NFTEA: The First Multi-Dimension NFT Options Product Based on Sports Events
As sports culture and crypto economy come together, and major event such as the Qatar World Cup approaching, derivatives based on sports events present new opportunities for crypto investors.
NFTEA, a Web3-based NFT ‘Tea House’ has NFT options, Games, Galleries, and many other derivatives. It has a brand-new community governance, and a fully decentralized contract interaction that achieves total fairness.
For the first time, NFTEA integrates NFT, options, and sports culture in its core, allowing investors to enjoy the event while also participating in options trading and earning profits.
NFT multi-dimension option products for sports events
In the run-up to the World Cup 2022 in Qatar, the NFTEA World Cup 2022, an NFT-based option product, has been launched, creating several firsts in its inception:
- The first sports NFT option;
- The first multi-dimension option NFT;
- Taking the lead in integrating AMM into NFT option.
NFTEA World Cup 2022’s products run fully decentralized on-chain. Based on a simple option mechanism, users can support their favorite teams by purchasing options of different teams.
Options represent a certificate of options assets with multiple conditions and potential future value, which can be traded on markets such as Opensea at any time. This right will be exercised at the conclusion of the Qatar World Cup. Investors holding different teams are expected to receive substantial equity income.
The NFTEA project is supported by Qatar 2022 Digital Twin, which is the first meta-universe ecosystem supported by the Qatari Royal Family.
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. The team option records the team information, the date of exercise, the expected return, etc. The team NFT records the time of buying, team information, etc. Both team options and NFTs are based on Ethereum’s ERC1155 standard.
Users have to purchase the NFT options to participate in the events. NFTEA has adopted the AMM mechanism, with the initial price as 3USDC. Later the price-making mechanism is completely decentralized and determined by the market, deciding factors include aspects of the team’s performance, market moods and community feedback. For example, before the game starts, the future performance of a team is still unclear, so the price of options will not be high; once the game starts, and the stronger team(s) present themselves, which indicates the increasing possibility of earning profits from such team(s), then the price of options will surely increase.
This means that the cost of buying option cards for stronger teams will increase significantly as the game progresses, and the earlier you purchase, the lower the cost will be, and the more profits you will receive (early entrants can earn the most). Meanwhile, the cost of some unpopular teams is relatively low, by using appropriate strategies you can also earn some benefits.
The team NFT represents NFT options, which are used as a symbol and collectible item 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 income, while all the remaining sales will be fed back to participating users.
Depending on the final score of each team, the purchaser of the team’s NFT option will be able to gain 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-place, fourth-place, quarterfinal, top 16, out of top 16), the purchaser of the team’s NFT options will have the possibility of receiving different amounts of income and may also have losses.
We factor in both the cost and the number of sales. Assuming that the number of options sold for each team is uniform, we will get the following cost-benefit relationship:
A single team (40,000 in total)
- If 5,000 cards were sold, the average price of option 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 also sold the same number of options).
- If 10,000 cards were sold, the average price of Option 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 were sold, the average price of Option 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 were sold, the average price of Option 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 were sold, the average price of Option 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 were sold, the average price of Option 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 (the total is 40,000), of which Team A wins the championship, the final return can be double the average price of 8U for the sale of 20,000 options, which is 16U.
As for the earliest investors who bought in while the price is at 3U, they may get 4x the return. Those who bought later, despite the decline in returns, could still get quite a substantial return. With this model you can see that users who participate early are the ones who stand to profit most.
It is worth mentioning that on the Option details page of each team, the highest payoff (if they win the championship) and lowest payoff (if they did not end up in top 16) of the Option will be continuously updated in real time. Users can use this information to judge the teams and people’s expectations for them, combine such information with the current price to make an overall judgment and decide which team’s Option to purchase.
2. Last Buyer (1%)
The last buyer of all teams will receive an additional grand prize of 1% of the team’s prize pool.
3. Referral reward (5%)
We’ve got referral rewards! When a user invites a friend to buy an NFT option, they will receive 5% of the sales commission directly. For example, if player B purchases a 3 USDC option through player A’s referral link, player A will immediately get 5% of the sales in their address, which is 0.15 USDC. This is another way for users to get more profits.
4. Lotto Prize Pool (3%)
This part of the revenue pool will hold various small activities, such as Blind boxes, Card collection, Airdrops, etc.
5. Community incentives (1%)
This part of the revenue pool is used to reward active community members and administrators, to incentivize those who actively contribute to the project.
The NFTEA World Cup 2022 product series is a pilot for the team to engage in NFT Option in the field of sports. From 2023, we will launch products for the five major European leagues, the NBA, E-sports (Dota, League of Legends, CS) and other diversified Sports NFT Option products to meet our users’ needs.
A Web3-based NFT ‘Tea House’ has NFT options, Games, Galleries, and many other derivatives. It has brand-new community governance and a fully decentralized contract interaction that achieves total fairness.
NFTEA has launched an exclusive NFT Option product for the World Cup Qatar 2022, which can be used to purchase your own corresponding NFT Option cards, support your favorite team while participating in Options trading and sports.
Make friends, play and earn. Have fun!
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