[R6] - Toko House 🏅

Toko House aims to create the backbone to power the decentralized financial (DeFi) world of non-fungible assets (NFTs). With the growth of the digital economy in web3 driven mostly by collectibles, gaming, and metaverse, it's critical that NFTs make use of DeFi mechanics such as Automated Market Making (AMM).

Currently, NFT AMMs are limited to "floor items" liquidity pools containing ERC20 tokens and NFTs that are priced evenly within the pool. Toko House innovates by introducing a weighting factor to the "classic" constant product formula x * y = k, where, at Toko, y = Σ wᵢ. This allows rarity to be priced within the pool and opens up the true potential of powering the liquidity of the growing digital economy of collectibles, gaming, and metaverse.

The rarity pricing at the smart contract level has been implemented in the MVP submitted for this hackathon - an improvement built on top of the Uniswap V2 contract - and future work includes many exciting features, such as:

• Creator LP SDK, which could be a transformative way for creators to go-to-market, where the initial sale of NFTs could dedicate a portion of the treasury to providing liquidity for their own collection, in turn, attracting better credibility with communities; and,

• Pricing APIs, with rarities finding their market value within the platform, wallets that currently only display portfolio value using the floor price will have the opportunity to provide more accurate portfolio valuation to their users.

These are just a couple of examples of the near future potential, and we believe Toko House is set to become a leading household name in the DeFi / NFT AMM space.

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The MVP scope step-by-step is:

User A

1) Go to https://toko.house (landing page, with blog implemented)

2) Click "Launch App" leads to the dApp pools page

3) Click connect wallet on Goerli, then click "Create Pool"

3.1 Select NFT collection (that you own) and click the NFTs you want to deposit

3.2 Select ERC20 token and quantity you want to deposit in the pool

4) Click "Deposit" and approve the transaction

User B (different wallet)

1) Connect the wallet at https://app.toko.house

2) Navigate to "Sell" or "Buy" (the MVP focused on the "Sell" side)

3) Execute a trade with the pool and observe the differentiated pricing of the item (we used Doodles on testnet)