Fair Market Pricing on HootDex
The WTFM (What is The Fair Market) pricing model employed by HootDex is a transparent and reliable approach to pricing digital assets on the platform. It encompasses several key factors that contribute to the fair market pricing of various assets, including Digital Basket Tokens (DBTs), CryptoPairs, and SynthCryptos.
Here’s a breakdown of how the WTFM pricing model works:
Ω Digital Basket Tokens (DBTs)
DBTs are designed to represent a basket of digital assets. The pricing for DBTs is determined based on the underlying value of the assets within the basket and the supply of tokens issued at the inception of the DBT. The supply of tokens is automatically placed in circulation, and the pricing of the underlying assets is a composite of real-time global pricing. Importantly, liquidity pools on HootDex for DBTs do not influence the pricing of DBTs, ensuring transparency and guarding against market manipulation. This model seeks to answer the question, “What is the fair market price?” by providing a pricing structure that is free from manipulation.
Ω CryptoPairs
The pricing for CryptoPairs are derived from a composite of global pricing for the underlying digital assets it represents. This approach ensures that members have access to a wide range of digital assets, and the pricing reflects the fair market value. Similar to DBTs, CryptoPairs are designed so that liquidity pools do not impact their pricing, maintaining fairness and transparency.
Ω SynthCryptos
The pricing of SynthCryptos is based on a composite of global pricing for the underlying digital asset they represent. This pricing model enables traders to engage in swift transactions while ensuring that the pricing adheres to the fair market price model, WTFM, that is used on HootDex.
