The following is strictly meant to be a guide in assisting with finding the right price for a YDF NFT. The value of a listed NFT or prospectively owned NFT is entirely up to the buyer or seller. This guide will hopefully serve as part of the research into price discovery.
Buying / Selling YDF NFTs
When it comes to buying or selling a YDF NFT, there are several things to consider, such as: Earning per Annum, Staked Principal, Unlock Time Remaining, Unclaimed Yield, and of course, the List Price.
You may notice that APR was not mentioned in the above list and that is because an NFT's listed APR is only relevant for the original owner's principal balance. When someone buys a YDF NFT, the APR for the buyer is not the original APR of the NFT. Instead, the APR will be based on the buyer's investment into the NFT, that being the list price and the earning per annum of the NFT via the following math formula.
(Earning Per Annum / List Price) * 100 = APR
Using previously listed ETH NFT #803 as an example:
Annual Earning / APR
The above NFT may be a 200% APR, however, the buyer of this NFT paid its list price of $1,800, and that $1,800 became the buyer's personal principal investment. As it is earning $1,573 annually, the buyer's personal investment APR becomes 87.4% ( (1573/1800) * 100).
Given that the maximum APR a holder can obtain for single sided staking is currently 35%, the list price of NFT #803 means the buyer is getting a 52.4% higher APR on their investment than what they could have if they staked this same principal amount at the maximum available APR, which made this an ideal buy.
This general logic of exchanging NFTs that would result in a higher APR than the current available APRs should be the foundation for both buying and selling a YDF NFT.
Staked Principal / Time Remaining
As this NFT is earning a higher APR than what can be obtained by staking through traditional means, the buyer would never want to unstake the NFT to have the principal balance returned.
Continuing with the above example, the principal amount staked is only $787, whereas the buyer purchased the NFT for $1,800, therefore, unstaking the NFT would only return 43.7% of the buyer's personal principal.
Rather than unstaking the NFT, it would be more beneficial to re-list the NFT and keep their personal principal of $1,800 in mind. Setting a list price of say $2,000, any potential new buyer would receive this NFT at a 78.65% APR on their investment and the seller would see a profit of $200 on their original principal balance, thus, benefitting both the buyer and seller in this scenario.
Yield generated from a YDF NFT can be claimed once every 7 days to begin vesting over a 90 day period. When YDF is staked and a new NFT is created for its owner, the owner must wait this initial 7 days before claiming and vesting their first yield.
If a listed NFT has unclaimed yield, the buyer can immediately claim this yield to begin vesting. As this is yield that the buyer would not normally have due to having to wait the initial 7 days, this unclaimed yield should be considered as added value to the NFT and taken into consideration in the listing price.
To reiterate, the main goal of buying an NFT is to purchase an NFT that will generate a higher APR on your principal amount than what can be obtained if the same principal amount was staked at the current APR options.
Relatively speaking, a list price that will fetch the potential buyer anything above the current maximum APRs (35% / 50%) would be considered reasonable. That being said, the higher the APR that any potential buyer can obtain, the more attractive the NFT will be, which can speed up the buying or selling of the NFT.
All prices shown in the NFT marketplace are converted to USD based on the current market value of the asset, be it the YDF staked value and annual earnings or the value of ETH / WETH.
An NFT's value ratio can vary greatly depending on current market conditions. As the market value of YDF increases, the earning per annum of an NFT will also increase, however, if an NFT's owner does not update the list price of their NFT in accordance with the updated market price of YDF, then any potential buyer can swoop in and purchase an NFT that will fetch them a higher APR on their new investment.
Again using the above NFT that is earning $1,573 annually; if the market value of YDF increases by 30%, this NFT would then be yielding roughly $2,000 annually. If the owner does not change it's list price from $1,800, then a potential buyer would have an even greater APR of about 110% on their investment, which may very well be the deciding factor for those looking to purchase a YDF NFT.
It is this type of gamification that we greatly look forward to during the bull market.