Participating investors include Spartan Capital, Newman Capital, Infinity Ventures Crypto, Modular Capital, Cogitent Ventures, Blockbuilders, Founderheads, Lapin Digital, Blockhype, etc.
Reportedly, the DEX will launch its mainnet beta on Arbitrum on May 3, 2023. The first phase will support 4 NFT series, including Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and CryptoPunks.
Tribe3 is an NFT Perpetual platform that allows users to trade NFT based perpetual futures contracts. Tribe3 has created a social networking tool that allows NFT users to collaborate and connect with each other.
Spartan Capital co-founder, partner and chief investment officer, Kelvin Koh, stated:
“We are excited to partner with Tribe3 in building out one of the leading NFT derivatives trading platforms. We believe that NFT is still in the early stages of development.”
Tribe3 creates virtual liquidity allowing users to trade using a vAMM model. This approach is consistent with the illiquid nature of the NFT.
Unfortunately, this methodology will result in platform arbitrage between Oracle and vAMM pricing. Tribe3 offers the following technique to narrow the gap between Oracle and vAMM prices: when the Oracle price is higher than the vAMM price (Oracle > AMM), the platform will ask the Short to pay the Long and vice versa .
Moreover, when the collateral falls below 10%, the position is liquidated by the liquidation bots. When a position is liquidated, the liquidation bot receives 50% of the value as a reward, and the remaining 50% goes to Tribe3’s insurance fund.
Derivatives trading with NFT is still quite new and Tribe3 has many opportunities to grow and attract users in the NFT market with unique features like Battle, Avatar.
DISCLAIMER: The information on this website is intended as general market commentary and does not constitute investment advice. We recommend that you do your own research before investing.
