What Is Nftperp?
Nftperp is a decentralized exchange (DEX) for perpetual futures on NFTs. It lets you go long or short on the floor prices of popular NFT collections with up to 10x leverage. The platform claims to be a "fast, low fee, secure, and fully decentralized exchange protocol.”
At the time of this writing, it's in Private Beta and supports Bored Apes, Crypto Punks, Azuki, Mutant Apes, and more. It’s a new solution for investors who want to hedge their NFT positions, get exposure to blue chip NFTs on a low budget, or try to predict the prices of NFTs.
Why Does It Exist?
According to their documentation, Nftperp was created to address three issues faced by NFT investors:
1. Long & Short NFTs
Go long or short on BAYC, MAYC, Azuki, Punks, and Milady with up to 10x leverage. At the time of this writing, there are only 5 NFT collections but more are on the way. With perpetual futures, you don't need real NFTs as collateral. Nftperp lets you make trades and post collateral with WETH.
2. Trading Dashboard
This is the Pro trading dashboard but you can also toggle the Lite version for a simpler interface. Your wallet address needs to be whitelisted in order to make trades in the private beta.
Nftperp is a DEX built on Arbitrum, making it accessible to a global audience. To make trades, all you need is a Web3 wallet like Metamask and some ETH. Some of the cheapest places to buy ETH are on Binance and KuCoin (referral links).
Users can track their performance and improve their trading strategies using leaderboards, analytics, and paper trading on the platform. Statistics like total volume, open interest, and top ROI by wallet address can be viewed at https://beta.nftperp.xyz/stats and https://beta.nftperp.xyz/leaderboard. You can use this to spy on active wallets, find strategies, and see what active traders are up to.
5. Fractional Ownership
Nftperp provides fractional exposure to blue chip NFTs, making them accessible to a wider range of investors who may not have the funds to purchase the whole NFT. KuCoin is another platform that has launched fractional NFTs, helping make expensive collections more accessible.
6. Paper Trading
Hedging Your NFT Positions
To further explain how Nftperp can be useful, lets look at an example. By opening a short position, traders can potentially profit from a decrease in the value of the NFTs they hold, offsetting any potential losses they may incur. This feature of Nftperp provides traders with an additional tool to manage the risks associated with investing in NFTs.
For example, Sarah owns a Crypto Punk with a floor price of 50 ETH. She is worried about the market downturn and wants to protect her investment without selling her Crypto Punk.
She discovers Nftperp and opens a 50 ETH short position on the exchange. If the floor price of CryptoPunk drops to 45 ETH, her CryptoPunk is now worth 45 ETH, but she can close her short position with a 5 ETH profit.
Instead of losing 5 ETH with the floor price drop, Sarah can now hedge her position with no value lost. And if the floor price of CryptoPunk increases to 55 ETH, Sarah would have a loss of 5 ETH on her short position but her CryptoPunk is now worth 5 ETH more.
How To Get The $PERP Airdrop
Nftperp has a confirmed airdrop campaign called "nftperp Odeshi" which is a retroactive airdrop for private beta traders. Their website homepage allows you to apply for the whitelist.
Users who participate in the private beta by trading on the platform will be eligible for the airdrop, based on their total trading volume and activity. Private beta traders will earn $vNFTP, a voucher token that can be converted into $NFTP in the future.
How To Set Up Arbitrum
Before you can use Nftperp, you will need to do the following things:
How To Use Nftperp
Keep in mind, this only works if you get accepted into their Private Beta which you can apply for on the website homepage. If you're not accepted yet, you can try Paper Trading in the meantime. Here is what to do once you're whitelisted:
Connect Your Wallet
Visit Nftperp and connect your wallet in the top right corner.
Select The NFT You Want To Trade
Pick the NFT you want to trade and decide if you want to go long or short. Choose how much you want to trade and the leverage you’d like to take (between 1x and 10x).
Then, "Approve" your trade, confirm it on your wallet, and wait for it to execute. You will have to pay a small gas fee.
Monitor Your Trade
You will then be able to view details of your trade as you can see in these images.
In conclusion, Nftperp is a decentralized exchange protocol that allows traders to open long or short positions on NFTs with up to 10x leverage. This provides a way to hedge positions and profit from price movements of NFTs without owning the actual NFTs.
The platform offers a variety of features such as leaderboards, analytics, and paper trading to help users improve their trading strategies and track their performance. Transactions on the Arbitrum network are very cheap, and the platform is accessible to a global audience as long as you have a Web3 wallet.
However, it is important to note that the platform is still in its beta phase, and it only supports a limited number of NFTs at the moment. Additionally, liquidity is important for Nftperp to work effectively and as it is a new platform, liquidity may not be sufficient yet.
The Bottom Line
Overall, Nftperp is an innovative platform that provides a new way to trade NFTs and offers a variety of features to help users improve their trading strategies. However, it is important to understand the risks involved and to keep in mind that it's still in Private Beta.