Trading DAT
Last updated
Last updated
DAT NFTs are exclusively issued on the KiX platform, and traders can acquire them only after purchasing the $KIX platform token. Once obtained, these NFTs can be traded from within various areas of the platform, following a straightforward user journey as outlined in the DAT Sales Ticket.
The below is a diagram which shows the process of trading DATs and has the following flow:
Traders authorise the purchase of DAT NFTs using previously bought $KIX held within the user owned smart account
DAT NFTs are issued via a Bonding Curve directly from an on-chain smart contract which contains the Automatic Market Maker (AMM) - this is a completely decentralized process
As more DAT NFTs are sold in a particular footballer, the smart contract will automatically use the bonding curve to increase the DAT price via its publicly disclosed formula, this way the market can know that only when demand exceeds supply does the price of a DAT NFT increase
After commissions deductions, 100% of $KIX proceeds from DAT NFT issuance transactions are automatically transferred and locked within a liquidity pool dedicated to each individual DAT NFT
This means if a trader purchases an MBappe DAT NFT, all the $KIX used for this purchase goes into a dedicated liquidity pool for this DAT NFT only - there is no comingling!
However, this liquidity pool is communal at a trader level. Any trader can access it at any time by either swapping one DAT NFT for another or for liquidating their holdings in this specific DAT NFT
The liquidity pool will always be "bidding" for the DAT NFT's, this bid will be surfaced on the platform as a "Sell Price" and could be higher or lower than what the trader originally paid
The above described price difference is called a "spread", known in finance as a bid/offer spread. The presence of a spread means that the Sell Price will always be less than the current Buy Price
DAT trading commissions are currently set at 1% of $KIX notional for both buys and sells, this may change in the future, also for DAT2DAT swaps there are no buy only sell commissions
90% of DAT trading commissions is automatically transferred by same smart contract into the contest rewards pool, 80% into the current game group and 10% into the next game group
10% of all DAT trading commissions is taken by the treasury to help better the platform
Our primary goal is to provide exciting but consistent pricing across the whole footballer market without wild, unpredictable swings and delays in selling. This result is reliably achieved by using a unified bonding curve AMM for both the ‘offer’ price and the ‘bid’ price.
