Fungily Trade Relationship
Relationship Between AMM Trading & Traditional Listings on Fungily
Fungily merges two powerful trading mechanisms:
Automated Market Maker (AMM) Trading
Traditional NFT Marketplace Listings ( with one critical innovation: the AMM floor price becomes the minimum listable price on the marketplace ).
This synergy creates a feedback loop that benefits both systems.
How Fungily's AMM Helps Traditional NFT Trading
Establishes a Reliable Floor Price The AMM continuously adjusts price based on buying activity, setting a real-time, demand-driven floor. This gives traditional traders a price reference that can’t be undercut, creating a stable foundation for listings.
Enables Instant Exit Liquidity Sellers on the marketplace know that if their NFT doesn’t sell, they can always go back and sell directly into the pool, giving them confidence to list higher.
Reduces Market Manipulation Without the ability to list below the AMM price, floor sweeps and paper hands are reduced. This protects the collection’s perceived value on traditional platforms.
How Traditional Listings Help the AMM Model
Provides Upward Price Signals When NFTs are listed and sold well above the AMM floor, it signals strong market demand, encouraging more people to buy from the AMM, which in turn pushes the AMM price higher.
Encourages Speculative Bidding & Rarity Premiums Collectors looking for rare traits or betting on price appreciation will prefer custom listings. This helps creators capture premium value outside the flat AMM curve.
Drives Traffic Back to the Pool When the lowest listing price rises well above the AMM floor, new buyers often opt for the AMM to get cheaper NFTs, creating natural buy pressure and raising the floor price further.
Fungily Creates a Two-Way Engine:
AMM supports marketplace confidence and price floors.
Marketplace demand accelerates AMM growth and price movement.
Integrating the liquidity and pricing logic of DeFi (AMM) with the emotional, speculative, and social behavior of traditional NFT trading, Fungily creates a smarter, fairer, and more liquid ecosystem where both methods boost each other’s value.
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