ASKOL dNFT Derivatives
A new breed of dNFT hybrid assets derivatives markets and services
A dNFT derivative is minted each time an ASKOL user "Power Seeker" decides to enter a particular charged hybrid assets market by providing liquidity to that market and/or creating a charged market. Effectively the dNFT derivative not only represents the current hybrid asset value of the underlying pooled assets but also presents an estimated daily value including the rolled-in cumulative average yield to date for the dNFT expressed as a share of the pooled assets in a charged assets market.
Charged Assets Market Yield = Total Fees + Rewards
Fees: The amount distributed to a charged market from all fees earned to the select charged assets markets.
Additional Rewards: select charged markets will offer rewards from time to time or on-going, this is determined by market creators and ASKOL markets support and partner programs.
ASKOL markets support real-time yield updates by market. dNFT derivative holders are assured to receive accurate data with updated market yield values expressed as a cumulative APY projection (Annual Percentage Yield), actual yield payouts will vary and will occur in predetermined payout cycles, set by market creators. Cumulative derivative value is always comprised of the following: Charged assets market cumulative undistributed yield earned to date, dNFT share in a market, value of charged market hybrid assets and dNFT derivative liquidation value, determined in real-time.
Advantages of dNFT Markets include:
Low counterparty risk – dNFTs offer high-efficiency trade settlements, ensure fast, secure, and low-cost clearance of all transactions managed by smart contracts. This gives traders the assurance that their funds are safe and secure and can be moved in and out of the markets quickly.
Increased liquidity and pricing accuracy – dNFTs offer tight spreads between different hybrid assets markets, meaning participants can trade without price impact. In addition, traders also benefit from improved pricing accuracy due to enhanced market-making capabilities, thanks to real-time price feeds through network oracles. This increases the overall liquidity of the decentralized markets and leads to greater potential for profitable gains.
Flexible margin trading – dNFTs provide traders with a variety of margin options to help manage their risk exposure. These options include fixed margin amounts or adjustable limits depending on the desired level of risk tolerance. By allowing traders to enter into contracts with varying degrees of leverage, they can reduce their own capital commitments while still having the potential to make large profits if their investments prove successful.
Reduced volatility – Another advantage of using a dNFT is its ability to reduce market volatility through services such as stop orders, automated liquidation features, and short selling; all helping to reduce the overall risk associated with trading by providing some buffer against broader market fluctuations.
Increased transparency – dNFTs help to build confidence when entering into trading activities without fear of fraud or manipulative activity. Using dNFT derivatives enables users to more efficiently access predictive differential markets to take advantage of price movements with low to no counterparty risk and lower volatility. This helps create overall highly efficient open markets, and profitable decentralized markets and ideal for any trader looking to maximize returns with less risk.
Market value for all dNFT derivatives is correlated real-time and adjusted for the underlying market assets composed mean value, and adjusted for cumulative total unclaimed yield earned to-date.
Each dNFT derivative held by a Power Seeker is tracked in the Power Seeker's dashboard, providing access to real-time values for each dNFT which can be used to establish a current dNFT baseline value for trading in ASKOL prediction and differentials markets to earn additional "Power".
Options pricing are determined by categories Market Outperform or Market Underperform, a discounted short-term rate of measure for value decay of money is implemented based on a 30, 60, 90, 120, 180 or 360 day maturity period for all prediction markest positions. ASKOL markets contributors can utilize their dNFT derivatives to open covered positions and/or trade positions as per the market bid and ask offerings for buyers and sellers in market.
dNFT lock maturities are set at the time of minting an ERC-721 derivative when liquidity is provided to a charged market and can be changed in the future if the derivative is deemed to be "free to circulate".
Important to Note:sellers can only make a 100% profit or the amount of the premium they receive minus commissions and fees.
Whereas buyers have unlimited income potential once a strike position is locked for a charged hybrid asset offered in the ASKOL Predictive Differential Markets.
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