As sports culture and the crypto-economy collide, and as major events such as the Qatar World Cup approach, derivatives based on sports events present new opportunities for crypto investors.
NEW YORK, NY/ACCESSWIRE/November 24, 2022/ NFTEA, a Web3-based NFT “teahouse” offers NFT options, games, galleries and many other derivatives. It has brand new community governance and fully decentralized contractual interaction that achieves full fairness.
For the first time, the NFTEA is embedding NFT, options and sports culture at its core, allowing investors to profit from the event while participating in options trading and earning profits.
Multidimensional NFT Options Products for Sports Events
As the 2022 World Cup in Qatar approaches, the NFTEA World Cup 2022an NFT-based options product, was launched, creating several firsts during its inception:
- The first sporty NFT option;
- The first multidimensional NFT option;
- Take the lead in integrating AMM into the NFT option.
NFTEA World Cup 2022The products of are entirely decentralized on the chain. Based on a simple option mechanism, users can support their favorite teams by purchasing options from different teams.
Options represent a certificate of option assets with multiple terms and potential future value, which can be traded on exchanges such as Opensea at any time. This right will be exercised after the World Cup in Qatar. Investors who hold different teams should receive substantial equity income.
The NFTEA project is supported by Qatar 2022 Digital Twinwhich is the first meta-universe ecosystem supported by the Royal Family of Qatar.
How the decentralized NFT option is designed
NFTEA World Cup 2022 is built on the Polygon mainnet, with a total of 32 teams, each with 40,000 options and NFTs. Team option saves team information, exercise date, expected performance, etc. The NFT team records the purchase time, team information, etc. Team options and NFTs are based on Ethereum’s ERC1155 standard.
Users must purchase NFT options to participate in events. The NFTEA has adopted the MA mechanism, with the initial price of 3USDC. Later, the pricing mechanism is completely decentralized and determined by the market, the deciding factors include aspects of team performance, market moods and community feedback. For example, before the start of the game, the future performance of a team is still unclear, so the price of options will not be high; once the game starts and the strongest team(s) show up, indicating the increasing possibility of profiting from that team(s), then the price of the options will surely increase.
This means that the cost of buying option cards for stronger teams will increase dramatically as the game progresses, and the earlier you buy, the lower the cost will be and the more benefits you will receive (the early entrants can win the most). Meanwhile, the cost of some unpopular teams is relatively low, using appropriate strategies, you can also gain advantages.
The NFT Team represents NFT Options, which is used as a symbol and a collectible to give away to users for free after users purchase NFT Options.
Fully decentralized income system
Users who hold the NFT option can exercise their rights after the World Cup to earn money. When users purchase NFT options, 10% of the fee will be submitted to the development team as development funds and copyright revenue, while all remaining sales will be returned to participating users.
Depending on each team’s final score, the buyer of the team’s NFT option may earn different amounts of money, and may also lose money.
The revenue pool contains:
1. Team Reward Pool (90%)
According to the final results of each team (champion, runner-up, third, fourth, quarter-final, top 16, non-top 16), the buyer of the team’s NFT options will have the possibility of receiving different amounts of income and may also suffer losses.
We consider both the cost and the number of sales. Assuming that the number of options sold for each team is uniform, we will obtain the following cost-benefit relationship:
Single team (40,000 total)
- If 5,000 cards were sold, the average option price is 3.428 USDC and the highest price is 3.918 USDC. After winning the championship, theoretically 3.428*2=6.856 USDC can be recovered (if other teams have also sold the same number of options).
- If 10,000 cards have been sold, the average Option price is 4 USDC, and the highest price is 5.33 USDC, after winning the championship, theoretically 4*2= 8 USDC can be recovered.
- If 15,000 cards have been sold, the average option price is 4.8 USDC and the highest price is 7.68 USDC. After winning the championship, theoretically 4.8 * 2 = 9.6 USDC can be recovered.
- If 20,000 cards have been sold, the average option price is 6 USDC and the highest price is 12 USDC. After winning the championship, theoretically 6*2= 12 USDC can be recovered.
- If 25,000 cards have been sold, the average option price is 8 USDC and the highest price is 21.33 USDC. After winning the championship, theoretically 8*2= 16 USDC can be recovered.
- If 30,000 cards have been sold, the average option price is 12 USDC and the highest price is 48 USDC. After winning the championship, theoretically 12*2= 24 USDC can be recovered.
Therefore, when we assume that all teams sell 20,000 options (total is 40,000), of which Team A wins the championship, the final yield can be twice the average price of 8U for selling 20,000 options, i.e. 16U.
As for the first investors who bought while the price is at 3U, they can obtain 4 times the return. Those who bought later, despite lower yields, could still earn a fairly substantial return. With this model, you can see that users who participate early are the ones who profit the most.
It’s worth mentioning that on each team’s option details page, the highest payout (if they win the championship) and the lowest payout (if they don’t end up in the top 16) of the option will be continuously updated in real time. Users can use this information to judge teams and people’s expectations of them, combine this information with the current price to make an overall judgment, and decide on the option to buy the team.
2. Last buyer (1%)
The last buyer of all teams will receive an additional grand prize of 1% of the team pool.
3. Referral Reward (5%)
We have referral rewards! When a user refers a friend to buy an NFT option, they will directly receive 5% of the sales commission. For example, if Player B buys a 3 USDC option through Player A’s referral link, Player A will immediately get 5% of the sales to his address, or 0.15 USDC. This is another way for users to get more profit.
4. Lotto Jackpot (3%)
This part of the revenue pool will accommodate various small businesses, such as blind boxes, card collection, Airdropsetc
5. Community Incentives (1%)
This part of the revenue pool is used to reward active community members and admins, to incentivize those who actively contribute to the project.
The 2022 NFTEA World Cup The product series is a pilot project for the team to engage in the NFT option in the field of sports. From 2023, we will launch products for Europe’s Big Five Leagues, NBA, Esports (Dota, League of Legends, CS) and other diversified Sports NFT Option products to meet our users’ needs.
A Web3-based NFT “teahouse” offers NFT options, games, galleries and many other derivatives. It has brand new community governance and fully decentralized contractual interaction that achieves full fairness.
NFTEA has launched an exclusive NFT Option product for the Qatar 2022 World Cupwhich can be used to buy your own matching NFT options cards, support your favorite team while participating in options trading and sports.
Make friends, play and win. Enjoy!
Contact person: Yusuf
E-mail: [email protected]
THE SOURCE: NFTEA