The Logical Mechanism Marketplace Guide

A guide to using the marketplace.

Using the Marketplace

Native tokens on Cardano are all on equal footing with ADA which means anything that can be tokenized on the Cardano blockchain can be traded just like ADA. A user can mint a token and that token, via smart contracts, can be traded immediately on the marketplace for any user holding that token.

This marketplace is more than just a simple token swap. The marketplace is designed to be an all-in-one solution for the decentralized trading of user-made tokens. It serves as an easy entry for beginning NFT users, providing a platform for low-floor-high-ceiling NFT markets. A truly global marketplace without gatekeeping. Though the marketplace does not focus solely on beginners. Any user coming from the many exampleSwap clones will feel at home while using the marketplace due to the simplicity of design combined with the great flexibility and customization Cardano brings to the industry.

The marketplace is supposed to be simple, easy to use, and logical.

• The marketplace assumes the user has a web3-style Cardano wallet and functional smart contracts. Both do not exist at this time.

General Use

Users will link their wallets to the marketplace allowing them to create and complete orders on the blockchain. If a user mints a token, they can add the token to the marketplace by using the add token button located in the top right corner of the page.

The entire marketplace is open-source and based on smart contracts written in Plutus.

Viewing Open Orders

• Viewing Orders will be updated.

The default view is having every open order organized into a grid. The default marketplace view shows every open order but the size is easily reducible because it is searchable, filterable, and orderable by any general token type.

Inside each order in the grid is a detailed token information window, containing meta and asset data, and an order completion form. These can be seen by clicking the order button. Upon clicking, a detailed information window will come into view. The detailed view can be dismissed by clicking outside the window.

Advanced Token Filtering

The table will have advanced filtering behavior like auto-generating beautiful image layouts for digital art or real-estate, playing clips of music or videos, or displaying event information for concerts or games. The table has to be dynamic such that each token gets a custom layout when viewed in the marketplace. This is done by a combination of metadata and user input when adding the token to the registry.

Creating a New Order

A user will select a coin from their wallet that is swappable on the market and will set the price to sell. Using a smart contract, the token will be locked until an additional user is interested in buying the token. If no user can be found then the tokens are returned to the original user after some predefined amount of time else the token swap will occur between the two users.

Some tokens will not be order-based and because they are more related to a currency than an NFT. This is where the Uniswap like contracts, using an automated market, will come into play. Users will be able to swap tokens and sell NFTs on the same platform.

What if I Don't Know the Price?

Some tokens offer oracles for their price while some tokens are regulated by fully automated markets. Other tokens are priced by the seller, requiring auctions or constant values. There are many ways to price a token and doing research on which is best is always key. Remember that once a smart contract has started it can not be stopped. So, incorrectly pricing a token will result in an incorrect trade.

• Smart contract functionality does not exist.

Complete Orders

Every open order has the complete order button located in the detailed information modal. This button will allow a user to interact with a live token swap smart contract to complete the transaction. After a successful token swap, the new wallet balance will be shown within the wallet link modal.

To ensure security and safety, users will have to do a secondary confirmation for token swaps after clicking the complete order button.

• Smart contract functionality does not exist.

Add Token

A user can add any token to the marketplace by entering the policy id, token name, and symbol into the add token form. If the token passes the proof test then the token will be added to the registry. When a token is in the registry it becomes swappable in the marketplace.

The entry into the marketplace has a very low-floor such that anyone will have the chance to sell something they created on the blockchain. This has the potential for spam because many tokens can have the same token name and symbol but due to the uniqueness of the policy ID hash, tokens can be proved to be unique. This means a malicious user can never truly create a fraudulent version of your token.

In the future, wallets that add tokens will have the ability to edit their token information in the registry.

How is a Token Added?

The proof tests if the concatenation of the policy ID and the hex value of the token name exists within the token database used by Blockfrost. If the token can not be found it either does not exist or not enough time has passed after minting. The third-party API requirement can be lifted by allowing a passive node to run in the background of the webserver for the marketplace such that the blockchain's transaction history can be queried in real-time. Blockfrost is used for simplicity.

Symbol Selection

A token symbol within the market is not unique. The symbol is currently restricted to 8 characters but it does allow emojis. When swapping tokens always be sure to validate the policyID+hex(token name) for authenticity inside the detailed information modal and do not rely on the token symbol alone.

Wallet Link

The marketplace requires a web3-style wallet integration for seamless swaps and smart contract interaction.

Daedalus

Daedalus instructions will go here.

Yoroi

Yoroi instructions will go here.

• Web3-style wallet authentication does not exist.