Quantix, the NFT virtual Automated Market Maker

NFT Liquidity problem

“Similar to assets within DeFi, non-fungible tokens require similar primitives like lending, liquidity, and asset management, an area that is currently being built on. Additionally, while the fundamental value proposition for NFTs lies within their uniqueness, fungibility is important for increasing liquidity and the financialization of NFTs.

Liquid tokens have thousands of buyers and sellers, but every NFT transaction requires a single buyer and a seller––pointing to lower liquidity. To date, the projects focused on the financialization of NFTs are attempting to, unironically, make non-fungible tokens as fungible (and liquid) as possible.

Similar to physical collectibles such as trading baseball cards, NFTs face the illiquidity issue especially for projects that are not highly valued and coveted. Though the NFT market is on the rise, we typically see that the potential for this asset is untapped.

NFT trading volume has surpassed $13 billion on Ethereum alone and will continue to increase over time as new types of assets are tokenized onto blockchains. The market possesses the greatest liquidity among bluechip NFTs (e.g. Punks), which are inaccessible to the majority of collectors athey’re concentrated and expensive.”

(source The Financialization of NFTs | Messari)

The Quantix Theory

Investment assets are traditionally divided into fungible and non-fungible assets in the financial world. Fungible assets are defined as interchangeable assets that can be enumerated, weighed or measured, such as currencies or raw materials. On the other hand, non-fungible assets are unique and are not interchangeable. Non-fungible assets could range from virtual items like digital artworks and collectibles to physical art and real estate.

Fungible assets have over the years seen the emergence of increasingly advanced exchange mechanisms (such as markets, banks, stock exchanges and with the advent of blockchain automated market makers). On the other hand, the exchange of non-fungible assets has always been based primarily on two mechanisms The first is the exchange between seller and buyer (direct or intermediated), the second is an auction, in which given an initial starting price, the sale value is determined by how many buyers are willing to spend for a particular asset, until the final sale.

The mechanism at the base facilitates the quantization of the asset in equal parts that can be bought and sold by several owners. The significance of this process is that it helps to dynamically the trend of the value until the moment in which a buyer interested in acquiring the entire asset arrives and purchases all the previous fractions from their owners at the market price. Blockchain technologies and in particular Bonding Curve Re Fungible Token (RFT) applied on an NFT marketplace represent the most logical choice for the practical realization of the Quantix Theory.

RFT is a specific type of ERC20 token that allows one to know who are the fractional owners of a certain NFT. (Learn more).

A bonding curve is a mathematical concept that can be built into platforms and applications to calculate a token’s value as determined by its supply. The core concept of bonding curve is quite simple: The price of a token is determined by its supply. The more tokens that have been distributed, the higher the price. Bonding curve tokens are particularly efficient for low capital assets compared to order books so can fit perfectly to premium NFT.

Quantix’s core smart contract is a Bonding Curve RFT optimized for unique and rare NFT, allowing fractional ownership, transparent price discovery, and instant liquid trades of fractions, without the seller having to add any liquidity.

The project: Jump right in

Go into the project details to discover the Quantix platform and learn the fundamentals as quickly as possible:

Quantix Platform: what is it and how does it workQuantization Phase (QP)Free Market: Quantix AMMFinal stage: Asset salePlatform Fee Distribution

Architecture: Dive a little deeper

Learn the fundamentals of Quantix Platform to get a deeper understanding of its main features:

Smartcontracts OverviewQUANTIX Token (QNTX)Q-ENERGY smartcontractQ-PHOTON Token smartcontractQ-ATOM smartcontractQ-MOMENTUM smartcontractQ-COVALENT smartcontractQ-BRIDGE smartcontractQ-JUMP smartcontract