NFTX is a platform for creating liquid markets for illiquid Non-Fungible Tokens (NFTs).

Users deposit their NFT into an NFTX vault and mint a fungible ERC20 token (vToken) that represents a claim on a random asset from within the vault. vTokens can also be used to redeem a specific NFT from a vault.

Benefits include:

• LP and stake minted vTokens to earn yield rewards

• Better distribution and price discovery for NFT projects

• Instantly sell any NFT by minting it as an ERC20 and swapping via Sushiswap

• Increased liquidity for NFT investors and speculators

Introduction to NFTX

How does it work?

Vault Creation

• Vaults can be created by anyone for any NFT asset on Ethereum. Once a vault has been created, any user can then deposit eligible NFTs into the vault to mint a fungible NFT-backed token referred to as an "vToken".

Minting vTokens

• Anyone can deposit NFTs into an existing vault (or one they have created) in order to mint a fungible vToken that represents a 1:1 claim on a random NFT from within the vault.

Floor Prices

• Users can then pool their minted vTokens in Automated Market Makers (AMMs) like Sushiswap to create a liquid market for other users to trade. With liquidity and trading volume established, the NFT-backed vToken enters into price discovery and a "floor price" is discovered.

Eligibilities

• The Mask vault allows any Hashmask to be deposited, however other vaults use an eligibility list that only allows a specific sub-category of NFTs to be deposited. For example, the Kitty Gen 0 vault has an eligibility list that includes only Kitties whose metadata is Generation 0. Other Kitties can not be deposited into this vault.

More information on adding or removing liquidity is available at NFTX academy.

Description of work

We want to Analyze user activity providing and removing liquidity from NFTX vaults from different aspects like:

• Which three vaults have seen the most activity over the past 60 days?
• similarities between these vaults or NFT projects

Analyze user activity providing and removing liquidity from NFTX vaults

To do this, we must first find the NFTX pool addresses where users can mint or redeem their NFTs.

There are so many pools in NFTX that it is very time-consuming to find their addresses manually.

So we extract the addresses of some of these pools and look them up in [ethereum_core.fact_event_logs] table to find the similarities between the NFTX pools and to be able to extract all of them from [ethereum_core.fact_event_logs]` table.

By comparing transactions related to minting and redeeming NFTs from pools, we find:

• When users mint a NFT(provide liquidity) in a pool, the value of the [Topics] field value for all transactions that has EVENT_NAME = Minted is equals to ["0x1f72ad2a14447fa756b6f5aca53504645af79813493aca2d906b69e4aaeb9492"].

• When users redeems their NFT from pool (remove liquidity), the [Topics] field value for all transactions that has EVENT_NAME = Redeemed is equals to ["0x63b13f6307f284441e029836b0c22eb91eb62a7ad555670061157930ce884f4e"]

According to the chart above, it can be seen that the highest activity performed in the liquidity pools was between May 20 and May 24.

Which three vaults have seen the most activity over the past 60 days?

By referring to etherscan, we extract the names of the pools.

• The first pool with the highest activity (provide/remove liquidity) is Milady Maker (MILADY) which accounts for 16% of all pool activities(provide/remove liquidity) in the last 60 days.

• The second pool with the highest activity (provide/remove liquidity) is GOBLINTOWN (GOBLIN) which accounts for 6% of all pool activities(provide/remove liquidity) in the last 60 days.

• The third pool with the highest activity (provide/remove liquidity) is Forgotten Runes Warriors Guild (WARRIOR) which accounts for 4% of all pool activities(provide/remove liquidity) in the last 60 days.

24% of the activities performed on the pools(provide/remove liquidity)in the last 60 days are related to the first 3 pools.

Similarities between these vaults or NFT projects

One of the criteria that we can compare with the NFTX pools activities is the sales volume of NFTs on NFTX or number of NFTs sold on NFTX.

According to the above graphs, it can be concluded that the amount of activity in the pools is highly correlated with the number of NFTs sold.