> For the complete documentation index, see [llms.txt](https://docs.ovols.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.ovols.com/ovols-app/tech-breakdown.md).

# Tech Breakdown

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TL;DR - Ovols converts NFTs into fungible tokens that represent fractional ownership of a given collection or unique asset. These tokens power limitless opportunities and are composable with Solana DeFi. 
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## How Ovols work

Our tech runs off a Floor Index, which allows users to deposit NFTs from the same collection and receive a constant 1000 fungible tokens that can be used to withdraw another NFT at the same ratio.

* 1000 fractional tokens = 1 NFT (i.e 1 Ovol NFT = 1000 $OVOL)
* Every collection has a pool made up of many fractionalized NFTs (fNFTs)
* All NFTs in a pool are valued at the floor price
* Each pool has a **pool token** associated with it (i. e Ovol NFTs = $OVOL) that respresents fractional ownership of that collection.
* These tokens have an AMM (Orca/Meteoera) that allows tokens to be swapped seamlessly.

These tokens then can be integrated into DeFi products just as normal SPL tokens are. 

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## How our fractional pools power Ovols

**Example:** Selling an NFT

<figure><img src="/files/1DYhtRS6M11omri0mGnH" alt=""><figcaption></figcaption></figure>

* **Fractionalize (NFT -> fNFTs):** the original NFT is locked in a vault and 1,000 fNFT tokens are minted to the user. These tokens represent fractional ownership over the *original NFT*
* **Deposit (fNFTs -> pool tokens):** 1,000 fNFTs are deposited into the collection's pool and 1,000 pool tokens are minted to the user. These tokens represent fractional ownership over the *NFT collection*
* **Swap (pool tokens -> SOL):** 1,000 pool tokens are swapped (using an Orca/Raydium swap) for SOL

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**Example:** Buying an NFT

<figure><img src="/files/fiBAOqdZhuQdycdtUPcc" alt=""><figcaption></figcaption></figure>

* **Swap (SOL -> pool tokens):** SOL is swapped (using an Orca/Raydium swap) for 1,000 pool tokens
* **Withdraw (pool tokens -> fNFTs):** the 1,000 pool tokens are used to withdraw 1,000 fNFT tokens&#x20;
* **Fuse (fNFTs -> pool NFT):** [1,000 fNFTs ](#user-content-fn-1)[^1]are fused back into the original NFT and sent to the user

[^1]: