Motivation

Increased Price Exposure

For most NFTs, it is up to 1 seller to take their best guess at 1 price. We want to allow more users to gain price exposure through NFT chips. This will decrease the barrier to entry for trading NFTs to predict NFT prices, as well as provide input to price the NFT. Additionally, due to their atomicity, it's easy for whole NFTs to become illiquid. Chips enable one to operate in more customizable amounts and hedge the risks.

Price Discovery for Any NFT

Price discovery for NFTs is an incredibly hard problem. There’s no clear way to price NFTs beyond floor NFTs. For "rarer" NFTs in a popular collection, “1/1” NFTs, or NFTs from a less popular collection, pricing is even more arbitrary. Within large collections, sellers and buyers can generally agree upon a price: the floor price, the cheapest price any owner is willing to sell at. This is because it serves as a reference point: in liquid collections, one can be fairly assured an NFT priced at or near the floor will sell. However, for almost every other NFT, there are no such reference points. Without a way to determine fair prices, the market is extremely inefficient: there is no price discovery. We want to provide price discovery for any NFT to sell.