It is difficult to ignore how NFTs have taken the world by storm. NFTs are being acquired for many different reasons, some as investments, some as collectible items and others to support artists. But, the majority of the population are not art collectors; they aren’t willing to spend so much money in an industry they don’t understand, nor should they;making NFTs difficult to buy/sell and to establish a fair price. Properly aims to lower the barrier of entry allowing everyone to participate in a brand new asset class that has massive potential for the future. To this end we were inspired to create a platform that would simplify and instill trust in investing in the NFT market. We’ve gone on a journey to create a platform inspired by “Mirror” and ‘Synthetixs”, to bridge the gap between DEFI and NFTs.
What it does
Properly Protocol is a derivative platform for the financialization of the NFT market. Using the graph protocol to query the sales price of NFTs being sold in a given market such as decentraland, rarible, opensea, and many more to create a token that tracks the value of the market. although this is a simple asset it can be made more complex and appealing. We successfully created a token that tracks the median sales price of land being sold in Decentraland for a given time period. This token is called dLand and can be minted/burned/ traded and farmed to earn DPI governance tokens which will have more use cases later on.
From a technical point of view
-Using Chainlink Price Feeds, we pulled data on Mana/USD price, ETH/USD to create a ETH/MANA price. -Using the The Graph API to get DATA on Decentraland Parcel prices. -Developed an API that returns the mean price from 750 data points received from The Graph. -Using ChainlinkClient to get the price data from API to the on chain smart contract. -Collateralization mechanism -Asset routing to Compound Finance. -Index Asset creation/burning mechanism. -Sushiswap inspired farming mechanism. -Governance token deflation Mechanism. Using acquired interest from compound. to buy back tokens from uniswap and burn them. -Frontend: the User Interface to interact with the protocol.
Challenges we ran into
-Our aim from the beginning was to build a project that could be continued on after the hackathon and to this end had to keep decentralization and marketability a key factor. Building a unique platform that hasn’t been done before in such a short time while also ensuring scalability for the future was challenging.
-Coding for the first time in Solidity
-Different versions of Solidity (Had to deploy oracle in one version protocol in other)
-Building the architecture that would be maintainable for years to come. (Currently it is only done to support one index token.)
-Figuring out how to put together a decentralized way of getting Index price data. (The data is coming from The Graph, but we still need to do some math on it.)
-Math in Solidity took me a minute to understand.
-Figuring out how to interact with contracts like Compound and Uniswap and testing it.
-Price feeds on test networks.
Accomplishments that we're proud of
Given only a month to complete this hackathon we started with little to no solidity knowledge. Over this time we were able to build a fully function DEFI protocol with only 2 developers; in traditional finance an MVP such as this could take months and a team of developers. We are incredibly proud of the advances we made in such a short time to produce a financial product that could theoretically hold millions of dollar in value. We’re also proud of the team we were able to form, I have always found the crypto community to be very inviting and inclusive but I couldn’t have imagined bringing together such a passionate team for a competition such as this.
What we learned
Solidity Chainlink Financial Derivatives
What's next for Properly Protocol
Properly’s main goal for the following months will be to work on community engagement to build a transparent and appealing asset that is designed for them. The future of Properly Protocol is difficult to layout past a few months due to community governance but the ethos is simple. We will focus on being the most redundantly transparent team in terms of financial disclosure, technological development, and issues in the protocol.
While a portion of the team is focusing on the community engagement, the other half will focus on development to onboard more marketplaces and create more complicated assets. Using our NFT derivatives we believe we can establish a baseline price for NFTs in specific markets which in turn opens the door for asset backed derivatives allowing for NFTs to be used as collateral. Collateralized NFTs could become a major driver for the asset class bringing legitimacy and functionality that does not exist today.
In addtion we must:
Improve the architecture to enable easy addition on new indexes. Improve the contracts and add additional functions for liquidation. Collateral from ETH to ERC20 with a different variety of assets such as stablecoins Get contracts audited. Move onto a sidechain either Polygon or BSC Improve and plan our tokenomics.
Follow us on:
Medium or on Twitter @ProperlyProto