project screenshot
project screenshot

Foofa NFT Dapp

Solving NFT liquidity problem by providing NFT owner with ERC1155 tokens in return of the NFT which can be sold anywhere freely with some other cool features

Foofa NFT Dapp

Created At

Road to Web3

Winner of

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๐ŸŠ Polygon Pool Prize

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๐ŸŠ Covalent Pool Prize

Project Description

FOOFA- NFT Liquidity Protocol

This protocol is aimed to solve the big problem of the NFT industry i.e liquidity in NFTs. Like there is uniswap for ERC20 tokens, there is need for liquidity for ERC721 and 1155.

What do I mean by liquidity?

Suppose you own a Lazy Lion NFT, and you need funds urgently in 1 day or even less. You list the NFT on opensea, but you will need a good amount of luck to sell it at a reasonable price in some hours. Then you go to the NFTs discord group and request members to please buy your NFT as you need to pay your bills.

Solution Creating an on chain protocol that facilitates creating instant liquidity for the owner in return of some discount in the price.

The owner sends the NFT to our ERC1155 Smart contract with parameters:

Price : Listing price of the NFT Fee: Max amount that the owner is willing to give up for instant liquidity. No of Tokens= The owner will receive the specified no of tokens in return of the NFT. Our contract will mint it when this function is called.

Now, the owner can sell these newly minted ERC1155 tokens using our smart contract.

The buyers will buy the tokens at a discount against the listed price. It will be based on their personal opinion as to how much they expect the NFT to be in the market. Discounted Price per token = (Price listed - Discount)/ Total No of tokens minted in return of NFT

THis model incentivized the Owner as well as liquidity providers to participate actively.

Looking forward to your views and hoping for the best.

Thanks and Regards Harshit Singhal

How it's Made

This Dapp uses the openzeppelin ERC1155 contract for making a on chain NFT Fractionalizer. The user's ERC1155 NFts are automatically queried using Covalent API . We get real time NFT metadata using the covalent API. The smart contract is built from scratch completely which has features like burning tokens , Fees for Liquidity providers. I have kept the UI quite simple for users to interact easily. Tech used: Reactjs, solidity, etherjs, hardhat , scaffold Eth.

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