ABSNFT: Securitization and Repurchase Scheme for Non-Fungible Tokens Based on Game Theoretical Analysis

• Tác giả: Hongyin Chen, Yukun Cheng, Xiaotie Deng, Wenhan Huang, Linxuan Rong
• Ngôn ngữ: eng
• Ký hiệu phân loại: 519.3 Game theory
• Thông tin xuất bản: 2022
• Bộ sưu tập: Metadata
• ID: 184399

Tóm tắt

Comment: To appear in Financial Cryptography and Data Security 2022The Non-Fungible Token (NFT) is viewed as one of the important applications of blockchain technology. Although NFT has a large market scale and multiple practical standards, several limitations of the existing mechanism in NFT markets exist. This work proposes a novel securitization and repurchase scheme for NFT to overcome these limitations. We first provide an Asset-Backed Securities (ABS) solution to settle the limitations of non-fungibility of NFT. Our securitization design aims to enhance the liquidity of NFTs and enable Oracles and Automatic Market Makers (AMMs) for NFTs. Then we propose a novel repurchase protocol for a participant owing a portion of NFT to repurchase other shares to obtain the complete ownership. As participants may strategically bid during the acquisition process, our repurchase process is formulated as a Stackelberg game to explore the equilibrium prices. We also provide solutions to handle difficulties at market such as budget constraints and lazy bidders.