# NFTA Marketplace for Wrapped NFTs

NFTA Marketplace is a multi-chain marketplace on Andromeda, Ethereum, Avalanche, BNB Chain, and Polygon. OpenSea operates with a 3.5% platform fee, and the NFTA marketplace operates with a 2% platform fee.&#x20;

Anyone can request an NFT Collection be listed on NFTA Marketplace. However, the primary market funnel for the NFTA marketplace is based on three premises.

1. To play a role in the creator’s user journey, through Minting-as-a-Service and single NFT mint functions, NFTs can be bought and sold through the NFTA marketplace.
2. To facilitate sales of Merch-NFTs from NFT Apparel. Procurement of limited-run merch NFTs, or even real-world items, can be sold as NFTs that are burned upon redemption through the NFTA Marketplace.
3. To enable the procurement of a portfolio of an underlying asset(s) with NFTs as a vehicle. Underlying assets can be customized by the user or pre-defined allocations configured by a trusted source. The user’s investment procurement is achieved through a credit card or cryptocurrency.

The first tenet is currently achievable. Creators have the tools through NFTA to deploy an NFT collection without coding or grappling with the complexities of minting Dapp deployment.

The second tenet is underway, and NFT Apparel development is ongoing. Still, in the future, users can design a collection and sell items in any NFT marketplace for the buyer to redeem the real-world asset or speculate on the scarcity principle from a limited supply.

For the current NFT Wrapping project suite, the third tenet is the most pertinent function of the NFTA Marketplace. As alluded to in previous sections, trading wNFTs containing collateral assets solves several problems; the key of which is underlying collateral through time-lock functions that enables an OTC swap of assets without negatively impacting the market value of those assets.

Trading on an NFT marketplace also offers a crucial secondary function: applying royalty fees.&#x20;

How these fees are utilized is a key point of enquiry for those that procure several assets that are contained by a wNFT. Typically, an arbitrary NFT will apply a secondary market royalty fee whereby most, if not all, of the fees, are collected by projects.&#x20;

These secondary sales tend to take place based on hype, branding, or aesthetics; all of which are characteristics of speculation and encourage ‘FOMO’-like behaviours.

However, with Wrapped NFTs in the current model, a fixed 10% royalty fee is applied, whereby none of it is handed over to founders or a project team. Instead, the royalty fee takes half to reinvest back into the underlying collateral of the wNFT being traded. The remainder is allocated to a liquidity mining contract.&#x20;

The latter is a modifiable proposition and fits the design of the Peak Andromeda Wrapping ecosystem. However, the former is a lucrative proposition for wNFTs owners. The pro-rata growth of the underlying assets is a product of trading volume. The higher the trading volume, the more the collateral base grows pro-rata.&#x20;

When wNFTs are unwrapped, this presents an opportunity for the holder to redeem more collateral pro-rata than what was initially supplied to the wNFT.

Further, having a collateral basis to wNFTs applies a non-speculative value based on the market value of the underlying assets while also coupling it with the speculative value assigned through appraisal of the NFT itself; whether that appraisal is dictated by hype, aesthetic appeal, or brand potential, it is likely that a wNFT is viable to resell at a cost higher than the initial acquisition price.

