[1IP-21] 1inch NFT Marketplace MVP

Author: @Shai_Sand

Simple Summary

This proposal seeks funding of $387,022 to deliver a NFT Marketplace platform to the 1inch Network.

The distribution of funds will start with a partial upfront payment of $92,000 and is further divided into 4 milestones which unlock the rest of the payments.

This product will consist of:

• Aggregated Marketplace (MVP with level-1 analytic tools)
• NFT aggregation from Ethereum, Binance, and Polygon blockchains
• Unique 1inch Marketplace
• Spam/Fake collection filters
• Level I Analytics
• Powertools phase I
• Buy Now
• Bids
• Create a NFT
• Launchpad
• Social/Education
• Empowering the community

Breakdown on the costs for the duration of the project (6 months)

• Product management - $55K
• Design - $40K
• Business development - $30K
• Operation costs - $83.5K
• Corp services - $23.5K
• Dev costs - $155K

Project milestones

1. NFT Aggregator and Analytics: 80 working days
2. Metamask and 1inch Wallet Integration: 20 working days
3. Launchpad: 20 working days
4. Collection Creation
5. Single NFT Creation
6. Admin Panel - Drop Management: 20 working days

Milestone based unlock

We suggest that the grant will be paid based on advanced payment to start the project and contingent payments based on milestones. The success of each milestone is determined by a predefined success factor and will be judged based on a predefined acceptance criteria. We will update the 1inchDAO via forum posts on the progress of each part of our app building journey. Once a milestone is achieved and the acceptance criteria is met, it will unlock the funds needed to start the development of the next milestone

Milestone 1: Project Start

Advanced payment: $92K

Milestone 2: NFT Aggregator and Analytics

Delivered UX:

• UX/UI design for home page
• UX/UI design for search result page
• UX/UI design for the analytics tab of the NFT page
• UX/UI design for the collection page
• UX/UI design for NFT page

Delivered Functionality:

• Search bar where the user can type keywords
• The search bar gives suggestions/hints for user (similar to google search)
• Parsing and storing data for each aggregated collection
• Sorting filters for NFT collection from the drop-down menu

Acceptance Criteria:

• As a user, I will be able to browse and search for NFTs on the marketplace
• As a user, I will be able to search for NFTs by keywords and phrases, so that I can quickly and easily find the specific NFTs I am looking for

Associated unlock: $88K

Milestone 3: MetaMask and 1inch Wallet Integration

Delivered Functionality:

• Integration with 1inch dApp
• Integration with MetaMask
• Pop-up screen that allows user to select which wallet to connect

Acceptance Criteria:

• As a user, I will be able to securely connect my 1inch or MetaMask wallet to the marketplace to make transactions and manage my NFTs and cryptocurrency holdings.

Associated unlock: $80K

Flowchart for milestone 2&3

Milestone 4: Launchpad

Delivered Functionality:

• Create a Collectible
• Create a Collection

Acceptance Criteria:

• As a user, I will be able to choose which network I want to create my NFT and Once I submit all needed details and my wallet is confirmed the NFT details will be stored on the smart contracts.
• As a user, I will be able to create a collection, by entering the following details:
• Title of the collection
• Description
• Logo
• Featured Image
• Banner Image
• URL
• Description
• Category
• Royalty percentage
• Payout Wallet address
• Total Supply
• Choose Blockchain

Associated unlock: $70K

Milestone 5: Drop Management

Delivered Functionality:

• Launch your NFT projects with our optimized drop mechanisms

Acceptance Criteria:

• As a NFT collection owner, I will be able to use NFT drops to promote my project and reward the community
• As a NFT collection owner, I will be able to create timed drops, airdrops, and loot boxes

Associated unlock: $57,022

Abstract

NFTs have evolved from being simple registries on blockchains to various types based on the case. The NFT market is expected to reach more than $232 billion by 2031.

We are looking to provide the community with an intuitive user experience for creating, collecting, and selling NFTs while empowering the user with the best-in-class power tools to make the best decision in every step of the journey.

The Marketplace will be unique from competitors by designing a cutting-edge NFT aggregator marketplace with optimized UI/UX to attract NFT/crypto traders to onboard to the platform and take action.

Moreover, the 1inch community will benefit as the Marketplace will provide users with empowering analytics & browsing tools and educational content, for guiding and educating users.

We would like to request the 1inchDAO a total of $387,022 for creating an MVP of the NFT marketplace

Motivation

1inch is currently the leading decentralized aggregator and has earned a reputation for providing the best prices on token swaps. With the boom in the NFT market, there is a new product segment which 1inch is perfectly positioned to capitalize on - the NFT aggregator marketplace.

Overall, the rise of the NFT market can be attributed to a combination of factors, including the increasing adoption of blockchain technology, the growth of the digital art market, and the availability of online marketplaces that facilitate the buying and selling of NFTs.

Looking at the market potential we can see that even throughout the current bear market the volume of transactions is still growing and specifically the aggregated marketplaces (e.g. Gem and Genie) are taking leading market share

Moreover, looking at current trends we can see that Dec 2022 is showing an improvement in total sales of NFT with market volume of nearly $2B

By implementing this proposal, 1inchDAO will expand its services and revenue channels, onboard new users to 1inch network, and add additional utilities to 1inch token

Specification

The proposed marketplace will have the following features

• Connect Wallet
• 1inch wallet integration (1inch Token)
• MetaMask integration (Ethereum, Binance, Polygon)
• NFT Aggregate API Integration
• NFT aggregation from Ethereum, Binance, and Polygon marketplaces
• Buy Now
• Users can purchase NFTs with any token in one transaction on 1inch marketplace using the 1inch wallet
• Bids
• Users can place bids for the tokens based on their interests. They will enter the details such as the bid amount, and wallet. These bids will be stored on smart contracts and sent to the creators or sellers.
• Sellers will be able to accept bids from the users based on the amount and preferences.
• Based on the bids, sellers can sell the tokens on the platform. Once the seller accepts the bid, the amount from the buyer’s wallet will be transferred to the seller's wallet. The transactions and ownership details will be recorded on the blockchain.
• Search/Filters
• Advance search engine with user recommendations based on NFT collection volume and spam/fake collection check (e.g., When you type the name of the collection, it gives you results that are filtered by daily volume, highest volume on top, and gives priority to the collections that have verified checkmark)
• Rarity rankings, sort by rarity, sort by specific traits, sort by price
• My Watchlist
• Create custom feeds to watch your favorite collections
• Whale/Influencers wallets watchlists/alerts
• Wallets leaderboard
• Get instant alerts sent to your browser, Telegram, or Discord
• NFT Calendar
• Upcoming drops / Free mints / Stealth mints / Blockchain real-time scan
• Add any collection with token address
• Suggested NFT
• AI powered “Matching” game or “You may also like” suggestions for NFT
• Create a single NFT
• The creators must also choose on what network (Ethereum, Binance, and Polygon) they want to create their NFT
• Launchpad
• Create and launch NFT collections (Ethereum, Binance, and Polygon)
• Share
• Users will be able to share the collectible with their social media accounts such as Facebook, Twitter, and Telegram
• Basic Analytics
• Get live floor prices, volume, and sales data on any collection, wallet, or mint
• Deep dive into sales history, floor price, volume, and trends. Detailed live and historical charts help you find the perfect entry and exit
• Access to metrics such as the moving averages over the last sales, profits and losses, and many other insights
• Unique holders and numbers of transactions
• Power tools
• Twitter sentiment score
• AI algorithm that fetch Twitter data and assigns score to each collection based on sentiment used in tweets
• Calculated “true” floor price for each collection
• AI algorithm that fetch social media data and NFT sales data, volume, historical and current listings, and assigns calculated "true" floor price for each collection
• List of top tweets
• Metrics such as assets purchased below current floor, assets never sold since mint, etc.
• Trends on Twitter Profile Picture

Revenue from NFT Marketplace: All the service fees for transactions and listing of the NFT Marketplace during the MVP phase will go to 1inchDAO treasury. Additional discussion about revenue allocation as the NFT Marketplace will evolve from the MVP phase will be discussed in due time

Receiving address for funds distribution

eth: 0x27D2044A1a46FAbBC1071d8F74fDbF6a9dbFb4ae

Potential Revenue channels (conservative projection) and yearly estimated revenue

Additional benefits to the 1inch network

1. Increase in 1inch user base
2. Increase in # of wallet downloads
3. Footprint in the NFT space

Rationale

The rationale for this proposal is in two folds. First, creating a new revenue channel for 1inch by joining the NFT market which presents a market cap of $11.3 billion and with a predicted compound annual growth rate of 33.7% in the following eight years NFT space will see its total market cap climb to $231 billion by 2030.

Second, with 1inch protocols and network we can offer the users the best UX for trading NFTs at the lowest transaction cost which will position 1inch at the top tier for NFT trading.

This proposal aims to develop a leading NFT aggregator marketplace with the best-in-class power tools and analytical and educational features. Competitors and business analysis have been performed to define key features of the proposed 1inch NFT marketplace.

Based on research, the business gaps in the NFT marketplace field are:

1. Most marketplaces are not focused on giving users intuitive analytical tools to make data-driven decisions.
2. There are several websites for NFT analysis. Most of them have free tools and paid tools.
3. Users are forced to pay a monthly fee to use power tools or switch between different websites to perform analysis.
4. Most marketplaces provide a basic browsing experience.
5. Most competitors offer users minimal education and guidance.

The key features that will place 1inch NFT Marketplace at the leading position are:

1. Buy now – users can use ANY token to purchase NFTs in one transaction on the 1inch marketplace.
2. Unique and intuitive UX/UI aligned with 1inch design brand.
3. Educational/ empowering tools to help users make the right decision.
4. Developing an eCommerce community around the marketplace to drive traffic and increase the 1inch user base.

Considerations

The proposed NFT marketplace is going to have three levels of security: server, application, and smart contract.

SERVER SECURITY:

• CIS: CIS benchmarks are internationally recognized as security standards for defending IT systems and data against cyberattacks.

• PCI DSS: The Payment Card Industry Data Security Standard (PCI DSS) is a widely accepted set of policies and procedures intended to optimize the security of users personal information

• AWS BEST PRACTICES: This is a standard set of compliances provided by AWS for best security practices.

APPLICATION SECURITY:

• User Keys storage is encrypted. Thus, avoiding exposable data.

• Use of SSL to prevent data injection.

• CSRF (Cross Site Request Forgery) handling

• XSS (Cross Site Scripting)

• CAPTCHA (if needed)

• Avoiding Direct DOM access

• SSR (Server-side rendering)

• SNYK Package (Used for best practices to monitor vulnerabilities).

SMART CONTRACT SECURITY:

• SLITHER TEST: Slither is a Solidity static analysis framework written in Python 3. It runs a suite of vulnerability detectors, prints visual information about contract details, and provides an API to easily write custom analyses. Slither enables developers to find vulnerabilities, enhance their code comprehension, and quickly prototype custom analyses.

• CHAI TESTING FRAMEWORK

• OPENZEPPELIN TEST HELPDESK

• DEVELOPMENT & TESTING USING HARDHAT

• VULNERABILITY TESTS USING ECHIDNA FUSSY TEST TOOL

• SECURITY ANALYSIS USING MYTHRIL AUDIT TOOL

• REENTRANCY ATTACK PREVENTION USING OPENZEPPELIN LOG AUDIT

Additionally, CERTIK audit services will be used for both smart contract audit and application audit.

Vendor support:

Dev services will be outsourced to Blockchain App Factory (BAF). Blockchain App Factory (BAF) will take lead on the development execution of the proposed NFT marketplace with alignment with 1inch architecture and BE team. BAF has been a Web3 industry leader for years with a team of more than 500 employees, including 100+ experienced blockchain developers. They have launched over 200 innovative Web3 business applications for clients across the globe.

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Information regarding Vendor team skills and Ongoing operational costs post development can be seen in the original forum post.

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Final approval for features delivered under this proposal for the NFT Marketplace will be by the 1inch DAO