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1.Abstract

<aside> 💡 NFTs have huge problem on the liquidity.

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Nft is presently being used more and more frequently. Along with the proliferation of nft projects, prominent businesses and celebrities are also launching nft.

Although more people are holding NFTs, the development of NFTs has been significantly constrained by the poorly addressed liquidity issue. Due to the distinctiveness of NFT assets, even NFTs from the same series differ greatly from one another and their ability to trade is subject to subjective judgment. As a result, there is no standard price for NFTs, making their valuation challenging, which contributes to their liquidity issue.

For the growth of the entire ecosystem, the NFT valuation problem must be solved, and Narawat works as a NFT price oracle that values all NFTs.

<aside> 💡 Nawarat is a real-time DECENTRALIZED APPRAISAL TOOLS for NFTs

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The answer proposed by Narawat is a valuation of all nft based on experts, which is ensured to be accurate by an economic system of rewards and penalties for experts (Slash). The valuation process is ongoing, allowing the user to access the appraised nft in real time.

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2.Background and amis

According to Nonfungible.com, an NFT data business, the market for NFT is expanding very quickly: $17 billion in NFT transactions in 2021 compared to only $82 million in 2020, a growth of over 210 times. In 2021, there are currently over 2.5 million cryptocurrency wallets that belong to NFT users (those who hold or trade NFT), up from just 89,000 in the previous year. There were only 89,000 a year ago. The market capitalization of the NFT market has expanded from 75,000 to 2.3 million buyers and is currently over $17 billion, or 1% of the whole cryptocurrency market.

The liquidity of NFTs has become a very significant issue with the growth of NFTs. With frequently lengthy and rigid liquidity cycles, NFT holders use very little of their assets. Additionally, holders do not have enough hedging tools (e.g. BTC, which we can hedge against if we fear a fall). If NFT's liquidity issue is resolved, it will be able to fully utilize its financial capabilities and increase its ephemeral value, realizing the union of NFT and DeFi and providing holders with a wealth of additional advantages.

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The price of NFT, which is unique (not homogenous) and hence challenging to price with the same strong continuity as homogeneous tokens, lies at the root of the liquidity issue. Additionally, because each NFT is unique, it is challenging to implement large-scale automated pricing. The current approach of employing floor pricing has poor accuracy and does not accurately reflect the true worth of NFTs, particularly as the rarity of NFTs is not taken into account at all. In addition, NFT prices are very subjective.