Platform Architecture
Explore a detailed breakdown of the 0xdx launchpad, smart contracts and their associated wallet interactions.
Launchpad
On 0xdx, Option Sellers and Option Buyers can interact with the 0xdx DeSpec ecosystem. Users have the ability to submit both market and limit orders that show up in the form of bid and asks in our DeSpec orderbook.
NFT Options
Option contracts are traded using the 0xdx smart contract on the Arbitrum network, which has been specifically chosen due to its minimal transaction fees and better user experience as compared to Ethereum's mainnet.
The metadata associated with the option's paramaters are stored on-chain. This contract is also where any collateral posted by the original option maker is stored until the contract has been settled at the Expiration Date.
Price Oracle and Price Determination
The basis for any 0xdx NFT option contract is the index price of the underlying collection that ensures a robust and high-quality data stream to accurately reflect the on-chain value of the collection.
With these principles in mind, the 0xdx team has constructed a comprehensive pricing algorithm to mitigate attempts at price manipulation or potential discrepant prices based on outlier events. Using trading data directly from the Ethereum blockchain, log data (such as the platform used for transacting) and data that we have regarding the buyer and seller of the NFT collection, we can form conclusions about the legitimacy of transactions and decide whether to include them in our list of processed transactions used to calculate contract valuations. Further, the 0xdx Price Determination Algorithm removes outliers via the R3 Nearest Quantile Definition - a well-established mechanism by which outliers can be discerned. All the filtered transactions are then used to calculate a final value via a Volume Weighted Average Price (VWAP) calculation.
Once the final values are determined, they are sent to the 0xdx Price Oracle, which maintains a list of historic prices for all contracts used by the ecosystem.
The Settlement Price is based on the NFT collection as a whole, not an individual asset or floor price of the collection
User Flow Model
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