NiftyConnect Protocol Litepaper
0x9Df5
May 10th, 2022

NiftyConnect -  Decentralized NFT aggregation trading protocol

Website: https://niftyconnect.org/

Email: hello@niftyconnect.org

Twitter: @niftyconnect_

List, trade, and build on the leading decentralized NFT aggregation trading protocol

NiftyConnect is the first composable, decentralized and open trading protocol that any application can adopt, plug into, jointly build, and share the order flow data on-chain. This will effectively benefit the entire NFT ecosystem by improving the matching efficiency of NFT trading, essentially solving the industry-wide problem of insufficient liquidity of NFT assets, and also slowly diminishing the dominance of centralized order systems.

  • Decentralized on-chain order flow
  • Transaction fee based on governance, starting from 0%
  • Innovative transaction fee distribution
  • Single-step NFT royalty setup

Trade NFTs, make collection or trait offers, and join an auction completely on-chain. Unlike other marketplaces running a centralized order system, NiftyConnect is giving the power and control directly to the ecosystem participants which include NFT marketplaces, wallets, social apps, data platforms and more saving their effort and cost by focusing on crafting better user-experience products.

  • The most comprehensive feature set of any NFT trading protocol
  • Fully decentralization & on-chain orders
  • Non-custodial listings
  • Up to 24% more gas efficiency
  • Collection orders + Trait orders
  • Dutch-style auction
  • Instant royalties for creators
  • A developer-friendly SDK across multi-chains (coming soon)
  • Open source

At its core, NiftyConnect is a Web3 native protocol. It has been built with visions of decentralization, open-source, open-access, and the features to serve a bigger NFT ecosystem. Governance token is being built, governance rights will be empowered, and every participant matters. We believe that this is a step further into the real Web3 NFT market.

The Operation Principles & Mechanism of NiftyConnect Protocol

1. Co-build & share NFT order flow data on chain through the NiftyConnect protocol

The NiftyConnect protocol is a fully "decentralized" NFT aggregation trading protocol. All the orders will be directly put on chain, getting rid of any centralized order system and potential security problems caused by the centralized storage of users’ signature prices.

  1. Products and protocols can easily catch any NFT pending orders through the NiftyConnect protocol and directly match the trades with their users;
  2. Users can directly place orders through the NiftyConnect protocol and enter a wider range of NFT trading markets (built by most of the Web3 products and protocols that have been integrated).

2. The community has the governance rights on the transaction fees through the NiftyConnect protocol.

The NiftyConnect protocol is a revolutionary and innovative trading protocol that supports its community to decide the NFT transaction fees based on governance rights. It adheres to the vision of Ethereum, promotes the development and progress of the NFT industry, and effectively reduces frictional costs associated with NFT asset transactions.

3. Establish a fair transaction fee distribution mechanism on chain through the NiftyConnect protocol.

For NFT transactions conducted through the NiftyConnect protocol, the transaction fee will be automatically allocated to the order generating party and the matching party of the NFT order. Through the commission sharing mechanism of the NiftyConnect protocol, all participants will be effectively encouraged to participate, in order to maximize the order matching efficiency.

The parties involved in completing a transaction:

  • NiftyConnect Protocol, defined as D;
  • Seller, defined as S;
  • Pending order platform, defined as P1;
  • Buyer, defined as B;
  • Matching platform, defined as P2;

Assuming that S sells a Doodles NFT on the P1 platform, he has the right to set the price P of the selling Doodles NFT and the fee F that he is willing to pay:

The interval of the P parameter: 0 ≤ P;

The interval of the F parameter: 0% ≤ F ; (starting from 0%)

Transaction fee distribution (testing phase)

  • Protocol developer D allocation: 0%
  • P1 platform allocation for generating pending orders: 80%
  • Matching platform P2 allocation: 20%

(*Note: The allocation mechanism can be adjusted through governance in the middle and late stages of the development of the protocol to meet the needs of the market)

After the order is put on chain, buyer B completes the transaction at the price P on platform P2. Then the final distribution of the parties is as follows: (0.5% transaction fee as an example)

The income obtained by the NiftyConnect protocol D: P * 0.5% * 0%;

The income obtained by the pending order platform P1: P * 0.5% * 80%;

The income obtained by the matching platform P2: P * 0.5% * 20%;

Seller S gets: P * (1-0.5%-royalty)

Buyer B gets: a Doodles NFT

4. Provide NFT creators with a unified and effective mechanism for setting transaction royalties through the NiftyConnect protocol

The current NFT market is a bit chaotic. NFT creators need to actively communicate with multiple NFT marketplaces to complete the royalty setting, otherwise, the royalties cannot be captured through the trades. Meanwhile, there is a lot of complex communication work and friction costs that happen through the process. Now, with the NiftyConnect protocol, NFT creators can set NFT transaction royalties at one time and access multiple NFT marketplaces.

The NiftyConnect protocol development docs

The NiftyConnect protocol Security audit

The NiftyConnect protocol has been audited by PeckShield, and the audit reports are as follows:

The roadmap of the NiftyConnect protocol

Phase 1:

The NiftyConnect protocol aims to develop into a NFT underlying transaction aggregation protocol that is widely used by Web3 developers to solve the industry problems of low matching efficiency and insufficient liquidity in the NFT market.

Phase 2:

On the basis of phase 1, the NiftyConnect protocol can rely on the price data on chain to form a credible NFT asset price oracle, as to support NFT financial derivatives.

Phase 3:

With the development of the NiftyConnect protocol ecosystem, the NiftyConnect developer team will actively explore the underlying blockchain network to solve various non-standardized problems and drawbacks in the NFT market.

Over the next 12 months the NiftyConnect protocol development roadmap is as follows:

2022 Q2:

  • Launch the NiftyConnect protocol website: https://niftyconnect.org/ and release the NiftyConnect v1.0 version protocol code;
  • Launch MVP product (as a live case)
  • Release the NiftyConnect protocol developer docs and SDK;
  • Complete the security audit;

2022 Q3:

  • Launch the open beta test;
  • Complete the initial integration with early aggregators, wallets, marketplaces & more;

2022 Q4:

  • Introduce the initial NiftyConnect DAO;
  • Host the NiftyConnect protocol hackathon to have more Web3 developers understand and adopt the NiftyConnect protocol and build the NiftyConnect ecosystem;
  • Build up the initial NiftyConnect ecosystem;

2023 Q1:

  • Launch the protocol V2;
  • Release the token white paper and the tokenomics.

Join the NiftyConnect Community

As always, we love hearing from the community and people who support us from day one!

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