CollectionBet Protocol

About the Protocol

CollectionBet is a peer-to-peer marketplace that allows traders to buy and sell NFTs with future settlement. The protocol enables users to take long or short positions on NFT collections.

Key features include:

• Bullish traders can place buy orders for future NFT purchases at a discount
• Bearish traders can place sell orders to potentially profit from price decreases
• Uses EIP-712 for secure off-chain order creation
• Peer-to-peer trading without intermediaries

How it works:

1. Bullish traders (Bulls):

   • Place buy orders for any NFT from a specific collection
   • Pay a settlement price (usually discounted from the current floor price)
   • Receive an NFT from the collection before the settlement deadline

2. Bearish traders (Bears):

   • Place sell orders for any NFT from a specific collection
   • Pay a security deposit (premium)
   • Agree to sell an NFT at a predetermined price before the deadline
   • Profit if the collection's floor price decreases
   • Lose their security deposit if they fail to deliver the NFT

3. Off-chain Orders:

   • Users can create off-chain orders using the EIP-712 standard

CollectionBet provides a unique way for traders to speculate on NFT collection prices, offering opportunities for both bullish and bearish market participants.

Foundry Test

To set up and run tests for CollectionBet:

1. Follow the instructions to install Foundry.
2. Clone and install dependencies: git submodule update --init --recursive
3. Run the tests: forge test -vv --match-test test_OrderMatchsWithSufficientWETHBalance --match-contract CollectionBet

Note: Change the contract and function name to test different parts of the protocol.