LinoSwap is the world’s first rarity-friendly NFT AMM. For any NFTs, LinoSwap can give prices based on their rarity. Therefore, NFTs with high rarity can also be traded with LinoSwap at a fairer price. As a result, the range that our AMM can apply to may be 5–10 times the original range, or even more. In addition, LinoSwap issues LP Tokens to LPs and supports NFT flash swaps. This completely opens the gate of NFT-Fi to realize the ultimate bridge between NFT and DeFi, which will bring more composability to the combination of NFT and DeFi that was previously beyond imagination.

The NFT industry has two ends, one end is the financial/economic ecology with trading as the core, and the other end is the application ecology based on NFTs. The former can provide continuous power to the latter and help applications get better. The latter allows end users to continuously realize the value of NFT and its significance for the future.

NFT AMM will be the most important infrastructure of NFT-Fi. With LinoSwap the liquidity problem of NFT will be solved greatly, which is the biggest dilemma at the NFT trading end. Moreover, the composability of DeFi can also enable NFT to have more composable architecture.

The LinoSwap protocol consists of three parts: the Basic Curve, the Rarity Function, and the Rarity-Value Curve. We derive our Basic Curve from the constant product model, the Rarity Function from existing rarity tools, and the Rarity-Value Curve from the Pareto distribution.

Our basic curve is based on the bonding curve of the constant product model. It determines the benchmark price. The Rarity Function gives the rarity data of a specific NFT item, in form of rarity score rank percentage. Rarity-Value Curve describes the relationship between rarity and relative value. And the relative value refers to the value ratio of the NFT to the benchmark NFT.