Waterfall: NFT Trading Protocol

Waterfall is an NFT trading protocol that has acquired accurate and fair NFT pricing as its mission, having raised an investment of $4 million under the leadership of Electric Capital and Pantera Capital in the seed round.

Waterfall aims to make NFTs more malleable and productive by developing a new NFT infrastructure for NFTs. They say that they have developed a mechanism that predicts NFT prices for users and performs price discovery. Let’s examine these together.


Waterfall Mechanism and Chips

The Waterfall mechanism aims to conduct price discovery and price analysis inquiry for NFTs listed in the Waterfall protocol. For this purpose, first of all, we need to understand what a Chip token is. The Chip token is the ERC-1155 utility token with which you can predict the price of the NFT you want to list on the platform or buy the NFT. The chip tokens that we use for the mechanism developed by Waterfall have an important value in terms of platform and mechanism.

When you want to list NFTs on the platform, these NFTs are priced according to two different values. First of all, in the Waterfall mechanism, the NFT that wants to be listed first turns into the Chip tokens that we mentioned earlier. In other words, we can now say that the value of NFT is determined by the Chip tokens estimated by users. The second value of pricing is the expiration date. So we don’t want any listed NFT to go into an endless loop. Users are required to enter price estimates for the NFTs they want to list and a period in which this estimate is valid. The Chip predictions made for the listed NFT are reflected in the price instantly and thus the price is constantly up-to-date.

If you pay all of the listed Chip value, you can have the NFT. To ensure fair pricing for NFT listing transactions, the platform charges a fee based on the forecast price and expiration date parameters. To give an example, the higher the NFT prediction price to be listed, the more fee it charges. The same applies within the expiration date. The longer the NFT forecast period to be listed, the higher the fee is determined at the same value.

About Waterfall

Stating that the concept of NFT price prediction is quite difficult, Waterfall is an NFT prediction and trading protocol that uses the mechanisms they have developed to solve this problem. Waterfall basically wants to make it easier to predict NFT prices and make NFTs more formable. Waterfall is a project that is not yet on the market, but is developing.



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