August 16, 2019, 8:34PM EDT
• 12 min read
ttcX: Applying the Top Trading Cycle algorithm to NFT exchange
- A result of both deficient market structure and the nature of nascent assets involved, the illiquid state of the NFT market results in poor allocative efficiency.
- This paper introduces the concept of the Top Trading Cycle algorithm as it relates to NFTs, providing a more efficient means of exchanging goods between participants with distinct subjective valuations.
- Although the Top Trading Cycle explicitly avoids use of a common medium of exchange, it can nevertheless be leveraged to surface a relative value rank among non-obviously priced assets.