Drops
  • Drops
    • Introduction
  • Governance
    • DOP - Protocol Governance & Ownership
  • Tokens
    • Overview
    • veDOP
      • Emissions Distribution
    • esDOP
      • esDOP parameters
      • esDOP vesting duration
      • Situational examples
  • Loans
    • Overview
    • NFT Lending Pool
      • Liquidation parameters
      • Liquidations
    • Positions Lending Pool
      • Components
      • Using vault markets
      • APY Calculation
    • Interest rates
    • dTokens
  • Tutorials
    • How to borrow against NFT
    • How to repay NFT loan
    • How to lend and earn yield
    • How to use SweepMax
  • SweepMax - Financing
    • Overview
    • Features
    • How does it work?
  • NFT Price Oracle
    • Overview
    • Verifying Sale
    • Extreme outliers removal
    • Probable outliers removal
    • Floor TWAP
  • Links
    • Audits
    • Smart contracts
    • Risks
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  1. NFT Price Oracle

Overview

In order to make permissionless loans work, an NFT price oracle is required to determine the NFT's value. Initially, the floor price of the collection will be used to set the underlying value for supplied NFTs.

The NFT floor price oracle is built using Chainlink infrastructure, enabling anyone to become a node operator.

Chainlink oracle uses an average of 3 data sources: Drops Spot Floor, NFTBank Floor and NFTX indexes.

Drops Spot Floor price is calculated in 4 steps: 1. Verifying sale 2. Extreme outliers removal 3. Probable outliers removal 4. Floor and 24 hour TWAP

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Last updated 2 years ago

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