Tech Breakdown
Last updated
Last updated
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.
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.
Example: Selling an NFT
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
Example: Buying an NFT
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
Fuse (fNFTs -> pool NFT): are fused back into the original NFT and sent to the user
