The core of the All-Art Protocol are the first decentralized NFT swap pools running on Solana. On top of the protocol lies a new NFT standard which solves a major shortcoming of the current concept by embedding license rights into the very structure of NFTs and their behavior. We call this standard NFT-PRO.
License rights and legal contracts embedded into NFTs ensure that any transfer of ownership is properly managed on-chain, where both buyer and seller know exactly what is the agreed arrangement. As in real-life, there can be multiple types and levels of license rights for a single NFT item.
To bring liquidity to NFTs, each NFT is represented by its own LORT tokens (License Ownership Right Tokens). LORTs are not fractions of an NFT, but a utility token used to purchase licenses for that NFT. Each license has a price in LORTs, defined by the creator. LORTs make the value of licenses interconnected as they are universally required to obtain a license.
To buy a license for an NFT, a collector needs to purchase its LORTs and lock them in that license. Once the collector obtains a license, he is granted a license token (a receipt). If he wants to sell the license, depending on the type of license, he can return the license token (the receipt) in exchange for locked LORTs.
The All-Art Protocol ensures constant liquidity for NFTs by introducing a novel liquidity pool called cAMM (Capped Automated Market Maker). Once minted, LORTs are placed in cAMMs where all trades of LORTs happen.
The liquidity provider for NFT-PRO pools is the AART token. It is the infrastructure token of the All-Art Protocol that connects all NFT-PRO pools together. The All-Art Protocol creates cAMM pools for NFT-PROs with LORTs, and AART tokens are the fuel for the liquidity of each NFT-PRO. As the collateral in all pools, AART token enables easy swapping of NFT-PROs’ LORTs between pools, effectively creating an omnipool of NFT-PROs.
The All-Art Protocol runs on a new superior blockchain - Solana, with four key benefits:
Blazing speed and cheap transactions running on L1
Low energy consumption
Upgradable smart contracts