Pricing Mechanism and Pricing Power

With the introduction of standardized assets like wNFT, NFT liquidity pools can be established to enhance pricing mechanisms through effective bidding, helping Pink Finance gain pricing power. NFT liquidity pools are recommended to be set based on floor prices or market prices. Thus, all NFTs within a collection are treated the same, regardless of rarity. Creating a single unified NFT liquidity pool for each collection can effectively establish sufficient NFT liquidity. Research suggests that using the floor price to create liquidity pools for specific NFT collections is a recommended approach, proven effective in enhancing liquidity.

Additionally, with concentrated liquidity, customized bonding curves, and dynamic fees, Pink Finance achieves higher liquidity utilization and lower transaction costs. Users can adjust pool parameters to optimize performance for specific trading patterns of specific assets. This design minimizes market price slippage with customized bonding curves applicable to different types of NFTs, ensuring liquidity depth and mitigating price manipulation in the NFT market. At the same time, management fees are dynamically adjusted based on price fluctuations to provide a more comprehensive and refined user experience. Increased transaction frequency and volume following the establishment of NFT liquidity pools enable more accurate floor prices for NFTs on Pink Finance, enhancing NFT liquidity and helping Pink Finance gain pricing power.