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