Coinbase has joined forces with Chainlink Labs to launch real-world NFT floor price feed data via its cloud service. This will make DeFi and blockchain app development more transparent – as some NFT lending projects have suffered greatly thanks to the volatility of the crypto market.
What are NFT Floor Pricing Feeds?
NFT floor pricing feeds are a bank of the lowest purchase prices for NFTs within a collection. Before now, floor prices could be manipulated by some factors, but the recent Chainlink NFT Floor Pricing Feeds prevents this by making this data easily accessible to NFT builders. This will encourage the creation of new DeFi use cases. Using Coinbase Cloud’s NFT pricing algorithm, Chainlink Labs scans every NFT transaction in a collection across major marketplaces.
To explain the inspiration behind this idea, the VP of Data at Coinbase Michael Li stated: “We’re bridging the gap between transparency and security in the NFT space by bringing reliable and timely on-chain NFT Floor Pricing Feeds for the top NFT collections to the Web3 world.”
How does it Work Today?
The floor pricing feeds would monitor the most popular blue chip NFT collections like Bored Ape Yacht Club, CryptoPunks, Doodles, Azuki, VeeFriends, CloneX CoolCats, and others. With solid impenetrable infrastructure from Chainlink and Coinbase’s on-chain aggregation algorithm, the feeds will eliminate extreme price outliers, making them resistant to market manipulation. As a result, developers can rely on these NFT floor pricing feeds as a source of high-quality NFT data to create dNFTs, NFT lending, borrowing platforms, prediction markets, and indexes.
Why Did Coinbase Choose Chainlink Labs?
Chainlink Labs has been in the market and earned a reputation as “the most widely adopted decentralized oracle network” and the “standard for oracle networks” in the blockchain industry. They’re a blockchain agnostic, audited open-source software that securely manages credentials.