What is Openland? Openland is a derivatives platform for NFTs built on Ethereum that allows users to trade NFTs at an agreed-upon price at a future date. Let’s find out what is special about this project with Weakhand in this article.
What is Openland?
Overview of Openland
Openland is a derivatives marketplace for NFTs built on Ethereum. Users can trade their NFTs at an agreed-upon price at a future date.
Openland’s goal is to build a decentralized derivatives market for assets Metaverse to help users hedge risks, creating opportunities for traders to make money with good profits.
Openland develops 3 products on the platform, which are:
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Options Marketplace: Creates a marketplace that allows users to create, buy and sell their options contracts.
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Forward Marketplace: A futures market where users can place forward contracts on an asset at a specified future price.
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LaunchPad: Is a platform for releasing new NFT collectibles. Users need to own an Openland Pass to participate.
However, at present, Openland has only deployed the Forward Marketplace product. So what’s special about Forward Marketplace? Let’s find out right away.
What is the Openland difference?
Forward Marketplace is a futures market for NFTs. Buyers and sellers execute forward contracts with assets at a specified price on a specific date in the future.
I will give an example so that everyone can better understand the operating mechanism of the futures market on Openland.
Alice purchased 1 NFT for 3 ETH. Currently, the price of this NFT is 10 ETH. Today is March 24, 2023, Alice wants to sell NFT to Bod on the futures market in Openland. The forward contract is launched and Bod will buy Alice’s NFT on April 24, 2023 at a price of 10 ETH. Both parties will stake 5 ETH as a deposit on Openland.
On April 24, 2023, let’s say the price of this NFT increases to 20 ETH. There are 2 cases as follows:
Case 1: Alice sold the NFT to Bod for 10 ETH. At this time:
- Alice’s profit: 10 – 3 = 7 ETH
- Bod’s profit: 20(Market price)-10(Order price) = 10 ETH
Case 2: Alice can choose to leave her 5 ETH deposit to Bod and sell this NFT on Opensea. At this time:
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Alice’s profit: 20 – 3 – 5 = 12 ETH
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Bod’s profit: Alice’s deposit = 5 ETH.
On April 24, 2023, let’s say the price of this NFT drops to 5 ETH. There are also 2 cases as follows:
Case 1: Alice sold the NFT to Bod for 10 ETH. At this time:
- Alice’s profit: 10 – 3 = 7 ETH
- Bod’s profit: 5(Market price) – 10(Order price) = -5 ETH
Case 2: Bod can choose to leave his 5 ETH deposit to Alice. At this time:
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Alice’s profit: 5(NFT Value) + 5(Bob’s Deposit) – 3(Mint cost) =7 ETH
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Bod’s profit: -5 ETH(Deposit transfer to Alice)
Through the example above, everyone can see that Alice has transferred part of the risk of holding NFTs to Bod. When the NFT price increases, Bob can benefit from the increased price value without holding the NFT, and when the price of the NFT drops, the maximum bob will lose is his deposit. This creates a new and quite interesting market in my opinion.
Core Team
Update…
Investor
Update…
Tokenomics
Update…
Information Channel of Openland Project
- Website: https://openland.wtf/
- Twitter: https://twitter.com/Openlandwtf
- Discord:
summary
Openland develops a novel and unique futures market where users can minimize the risk of holding NFTs. Hopefully the information I have provided in this article has helped everyone to have some idea of Openland.