Research Summary

The report discusses the potential and challenges of Non-Fungible Token (NFT) derivatives, with a focus on perpetual futures. It highlights that while NFTs have seen significant growth, they are largely long-only assets, presenting challenges in profit-making if floor prices are not rising. The report also discusses the high entry barriers for retail investors and the issues of fees. The report introduces NFT Perpetuals as a solution, which are built on a modified virtual Automated Market Maker (vAMM) model. The report also discusses the role of NFT price oracles in providing real-time price quotes for NFTs.

Actionable Insights

  • Explore NFT Perpetuals: These offer a new way to trade NFTs, providing traders with better experiences in terms of friction, sizing, and leverage.
  • Consider the role of NFT price oracles: These provide real-time price quotes for NFTs and are crucial for NFT financial primitives such as NFT perpetuals trading.
  • Understand the limitations of NFTs: High entry barriers for retail investors and issues with fees are some of the challenges that need to be addressed.
  • Recognize the potential of NFT derivatives: The success of NFT derivatives will rely heavily on professional NFT traders entering the market.

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