Developers will be able to access real-time NFT prices to build new DeFi apps like NFT loan markets and NFT indexes thanks to Coinbase’s introduction of NFT floor pricing feeds via its Cloud service.
The function, which was created in collaboration with Chainlink Labs, the team behind the Chainlink oracle solution, uses the NFT pricing algorithm from Coinbase Cloud to scan every NFT transaction in a collection across the major marketplaces, estimating the current floor price and updating it as new transactions are added to the chain.
The lowest purchasing cost for an NFT within a collection is represented by NFT floor prices.
Developers can support applications like NFT lending markets with some price security because they will know exactly how much the collateral will be worth if they have access to this data.
This may help prevent the fate of some NFT lending services, which have suffered due to the recent wild swings in cryptocurrency prices and collapsing NFT prices.
“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,” said Michael Li, the VP Data at Coinbase.
The pricing feeds will first follow a number of well-known blue-chip NFT collections, including World of Women, CryptoPunks, Bored Ape Yacht Club, and CryptoPunks.