3.2 Convert
The Convert feature is a significant part of the Omura trading platform. It allows users to exchange NFTs for FPTs and vice versa. This process is managed through a dedicated smart contract that ensures a one-to-one ratio between the NFTs in the pool and the circulating FPTs.
How Convert Works
When a user decides to convert NFTs into FPTs, they need to deposit NFTs from a recognized project into the conversion pool. The smart contract then creates an equivalent number of FPTs and transfers them to the user's wallet. To convert FPTs back into NFTs, the process involves burning the FPTs, and then the smart contract randomly selects an NFT from the pool and sends it to the user’s wallet.
Pricing Mechanism
The price of FPTs is directly linked to the floor price of the NFTs in the specific collection within the conversion pool. This ensures that the value of FPTs aligns with the market’s valuation of the NFTs. The Omura platform's market dynamics, including supply and demand, influence the trading price of FPTs, maintaining a balance with the NFT floor price.
Convert Limitations and Considerations
Users should be aware of several aspects:
Random Selection: The NFT received from converting FPTs is randomly chosen, meaning it may not be the same as any previously deposited.
Market Dynamics: The value equivalence between FPTs and the NFT floor price can change with market conditions.
Liquidity and Volume: Pools with higher volume tend to have more stable pricing and make conversion easier, while lower-volume pools might face more volatility and liquidity issues.
By participating in the Convert process, users take part in a transparent system that facilitates NFT trading and ownership, contributing to a more accessible and diversified digital asset market.
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