Introducing OpenSky

What is OpenSky?

At OpenSky, we aim to build an advanced smart contract blockchain platform at the nexus of DeFi and NFT that will empower anyone with an Internet connection to trade, stake, borrow and lend unique digital assets in a secure, trustless, and permissionless manner. In a nutshell, we are a DeFi protocol that enables NFT stakers to value their NFTs and borrow against them on demand while maintaining control and exposure to further upside.

OpenSky Introduces an Innovative Solution

OpenSky has created a breakthrough solution to NFT trading and staking problems with the development of a smart contract-based automated market making (AMM) protocol for NFTs based on sophisticated bonding curve pricing algorithms.

  • Real-time NFT valuation based on the ‘the wisdom of the crowd’
  • Liquid and deterministic prices provided algorithmically
  • On-demand borrowing by NFT stakers at market-determined interest rates
  • Trading fees and interest payments shared proportionally by LPs
  • Tokens can be staked at leading DEXs such as Uniswap to earn additional income in yield farming strategies
  • S-curve model -This dynamic bonding curve starts with very a attractive token price which attracts early adopters who hope to earn large capital gains from subsequent buyers driving the price up to a high plateau where marginal trading has minimal effect on price. At this point, the early buyers will be in an advantageous position with large unrealized capital gains. The defining feature of this model is that price changes can be quite volatile at different points on the S-curve. In other words, it is a high risk/high return pricing model suitable for aggressive traders who are aiming to earn sizable capital gains on the token price appreciation, above and beyond a proportional share of the trading fees and interest income derived from the NFT-staked loan.
  • Constant price model — This stable bonding curve ensures that all tokens will be stable in price and only the quantity of tokens changes as tokens are minted or burned. In this market, LPs need not worry about losses from price changes and will benefit solely from trading fees and interest payments from NFT-staked loans. This bonding curve model is low risk/moderate return. Since the price is stable by design, LPs forego the upside price potential in return for not having to worry about downside risk.
  1. The NFT staker can use the borrowed funds indefinitely as long as the interest is paid according to the smart contract terms. In this case, LPs will continue to earn trading fees and interest in perpetuity.
  2. The NFT staker can pay back the outstanding principal and interest at any time and the smart contract will automatically unlock the NFT asset and sent it to the NFT staker’s wallet address. All existing pool tokens will be burned and the appropriate value of reserve tokens will be sent back to the LPs’ wallets. At this point, the liquidity pool will be successfully terminated and deleted from the platform.
  3. The NFT price drops below the liquidation level triggering a liquidation event and temporarily places the market into an ‘unhealthy’ condition. At this point, the NFT staker can add a sufficient amount of reserve tokens to the market to restore it to a ‘healthy’ state and retain ownership of the staked NFT. However, if a liquidator pays off the loan in full before the NFT staker remits the required amount of reserve tokens, the NFT staker will lose the staked NFT to the liquidator. Therefore, the NFT staker must monitor the situation closely when the price is near the liquidation level.

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OpenSky Finance

OpenSky Finance

A DeFi protocol that enables NFT stakers to value their NFTs and borrow on demand while maintaining control.