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DeMask Finance is A on-chain Automated Market Makers (AMM) Protocol for Trading between NFTs and ERC20 Token.

DeMask Finance adds support for

• Create an NFT Collection and NFT LaunchPad: ERC-1155 NFT pairs against both ETH and ERC-20 tokens.

• NFT Decentralized Exchange: ERC-1155 NFT or ERC-721 NFT pairs against both ETH and ERC-20 tokens.

Designed with the purpose of increasing liquidity for the NFT market, the DeMask protocol will provide an interface for seamless exchange between ERC20 tokens or native tokens and NFT collections. By eliminating unnecessary intermediaries and offering liquidity pools, it enables faster and more efficient trading.

Simulation of Liquidity

DeMask is a system of interconnected smart contracts that all users can create and own liquidity pools and transact in a completely automated manner. Each pool will hold a pair of assets consisting of a token and an NFT, providing a fixed price for buying or selling at a predetermined moment for immediate trading. This also allows other contracts to estimate the average price over time for the two assets. Users who own liquidity pools will be rewarded when users exchange the asset pairs.

The Problems

• The declining appeal of the NFT market: NFTs have become a prominent trend in the past few years, but there are excessive risks for users when liquidity is not guaranteed, and the search for suitable buyers becomes challenging.

• Lack of price consensus: NFT prices lack any appropriate consensus as they heavily depend on the buyer's price point. For NFTs without interested buyers, there is virtually no liquidity. Traders cannot accurately predict future prices to make buying and selling decisions, which solely rely on project activity.

• Risks of forgery and fraud: Artworks associated with NFTs can be easily duplicated and replicated without the need for investment or costs to secure user rights. This has led to a proliferation of counterfeit artworks and the depreciation of the value of many NFTs.

• High transaction costs: High transaction fees will limit trading, as users consider costs versus profits for each transaction order, making it unattractive for low-value NFT collections.

The Solutions

DeMask is a pioneering platform that develops a protocol to provide liquidity to the NFT market. Its stringent mechanism assists projects and developers in creating liquidity within the ecosystem.

• Enhancing liquidity: The NFT market often faces liquidity challenges, making buying and selling NFTs cumbersome. By constructing liquidity pools, users can place their NFTs into a pool to receive ERC-20 tokens in return. This significantly boosts NFT liquidity, enabling users to easily buy, sell, and trade NFTs flexibly.

• Reducing risks for participants: With liquidity pools already in place, many risks are mitigated as transactions occur rapidly and securely.

• Facilitating investment and speculation decisions: By observing the trading history within liquidity pools, users can make well-informed investment decisions within the NFT market.

• Low transaction costs: Low transaction fees are appealing to new users and small-scale investors interested in trading and owning NFTs.

• Promoting fairness and transparency: Liquidity pools establish a fair and transparent trading environment for NFTs by providing clear information on liquidity, value, and distribution.