💽 Core

This document introduces the core concepts and mechanisms of the ArtFlip platform.

Bonding Curve Algorithm

The Bonding Curve is the core pricing mechanism of the ArtFlip platform, which associates NFT supply with price through mathematical functions.

How It Works

1. Initial Price: A baseline price is set when the NFT project is created
2. Price Growth: As the number of minted NFTs increases, the price gradually rises according to the curve function
3. Price Cap: After reaching the preset maximum price, the price stops rising
4. Instant Pricing: Each time a buy or sell occurs, the price is calculated in real-time by the algorithm

Advantages

• Automatic Pricing: No need for manual listing, prices are automatically determined
• Liquidity Guarantee: Always has a tradable price
• Price Discovery: Market supply and demand automatically reflected in prices

Trading Pool Mechanism

How It Works

• All sold NFTs automatically enter the trading pool
• NFTs in the trading pool can be directly purchased by other users
• No need to wait for order matching, enabling instant trading

Advantages

• Instant Liquidity: Can buy or sell at any time
• Simplified Process: No complex orderbook system required
• Reduced Friction: Minimizes transaction waiting time

Royalty Mechanism

Design Principles

• Continuous Incentives: Creators receive royalties from each transaction
• Fair Distribution: Royalty percentage is set when the project is created
• Automatic Execution: Automatically distributed through smart contracts

Royalty Distribution

• Royalties are automatically calculated for each NFT transaction
• Royalties are directly distributed to project creators
• Supports multiple recipient addresses

No Reserved Rights Mechanism

Core Principles

• Equal Participation: Project creators and regular users participate in purchases on equal terms
• Fair Issuance: No reserved or priority purchase rights
• Market-driven: Prices are completely determined by the market

Advantages

• Enhanced Trust: Eliminates the possibility of price manipulation by project creators
• Fair Competition: Equal opportunities for all participants
• Market Transparency: Completely transparent price formation process

Cross-chain Mechanism

ZetaChain Integration

• Supports NFT transfers between different chains
• Unified cross-chain interface
• Secure message passing mechanism

Superchain-ERC721 Standard

• Unified NFT standard
• Cross-chain compatibility
• Future SuperChain ecosystem support

Smart Contract Architecture

Modular Design

• Factory: Project creation and management
• Flip: Core trading logic
• Registry: Project registration and queries
• Trade: Transaction execution
• FeeVault: Fee management

Upgradeability

• Uses proxy pattern to support contract upgrades
• Maintains state unchanged
• Backward compatible

Gas Optimization

Optimization Strategies

• Batch operation support
• State variable optimization
• Event optimization
• Storage optimization

Cost Control

• Minimize on-chain operations
• Efficient algorithm implementation
• Reasonable storage layout

Security

Security Measures

• Code audits
• Use of verified libraries
• Access control mechanisms
• Timelock protection

Risk Management

• Price limiting mechanisms
• Trading volume limits
• Emergency pause functionality