a myriad of NFTfi products, aiming for widespread NFT adoption.
About the project
We pioneers NFT hedging protocol, starting with Moonbirds, offering a sanctuary against market uncertainties. Reduce the loss of holding a NFT from market downturns. Moonbirds/Mythics enjoy prominence in our branding, exclusive perks, and a share in revenues. This initiative is our stepping stone towards introducing a myriad of NFTfi products, aiming for widespread NFT adoption.
Mission alignment
- Create experiences or products which directly benefit holders
- Promote the Moonbirds and Mythics brand beyond web3
- Elevate Moonbirds and Mythics within the web3 community
Community backers
What is it?
We are emerging as a trailblazer in unveiling hedging pools for premier NFTs, initiating with Moonbirds. We are crafting a revolutionary mechanism aimed at assuaging the financial uncertainties intrinsic to the capricious NFT markets. By employing sophisticated algorithms for astute strike price determinations, this endeavor stands as a bulwark, strengthening the NFT investment landscape and conferring exclusive privileges to the Moonbirds community.At the core of our innovation is a user-centric DApp, a protocol that mitigates risks, lowers gas fees by leveraging Layer-2 chains, and fosters a secure environment for both acquiring and holding NFTs.
We extends a dual-faceted platform, allowing users to procure a hedge, shielding them against swift price declines, ensuring they are remunerated upon hitting the strike price. Conversely, users have the latitude to sell a hedge, capitalizing on stable or escalating prices, thereby earning profits from offering this hedge. This dynamic interplay forms the bedrock of our ambitious trajectory to conceive an array of NFTfi products, enhancing the adaptability and utility of NFTs in a thriving digital ecosystem. For example, if a user buys an NFT at 5 ETH and employs hedging, their losses could be significantly mitigated to 2 ETH in the event of the asset’s value dropping to 1 ETH, compared to a 4 ETH loss without a hedge. (The numbers used in this example are for illustrative purposes only and do not represent actual proportions.)
We are seizing an opportunity to fill a void in a market of NFTfi, with the NFT realm witnessing a concentration of capital and financial services in elite collections, We are positioned to foster a positive feedback loop, attracting attention, facilitating yield-earning activities, and fostering community growth. We aim to earn revenue for the community, elevating the MoonBirds/Mythics ecosystem, and securing funding in the bracket of $50k to bring this vision to fruition.
How does it benefit the Moonbirds and Mythics holder community?
- Revenues derived from Proof-related NFT hedge pools are channeled to the Proof bank, fostering financial robustness.
- The community, starting with Moonbirds/Mythics, enjoys exclusive benefits such as 100% fee commission and priority in future activities.
- Moonbirds and Mythics will be featured prominently in our website design, enhancing brand visibility.
About the team
We are a diverse team comprising three adept software engineers and a proficient 2D designer. Our collective proficiency in blockchain, DApp development, and design positions us uniquely for the fruition of this groundbreaking project.
Product strategy
- Immediate Launch (Q4, 2023): Initiate the development and introduction of Moonbirds hedging pools.
- Multi-Chain Expansion (Q1~Q2, 2024): Infuse Optimism and Arbitrum, broadening our accessibility and reach.
- Liquidity Aggregation (Q3, 2024): Consolidate liquidity across various chains, cultivating a vibrant trading ecosystem.
In parallel with these developmental strides, we recognize the imperative need to expand our team. A focal area of our recruitment efforts will be directed towards securing proficient marketing personnel. This expansion is crucial as we aim to effectively communicate our value proposition, engage with our community, and establish a strong brand presence in the competitive NFT financial landscape.
What are the risks?
We fully acknowledge the array of risks associated with our project, most prominently, market variances and technological intricacies. The fluctuating nature of the NFT market and the ever-evolving technological landscape pose considerable challenges. However, our strategy is well-rounded, involving meticulous development and strict adherence to regulatory norms, as we aim to build a platform that is both resilient and compliant with the prevailing regulations.
Our confidence in navigating these challenges stems from our solid core of engineering talent. We are composed of seasoned professionals with a wealth of experience in blockchain technology and DApp development. This strong foundation equips us with the necessary skills and knowledge to address and mitigate any technical challenges that may arise during the development process.
In addition to technical risks, we also recognize the potential challenges associated with market adoption and regulatory compliance. Our approach is to maintain open communication with our community and stakeholders and to stay abreast of regulatory developments to ensure that our platform remains compliant and meets the needs of our users. By being proactive and vigilant, we aim to manage and mitigate these risks effectively, ensuring the long-term success and sustainability of the project.
What will the money actually be spent on? Do you expect any other money to come in related to this project, e.g. revenues?
The allocated funds will be judiciously utilized across various domains to ensure balanced growth and sustainability of the project:
- Marketing and Sales (30%): Aimed at expanding our user base and enhancing brand visibility.
- Engineering Development and Operational Costs (30%): For technological advancement and smooth functioning of the platform.
- Visual Design and Related Expenses (20%): To improve user interaction and experience.
- Contingency Fund (20%): Reserved for addressing unforeseen needs or capitalizing on unexpected opportunities.
This structured allocation underscores our commitment to a concise and strategic approach, laying the groundwork for a self-sustaining ecosystem bolstered by service fees.