What Is an “NFT Appraisal Oracle”?
An NFT appraisal oracle is a decentralized service that provides a reliable, real-time estimate of an NFT's fair market value to a smart contract. Since NFTs are illiquid and subjective, these oracles use machine learning, sales history, and collection rarity data to generate a price feed, which is critical for calculating loan-to-value ratios for NFT collateral.
Glossar
Nft Appraisal
Appraisal ⎊ NFT appraisal is the process of estimating the fair market value of a non-fungible token.
NFT
Provenance ⎊ Non-Fungible Tokens, within cryptocurrency markets, represent a unique cryptographic token linked to a specific digital or physical asset, establishing verifiable ownership and authenticity.
Nft Appraisal Oracle
Oracle ⎊ The Nft Appraisal Oracle represents a critical infrastructural component within decentralized finance (DeFi), specifically addressing the valuation challenges inherent in non-fungible tokens (NFTs).
Fair Market Value
Benchmark ⎊ This value represents the consensus price at which an asset or derivative contract would trade between two informed, willing, and uncoerced counterparties in an efficient market.