Chainlink is bringing this NFT market data to the Web3 ecosystem, starting with Ethereum
To better support NFT builders, Coinbase Cloud and Chainlink Labs are partnering to launch Chainlink NFT Floor Pricing Feeds.
Non-fungible tokens (NFTs) have seen a period of explosive growth in the last few years, with a combined market capitalization currently sitting at more than 2 billion.
However, infrastructure for the NFT economy hasn’t caught up with growing demand. Builders in the NFT economy need accurate and reliable real-time market data to improve their products.
This requires a solid foundation of robust market data solutions and reliable trust-minimized infrastructure. Trust-minimized data feeds extend blockchain functionality by connecting smart contracts to real-world data, events, payments, and off-chain computation.
The Need for NFT Floor Pricing Feeds
NFT floor prices are important because they represent the lowest purchase price for an NFT within a collection. Chainlink NFT Floor Pricing Feeds make the latest NFT pricing data easily accessible to developers. By providing accurate, real-world data around the price of NFTs, developers will be able to create and deploy new DeFi use cases.
“We are excited about this partnership between Coinbase and Chainlink. We’re bridging the gap between transparency and security in the NFT space by bringing reliable and timely on-chain NFT Floor Pricing Feeds for the top NFT collections to the Web3 world.”
says Michael Li, VP Data, Coinbase.
How Does It Work?
The NFT Floor Pricing feeds use Coinbase Cloud’s NFT pricing algorithm. The algorithm scans every NFT transaction in the collection across major marketplaces, eliminates outliers, estimates the current floor price, and updates floor price estimates as new transactions come on-chain.
Furthermore, the pricing algorithm is powered by Coinbase Cloud’s NFT API, which has a free version available to use today. Together, this data feeds into a collection of Chainlink Data Feeds tracking the floor prices of the top 10 NFT collections with high-quality pricing data and an optimal liquidity profile.
The NFT Floor Pricing Feeds feature the following collections: Bored Ape Yacht Club, CryptoPunks, World of Women, Doodles, Mutant Ape Yacht Club, Azuki, VeeFriends, CryptoToads and CoolCats.
The NFT Floor Pricing Feeds are supported by Coinbase Cloud’s on-chain aggregation algorithm and Chainlink’s battle-tested oracle infrastructure that help eliminate extreme price outliers, making the feeds resistant to market manipulation.
Moreover, developers can use the NFT Floor Pricing Feeds for a wide range of smart contract use cases that rely on high-quality NFT data including:
- Lending & Borrowing: Power on-chain financial applications such as decentralized lending markets that allow web3 users to collateralize their NFTs.
- Index Creation: Track the overall market performance of the NFT market through a market-cap index.
- Prediction Markets: Accelerate NFT prediction markets by allowing exchange-traded markets to connect financial incentives to the trading outcomes of the NFT/token pairs.
- dNFTs: Enable a whole new class of dynamic NFTs by changing the appearance/functionality of traits based on conditional logic connected to the floor price of a NFT collection.
Why Chainlink?
Chainlink Network is a time-tested and widely adopted decentralized oracle network in the Web3 industry.
Thankfully, Chainlink already features a large selection of enterprise-grade data providers, helping connect smart contract developers with high-quality datasets and off-chain computation to enable the creation of advanced blockchain use cases powered by cryptographic truth.
Importantly, the Chainlink Network offers many critical features, including:
- Credential Management: Chainlink nodes can securely manage API keys and account logins. This creates a seamless integration in which Chainlink nodes can purchase Coinbase Cloud API subscriptions in the same manner that traditional users do today.
- Blockchain Agnostic: Chainlink is blockchain agnostic. This data is available on any current or future blockchain environment.
- Widely Adopted: The blockchain industry widely use the Chainlink oracle network.
- Provably Secure: Chainlink is thoroughly audited open-source software for leading academic research. It has a a proven history for helping secure tens of billions of dollars in value live in production.
Developers, follow this link to start deploying smart contracts leveraging NFT Floor Pricing Feeds today!
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