Borderless NAP Extension

The Native Assurance Protocol (NAP) is a solution designed to enhance NFT valuation using liquidity backing, in other words a liquidity framework.

At its core, NAP allows users to exchange ERC721 and ERC1155 tokens for the backed ERC20 class token, and vice versa. This is realized by integrating with Uniswap V2 for liquidity management and leveraging ERC20 tokens for assurance and collateral.

From a codebase point of view two new contracts were added and integrated with the existing architecture:

• BorderlessNAPTreasury used to facilitate premium groups
• B0rder1essNAP a NAP721 specifically designed with several activation and deactivation price alterations

From a feature point of view, the audited extension to the existing NAP ecosystem represents the following:

• an anti-price abuse mechanism was introduced in the B0rder1essNAP, where an extra fee is added for bulk buys, done in order to discourage mass activations that may be used in price manipulation
• initially a minimum activation cost of 200 USDC in LP equivalent was introduced
• groups for NFTs were created, where the cost of some is increased. Example, a legendary NFT would cost more on activations. Premium group logic implemented in the BorderlessNAPTreasury contract
• the old activation/deactivation price calculation model allowed bulk buy price arbitrage and manipulation. To counter this dynamic NFT prices were introduced
• a static UI fee of 1.5% was added on deactivations

More on the protocol can be found on the official documentation page.