Protocol

Overview of the EXA Market protocol.

Empowering users

The EXA Market protocol introduces a new range of possibilities for peer-to-peer trading on the Algorand network.

The protocol allows users to:

  • Trade both NFTs and fungible tokens

    • Unlike Ethereum where NFTs use ERC721/ERC1155 standards and fungible tokens use the ERC20 standard, Algorand assets share the same standard called ASA (Algorand Standard Assets). This gives the ability to natively support a wide range of operations without any extra layer.

  • Exchange up to 4 assets* at once (bundle of assets)

    • Up to 4 assets can be bundled for sales at the moment.

    • For instance: a user could sell (ASA 1 + ASA 2 + ASA 3 + 100 ALGO) for (ASA 4).

    • Important to point out that the 4 assets limit could be extended in the future according to market needs.

  • Sell NFT for any type of assets

    • Users are not just limited to the native ALGO payment token, any type of ASA can be used as a payment method thus enabling NFT to NFT trades by design.

  • Make offers

    • Negotiate with any user for both NFTs and fungible tokens.

  • Perform standard sales, auctions and multi-mints.

*assets here refer to NFTs and fungible tokens.

Sales types

As mentioned in the last section standard sales, auctions and multi-mints can be performed.

Standard sales

Baskets* are sold for a fixed price specified by the seller. This sale can be made public (to the market) or private (to a specific user) and can have start and end listing dates.

*basket(s) represent(s) the container(s) whereby assets are sold

Auctions

  1. Normal auction – Potential buyers bid in an auction in order to claim the assets in the basket, and the highest bidder wins.

  2. Reverse/dutch auction – The price of a basket is reduced according to the progression of time.

Multi-mints

A basket containing a supply of a single asset type, where different buyers can purchase portions of the supply available.

Creator fees

The Creator sets its fee (up to 15%) globally on-chain using its Creator Address. That means that all assets created by this address will be governed by this fee. ​ In addition to earning royalties in ALGO, Creators could also earn royalties over time in the following currencies, if they have opted-in the assets. Here is the list of assets that the protocol currently supports as means of payment:

Listing of a single asset

Let’s say Creator has created 10 NFTs with Creator Address and sets its royalty to 8%. All of these NFTs will have a 8% royalty attached to them, meaning that 8% of the listing price will be paid to Creator whenever a sale occur.

Case study 1

Seller lists an NFT from Creator for 100 ALGO.

Listing for 100 ALGO

Buyer purchases the NFT:

  • 8 ALGO goes to Creator

  • 1.99 ALGO goes to Platform fee

  • 90.01 ALGO goes to Seller

Case study 2

Seller lists an NFT from Creator for 200 USDC.

Listing for 200 USDC

Buyer purchases the NFT:

  • 16 USDC goes to Creator

  • 3.98 USDC goes to Platform fee

  • 180.02 USDC goes to Seller

Listing of a bundle of assets

The EXA protocol allows users to create bundles of up to 4 assets but how do the royalties are computed? Especially for bundles with assets from different Creators? Let’s find out in this section. ​ The royalties are computed according to the following formula:

R=PNiNriR = \frac{P}{N}\sum_{i}^{N} r_{i}
  • RR is the total royalties a Buyer will pay to the Creators

  • PP is the price of the listing

  • NN is the number of assets with a Creator fee set (> 0%)

  • rir_{i} is the royalty of asset of index i

Case study 1

Seller lists a bundle of 3 NFTs from Creator for 100 ALGO. ​ Creator has 5% royalties set.

Bundle of 3 NFTs listed for 100 ALGO

Buyer purchases the NFT:

  • 5 ALGO goes to Creator

R=100313ri=1003 ×(r1+r2+r3)=1003 ×(0.05+0.05+0.05)=5R = \frac{100}{3}\sum_{1}^{3} r_{i}=\frac{100}{3}\ \times (r_{1}+r_{2}+r_{3})=\frac{100}{3}\ \times (0.05+0.05+0.05)=5
  • 1.99 ALGO goes to Platform fee

  • 93.01 ALGO goes to Seller

Case study 2

Seller lists a bundle of 3 NFTs from Creator1, Creator2, and Creator3 for 100 ALGO. ​

Creator1 has 9% royalties set. Creator2 has 4% royalties set. Creator3 has 8% royalties set.

Bundle of 3 NFTs listed for 100 ALGO

Buyer purchases the NFT:

  • 7 ALGO in royalties goes to the Creators (Creator1, Creator2, and Creator3)

R=100313ri=1003 ×(r1+r2+r3)=1003 ×(0.09+0.04+0.08)=7R = \frac{100}{3}\sum_{1}^{3} r_{i}=\frac{100}{3}\ \times (r_{1}+r_{2}+r_{3})=\frac{100}{3}\ \times (0.09+0.04+0.08)=7
  • 3 ALGO goes to Creator1

  • 1.33 ALGO goes to Creator2

  • 2.66 ALGO goes to Creator3

  • 1.99 ALGO goes to Platform fee

  • 91.01 ALGO goes to Seller

Case study 3

Seller lists a bundle of 3 NFTs from Creator1, Creator2, and Creator3 for 100 ALGO. ​

Creator1 has 9% royalties set. Creator2 has 4% royalties set. Creator3 has 0% royalties set.

Bundle of 3 NFTs listed for 100 ALGO

Buyer purchases the NFT:

  • 6.5 ALGO in royalties goes to the Creators (Creator1, and Creator2)

R=100212ri=1002 ×(r1+r2)=1002 ×(0.09+0.04)=6.5R = \frac{100}{2}\sum_{1}^{2} r_{i}=\frac{100}{2}\ \times (r_{1}+r_{2})=\frac{100}{2}\ \times (0.09+0.04)=6.5
  • 4.5 ALGO goes to Creator1

  • 2 ALGO goes to Creator2

  • 0 ALGO goes to Creator3

  • 1.99 ALGO goes to Platform fee

  • 91.51 ALGO goes to Seller

Markets

Market
Sales type
Platform fee

Primary

Standard sales, Auctions, Multi-mints

3.99%

Secondary

Standard sales, Auctions

1.99%

Algorand inheritance

Being built on Algorand, the protocol natively inherits essential features such as:

  • Low gas fee

    • Network fees cost less than a penny. This limits the risk of paying more fees than the value of the asset itself, opening the doors to new users and use cases.

  • Low carbon footprint

    • Its Pure Proof of Stake (PPoS) consensus algorithm makes Algorand a sustainable blockchain with very low power consumption in contrast to other chains. In addition to that it offsets its additional carbon footprint with environment-focused organizations (more details provided here).

  • Low block confirmation time

    • It takes less than 3 seconds for a transaction to get validated.

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