What Is Tribe3?
Tribe3 is a decentralized exchange (DEX) that specializes in offering derivatives for non-fungible tokens (NFTs) and real-world assets (RWAs) like sneakers, trading cards, and watches. It allows users to take long or short positions on the floor prices of bluechip NFT collections and RWAs with leverage, transforming the traditional collectibles market.
Background
The platform is built by enthusiasts who understand the excitement and challenges of collecting rare items. Collectors often face issues such as high costs, inflexibility, illiquidity, and lack of simple hedging or shorting options in the traditional collectibles market. Tribe3 aims to address these inefficiencies by leveraging blockchain technology to enhance the trading experience.
How It Works
Tribe3 utilizes a virtual automated market maker (vAMM) system, where users can long or short a given NFT collection by depositing collateral into a smart contract vault. This vault acts as an independent settlement market, where all trading profits and losses are settled directly among the traders, providing a streamlined and efficient trading process.
Key Takeaways
- Flexible and Efficient Trading: Allows for both long and short positions on NFTs and RWAs with up to 5x leverage, making it flexible and capital-efficient.
- Lower Transaction Costs: Significantly reduces transaction fees compared to traditional collectibles trading.
- Enhanced Liquidity: Provides increased liquidity for collectibles, making it easier to trade large-ticket items without hefty capital.
- Virtual Market Model: Uses a vAMM model for decentralized and automated trading, which helps mitigate issues related to authenticity verification and asset maintenance.
- Accessibility: Enables traders to speculate on the value of collectibles with less capital at any time, increasing market accessibility.
