ART coins are the native utility token of the All-Art Protocol and are used as collateral in cAMMs. Their main purpose is to provide the necessary liquidity in cAMM pools. ART coins are minted every time a new NFT-PRO is created and placed inside a cAMM. Because the pools are capped, there is no way to extract minted ART coins from the pools and compromise the basic economy of the protocol.
To purchase an NFT-PRO, every collector must buy ART coins on an open market and exchange them for LORTs from that NFT-PRO’s pool. This system creates a natural market pressure.
As ART coins are used in all NFT-PRO pools, this creates a unified standard for valuing works of art in what can be considered an omnipool of NFT-PROs collateralized in ART coins. This kind of solution opens up the possibility for easy swapping of LORTs, as they are all collateralized in the same value of exchange.