GumBall: Revolutionizing NFT Liquidity and Trading
Introduction
GumBall is a cutting-edge launchpad and liquidity layer designed for creating and trading liquid NFTs. These NFTs, referred to as gNFTs, are backed by instant liquidity via a bonding curve, eliminating the need for third-party marketplaces or order books. This innovative approach allows digital assets issued via GumBall to act as their own marketplace.
Key Features
- Instant Liquidity: gNFTs on GumBall can be bought and sold instantly, thanks to guaranteed liquidity in their bonding curve. This provides a seamless trading experience without the need for external platforms.
- Collection Keys (GBT): When a gNFT collection is launched on GumBall, a corresponding amount of ERC20 tokens, known as Collection Keys or GBTs, are created. These tokens represent a fungible version of the NFTs and facilitate deeper composability within DeFi.
- Staking and Borrowing: Users can stake gNFTs to earn swap fees or use them as collateral for loans. This system allows for interest-free loans with no risk of liquidation, as the market price of a gNFT can never fall below its initial mint price.
- Fee Structure: Swap fees are set by creators and accumulate in the collection’s Fee Treasury. The fees are split between the collection creator, stakers, and the GumBall Treasury, ensuring fair distribution of rewards.
Protocol Flow
The GumBall protocol is composed of four main contracts:
- GumBall Factory: This contract handles the deployment of gNFT collections, allowing creators to customize various parameters.
- ERC20 Bonding Curve: This contract represents the GBT token of a collection and ensures guaranteed liquidity through a bonding curve mechanism.
- GumBar: The staking contract where users can stake their gNFTs or GBTs to earn rewards from swap fees.
- GumBall Machine: This contract facilitates the conversion between GBTs and gNFTs, ensuring that users can always trade their assets at the current market rate.
Mission and Vision
The GumBall team aims to provide creators and users with more autonomy over their digital assets, freeing them from the constraints of third-party marketplaces. For creators, GumBall offers easy-to-use tools for launching liquid gNFT collections with built-in staking and borrowing capabilities. For users, GumBall provides a straightforward platform for trading gNFTs with guaranteed liquidity and the potential to earn real yield through staking.
Conclusion
GumBall is revolutionizing the NFT landscape by introducing a system where NFTs are backed by instant liquidity and can act as their own marketplaces. With its innovative bonding curve mechanism and comprehensive protocol architecture, GumBall offers a new level of flexibility and utility for both creators and users in the DeFi space.
