The First Multi-Dimension NFT Options Product Based on Sports Events

As sports cul­ture and the cryp­to econ­o­my come togeth­er, and major events such as the Qatar World Cup approach, deriv­a­tives based on sports events present new oppor­tu­ni­ties for cryp­to investors.

NEW YORK, NY / ACCESSWIRE / Novem­ber 24, 2022 / NFTEA, a Web3-based NFT ‘Tea House’ has NFT options, Games, Gal­leries, and many oth­er deriv­a­tives. It has a brand-new com­mu­ni­ty gov­er­nance and a ful­ly decen­tral­ized con­tract inter­ac­tion that achieves total fairness.

For the first time, NFTEA inte­grates NFT, options, and sports cul­ture in its core, allow­ing investors to enjoy the event while also par­tic­i­pat­ing in options trad­ing and earn­ing profits.

NFT mul­ti-dimen­sion option prod­ucts for sports events

In the run-up to the World Cup 2022 in Qatar, the NFTEA World Cup 2022, an NFT-based option prod­uct, has been launched, cre­at­ing sev­er­al firsts in its inception:

• The first sports NFT option;
• The first mul­ti-dimen­sion option NFT;
• Tak­ing the lead in inte­grat­ing AMM into NFT option.

NFTEA World Cup 2022’s prod­ucts run ful­ly decen­tral­ized on-chain. Based on a sim­ple option mech­a­nism, users can sup­port their favorite teams by pur­chas­ing options of dif­fer­ent teams.

Options rep­re­sent a cer­tifi­cate of options assets with mul­ti­ple con­di­tions and poten­tial future val­ue, which can be trad­ed on mar­kets such as Opensea at any time. This right will be exer­cised at the con­clu­sion of the Qatar World Cup. Investors hold­ing dif­fer­ent teams are expect­ed to receive sub­stan­tial equi­ty income.

The NFTEA project is sup­port­ed by Qatar 2022 Dig­i­tal Twin, which is the first meta-uni­verse ecosys­tem sup­port­ed by the Qatari Roy­al Family.

How the Decen­tral­ized NFT Option is Designed

NFTEA World Cup 2022 is built on the Poly­gon main­net, with a total of 32 teams, each with 40,000 options and NFTs. The team option records the team infor­ma­tion, the date of exer­cise, the expect­ed return, etc. The team NFT records the time of buy­ing, team infor­ma­tion, etc. Both team options and NFTs are based on Ethereum’s ERC1155 standard.

Users have to pur­chase the NFT options to par­tic­i­pate in the events. NFTEA has adopt­ed the AMM mech­a­nism, with the ini­tial price as 3USDC. Lat­er the price-mak­ing mech­a­nism is com­plete­ly decen­tral­ized and deter­mined by the mar­ket, decid­ing fac­tors include aspects of the team’s per­for­mance, mar­ket moods and com­mu­ni­ty feed­back. For exam­ple, before the game starts, the future per­for­mance of a team is still unclear, so the price of options will not be high; once the game starts, and the stronger team(s) present them­selves, which indi­cates the increas­ing pos­si­bil­i­ty of earn­ing prof­its from such team(s), then the price of options will sure­ly increase.

This means that the cost of buy­ing option cards for stronger teams will increase sig­nif­i­cant­ly as the game pro­gress­es, and the ear­li­er you pur­chase, the low­er the cost will be, and the more prof­its you will receive (ear­ly entrants can earn the most). Mean­while, the cost of some unpop­u­lar teams is rel­a­tive­ly low, by using appro­pri­ate strate­gies you can also earn some benefits.

The team NFT rep­re­sents NFT options, which are used as a sym­bol and col­lectible item to give away to users for free after users pur­chase NFT options.

Ful­ly Decen­tral­ized Income System

Users who hold the NFT option can exer­cise their rights after the World Cup to earn mon­ey. When users pur­chase NFT options, 10% of the fee will be sub­mit­ted to the devel­op­ment team as devel­op­ment funds and copy­right income, while all the remain­ing sales will be fed back to par­tic­i­pat­ing users.

Depend­ing on the final score of each team, the pur­chas­er of the team’s NFT option will be able to gain dif­fer­ent amounts of mon­ey, and may also lose money.

The rev­enue pool contains:

1. Team reward pool (90%)

Accord­ing to the final results of each team (cham­pi­on, run­ner-up, third-place, fourth-place, quar­ter­fi­nal, top 16, out of top 16), the pur­chas­er of the team’s NFT options will have the pos­si­bil­i­ty of receiv­ing dif­fer­ent amounts of income and may also have losses.

We fac­tor in both the cost and the num­ber of sales. Assum­ing that the num­ber of options sold for each team is uni­form, we will get the fol­low­ing cost-ben­e­fit relationship:

A sin­gle team (40,000 in total)

• If 5,000 cards were sold, the aver­age price of option is 3.428 USDC, and the high­est price is 3.918 USDC. After win­ning the cham­pi­onship, the­o­ret­i­cal­ly 3.428*2=6.856 USDC can be recov­ered (if oth­er teams also sold the same num­ber of options).
• If 10,000 cards were sold, the aver­age price of Option is 4 USDC, and the high­est price is 5.33 USDC, after win­ning the cham­pi­onship, the­o­ret­i­cal­ly 4*2= 8 USDC can be recovered.
• If 15,000 cards were sold, the aver­age price of Option is 4.8 USDC, and the high­est price is 7.68 USDC. After win­ning the cham­pi­onship, the­o­ret­i­cal­ly 4.8*2= 9.6 USDC can be recovered.
• If 20,000 cards were sold, the aver­age price of Option is 6 USDC, and the high­est price is 12 USDC. After win­ning the cham­pi­onship, the­o­ret­i­cal­ly 6*2= 12 USDC can be recovered.
• If 25,000 cards were sold, the aver­age price of Option is 8 USDC, and the high­est price is 21.33 USDC. After win­ning the cham­pi­onship, the­o­ret­i­cal­ly 8*2= 16 USDC can be recovered.
• If 30,000 cards were sold, the aver­age price of Option is 12 USDC, and the high­est price is 48 USDC. After win­ning the cham­pi­onship, the­o­ret­i­cal­ly 12*2= 24 USDC can be recovered.

There­fore, when we assume that all teams sell 20,000 options (the total is 40,000), of which Team A wins the cham­pi­onship, the final return can be dou­ble the aver­age price of 8U for the sale of 20,000 options, which is 16U.

As for the ear­li­est investors who bought in while the price is at 3U, they may get 4x the return. Those who bought lat­er, despite the decline in returns, could still get quite a sub­stan­tial return. With this mod­el, you can see that users who par­tic­i­pate ear­ly are the ones who stand to prof­it most.

It is worth men­tion­ing that on the Option details page of each team, the high­est pay­off (if they win the cham­pi­onship) and low­est pay­off (if they did not end up in top 16) of the Option will be con­tin­u­ous­ly updat­ed in real time. Users can use this infor­ma­tion to judge the teams and peo­ple’s expec­ta­tions for them, com­bine such infor­ma­tion with the cur­rent price to make an over­all judg­ment and decide which team’s Option to purchase.

2. Last Buy­er (1%)

The last buy­er of all teams will receive an addi­tion­al grand prize of 1% of the team’s prize pool.

3. Refer­ral reward (5%)

We’ve got refer­ral rewards! When a user invites a friend to buy an NFT option, they will receive 5% of the sales com­mis­sion direct­ly. For exam­ple, if play­er B pur­chas­es a 3 USDC option through play­er A’s refer­ral link, play­er A will imme­di­ate­ly get 5% of the sales in their address, which is 0.15 USDC. This is anoth­er way for users to get more profits.

4. Lot­to Prize Pool (3%)

This part of the rev­enue pool will hold var­i­ous small activ­i­ties, such as Blind box­es, Card col­lec­tion, Air­drops, etc.

5. Com­mu­ni­ty incen­tives (1%)

This part of the rev­enue pool is used to reward active com­mu­ni­ty mem­bers and admin­is­tra­tors, to incen­tivize those who active­ly con­tribute to the project.

The NFTEA World Cup 2022 prod­uct series is a pilot for the team to engage in NFT Option in the field of sports. From 2023, we will launch prod­ucts for the five major Euro­pean leagues, the NBA, E‑sports (Dota, League of Leg­ends, CS) and oth­er diver­si­fied Sports NFT Option prod­ucts to meet our users’ needs.

About NFTEA

A Web3-based NFT ‘Tea House’ has NFT options, Games, Gal­leries, and many oth­er deriv­a­tives. It has brand-new com­mu­ni­ty gov­er­nance and a ful­ly decen­tral­ized con­tract inter­ac­tion that achieves total fairness.

NFTEA has launched an exclu­sive NFT Option prod­uct for the World Cup Qatar 2022, which can be used to pur­chase your own cor­re­spond­ing NFT Option cards, sup­port your favorite team while par­tic­i­pat­ing in Options trad­ing and sports.

Make friends, play and earn. Have fun!

Web­site: nftea.homes
Con­tact Per­son: Yusuf
E‑mail: [email pro­tect­ed]

SOURCE: NFTEA