Litra Finance

1. What is Litra?

To solve the low liquidity issue of the NFT market, Litra will create deep NFT liquidity using advanced bonding curves and veToken model to provide NFT Liquidity as a Service and empower NFT pricing.

2. Why use Litra?

• As Litra reduces the cost of providing NFT liquidity and market-making, NFT asset issuers can maintain NFT liquidity and floor price at a lower cost;

• Litra is able to establish a liquidity pool with sufficient liquidity for NFTs, resulting in lower holding costs and reduced price volatility risk for NFT holders;
• Litra’s ability to lower the barriers to entry for the NFT trading market, especially for expensive blue-chip NFTs, enables numerous NFT traders to participate in the market at a more affordable cost and with reduced risk;
• Litra provides more opportunities for liquidity providers to earn trading fees and liquidity rewards;
• Litra DAO members can earn income, participate in governance, and gain higher liquidity rewards, which aligns the long-term interests of different parties with the protocol and resolves the principal-agent problem.

3. How does Litra work?

Litra wraps NFTs into corresponding fungible tokens (wNFT) to improve trading precision. Using AMM with auto-concentrated liquidity and customized bonding curves, Litra provides traders with a low slippage while reducing impermanent loss and management costs for liquidity providers. Besides, Litra introduces the VE model to incentivize liquidity providers to form sufficient liquidity in Litra by offering higher returns, which improves the price discorvery mechanism in NFT market.

In addition, the VE model also aligns the long-term interests of Litra’s core users and the protocol itself, and brings a liquidity guidance feature that helps reduce the cost of maintaining NFT liquidity for issuers while allowing VE token holders to monetize their governance rights.