## Introduction 
We are thrilled to announce that Upshot will be the inaugural partner/ strategist for [Astaria](https://astaria.xyz/), a new on-chain NFT lending platform. Astaria’s protocol introduces an innovative three-actor-model where strategists, such as Upshot, can outline the terms of NFT loans through dedicated vaults. These vaults accept capital from liquidity providers, which is subsequently lent out to NFT borrowers, enhancing the transparency and efficacy of the NFT lending process. 

By bringing [Upshot’s industry-leading machine learning models](https://upshot.xyz/post/how-upshots-ml-models-work) to Astaria's lending platform, we unlock an innovative frontier in NFT financial markets, ensuring seamless and accessible lending practices. With a proven track record of appraising over 104 million NFTs from a diverse range of over 87,000 collections, our robust quantitative analyses offer unprecedented breadth and accuracy. As Astaria strategists, we employ our sophisticated recovery rate models and risk management framework, not only to gauge the probability of loan default but also to maintain a diversified loan portfolio, protecting both liquidity providers and ourselves from potential market volatility. This collaboration embodies our shared vision of propelling a new era of NFT financialization, where seemingly “illiquid” assets can be leveraged for a new wave of DeFi opportunities. 

## A Very Brief History of NFT Lending Today
Historically, the NFT lending market has primarily operated on a peer-to-peer basis, similar to archaic barter systems. In this model, borrowers and lenders agree on terms and a smart contract handles the transactions trustlessly. This process allows for great flexibility, matching terms on a case-by-case basis. However, the peer-to-peer model inherently requires both parties to reach an agreement on terms, a process often encumbered by a divergence in perceived values and risk factors. Borrowers, often emotionally attached to their NFTs, may overvalue them, while lenders, cautious about the borrower's credibility or the volatility of the collection, might assign a higher risk premium. This mismatch in sentiment often leads to less efficient market-clearing outcomes.

In response to these challenges, the peer-to-pool model has emerged as an alternative option to allow for a smoother user experience by removing the need for individual agreements. Lenders contribute to a pool which manages liquidity, allowing borrowers to access instant liquidity. Despite pooling risks for all liquidity providers, this model offers a more scalable path that closely mirrors the fungible market where LPs can deposit capital and earn. Peer-to-pool models depend heavily on accurate valuation methodologies to set loan terms. Over-reliance on oracle-based price calculation methods (such as floor price) can leave the system vulnerable to manipulation as well as limited in usefulness. 

The alternative to avoid oracle-based manipulation is to use specialized appraisers employing nuanced, machine-learning-based algorithms to estimate NFT value, incorporating factors such as traits, previous owner history, and other relevant data points. This takes us to Astaria's unique approach - the three-actor model.

## Introducing Astaria’s Three-Actor Model
[Astaria](https://astaria.xyz/) is an on-chain NFT lending platform designed with the native DeFi user in mind. The protocol provides a system for strategists, like Upshot, to publish loan NFT terms through vaults, which accepts capital from liquidity providers and extends it to borrowers. For example, one strategist may allow a 10 ETH loan with a 10% interest rate to be taken out against a specific NFT for one month. These terms can be continuously updated as markets fluctuate, and borrowers can refinance to take advantage of more favorable terms.

This unique, three-actor model fosters competitive yields for liquidity providers and instantaneous liquidity for borrowers, all while mitigating the need for traditional, time-consuming bid-and-ask negotiation processes. With a dynamic ecosystem of strategists, borrowers, and liquidity providers, Astaria ensures market competitive rates and flexibility for loan refinancing, without the fear of forced liquidations on price changes.

![Astaria-3-Actor-Model](//images.ctfassets.net/lhkcghnr8ql4/37dWByvTEQMljUMghW73ej/3cf966af4c8ee0d56bbbd10559818102/3AM-ccb5b9d756e22d102d2c5eeba160f03a.png)

Strategists, including Upshot, within Astaria's framework have the responsibility of deploying vaults complete with loan terms matched to supported NFTs. These terms can be dynamically adjusted as market conditions change, creating a lending ecosystem that's highly responsive to real-time fluctuations. All of this contributes to a healthy, competitive balance that ensures fair and accurate terms, striking a balance between attracting borrowers and securing sufficient capital.

### Core Benefits of Astaria 
Astaria has three core benefits for users: 1) instant liquidity, 2) competitive yields and loan terms, and 3) no forced liquidations. Here's a closer look at these benefits:

- __Instant liquidity__: This feature eliminates time-consuming bid-and-ask negotiations, allowing users immediate access to a variety of loan terms offered by expert strategists.
- __Competitive yields and loan terms__: Astaria fosters a competitive environment where strategists compete for capital, ensuring beneficial market rates for both liquidity providers and borrowers.
- __No forced liquidations__: Borrowers are only subject to liquidation if their loan expires with outstanding debt. This eliminates forced liquidations due to market price fluctuations, offering additional security for borrowers amidst market volatility.

#### Benefits for Borrowers 
For borrowers, the Astaria vault system presents a unique combination of flexibility, immediacy, and value. By holding their NFTs as collateral, borrowers gain immediate access to liquidity in an instant and permissionless protocol. This design enables NFT holders to unlock the financial potential of their assets immediately, without the hurdles often associated with traditional peer-to-peer systems. Even as the NFT is locked as collateral, borrowers can still tap into its utility. 

Astaria's FlashActions feature allows temporary unlocking of the NFT to perform predefined actions, such as collecting Uniswap fees or claiming airdrops, all while ensuring the NFT is returned within the same block. Additionally, Astaria enables borrowers to take multiple loans against the same NFT, up to five times, provided the maximum potential debt does not exceed the strategist-set limit. This multifaceted borrowing process, complete with the possibility of refinancing, offers borrowers an unprecedented level of freedom and control over their digital assets.

#### Benefits for Liquidity Providers 
On the other side of the coin, liquidity providers reap significant benefits from participating in Upshot’s vault on Astaria. When they contribute capital to PublicVaults, they receive yield-bearing ERC-4626 VaultTokens, thereby earning interest on their provided funds. This model presents an attractive proposition for liquidity providers, enabling them to earn from their capital while contributing to a DeFi ecosystem. The epoch-based operational system of PublicVaults also provides liquidity providers with a sense of stability, as withdrawals need to be signaled at least one epoch in advance.

### Loan Mechanics on Astaria 
Loan mechanics on the Astaria platform are shaped by the fine-tuned parameters defined by strategists, offering flexibility and precision in the lending process. Here's a quick overview of these parameters:

- __Loan Amount__: The loan amount, denominated in the ERC20 token used by the Vault.
- __Duration__: The loan duration in seconds.
- __Interest Rate__: The interest rate of the loan. All rates on the Astaria protocol are in simple interest and non-compounding.
- __Maximum Potential Debt__: This is the highest possible debt that can be accrued against an NFT considering all existing loans. It's a vital factor when strategizing multiple loans against the same collateral.
- __Liquidation Initial Ask__: The requested starting price of the Dutch auction if the collateral is sent to liquidation. Note that the initial auction price is set by the most senior lien in the lien stack.

These mechanics contribute to the versatility of Astaria's lending platform, allowing users to have diverse and strategic engagement with NFTs. For more in-depth information about these mechanics and how they function within the larger Astaria ecosystem, we encourage you to visit Astaria's loan term [documentation](https://docs.astaria.xyz/docs/protocol-mechanics/loanterms). 

## Upshot’s Vault Management Strategy 
At Upshot, our lending strategy is designed to minimize risk for the lender while maximizing value for the borrower. To accomplish this, we leverage Upshot's industry-leading appraisals, recovery rate models, default probability estimates, and our proprietary risk management framework. This ensemble of models and analyses ensures that our lending strategies provide fair, accurate terms, and a healthy yield, all while mitigating the risk exposure for our liquidity providers and ourselves.

From selecting high-quality NFT collections to considering future collateral value when determining loan amounts, each element of our strategy is tailored to provide optimal benefits for all stakeholders. Borrowers can take advantage of our flexible lending process where our quant team fetches all the loan terms, which are then fed into the Astaria SDK. This system allows us to offer borrowers the most current and relevant lending terms, frequently updated every 30 minutes, and lenders the opportunity to stake in our vault. 

We have also added a "kill-switch" feature that quickly responds to significant market events, further ensuring the protection of our liquidity providers. As we embark on this journey with Astaria, we remain committed to continuously improving and refining our lending strategies, based on market trends and user feedback

### Upshot’s Vault 
Upshot's initial offering will feature one unified vault, presenting several advantages:

- __Simplicity__: A single NFT lending vault simplifies management and operations, making it easier for users to understand the lending process.
- __Greater liquidity__: Consolidating NFTs from various owners increases overall market liquidity, facilitating borrower access and enabling lenders to earn interest.
- __Reduced risk__: Pooling NFTs from multiple owners spreads default risk across a broader pool of borrowers, reducing loss risk for individual lenders in case of a default.

This setup will be reviewed and potentially revised based on user feedback and demand, with plans to launch additional vaults over time to cater to varied risk profiles and lending strategies.

### Supported Collections (As of May 25, 2023) 
As of the initial launch, Upshot will support the following collections as part of our initial vault: 

- Azuki
- BAYC
- Beanz Official
- Chromie Squiggles
- CloneX
- CryptoDickbutts
- Doodles
- MAYC
- Milady
- Moonbirds
- Pudgy Penguins

We look forward to expanding our collection and vault offerings in the coming months.

### Upshot’s Methodology 
Upshot’s strategy embraces "conservative NFT lending," with terms designed to minimize lender risk while still providing value to the borrower. Core elements of our strategy include:

- __Collateral__: Borrowers provide an NFT as collateral for the loan, selected from high-quality collections with a history of stable or appreciating value.
- __Loan amount__: The amount is a function of the future collateral value, less a margin for forecasting uncertainty, offering adequate protection to the lender in case of default.
- __Loan duration__: The duration is based on the highest future recovery value over a 30-day time horizon, ensuring maximum recovery value in the event of a default.
- __Interest rate__: The rate compensates the lender for the risk involved in lending the NFTs, such as default risk and illiquidity risk.
- __Leverage__: Our initial strategy does not permit second or third lien loans.

Please note that this design is flexible, and adjustments will be made based on feedback regarding parameters such as loan amount and interest rate. 

### Our Risk Mitigation Framework
In our commitment to maximize value and mitigate risk for Astaria Vault participants, Upshot utilizes a sophisticated Portfolio Optimization framework, deeply rooted in Modern Portfolio Theory (MPT). MPT emphasizes the power of diversification, aiming to create an optimal asset allocation with superior risk-adjusted returns through careful optimization strategies.

Upshot's approach to portfolio optimization is methodical and data-driven. We begin with a collection's time-series data, utilizing daily floor prices and our in-house generated appraisals to construct robust time series. From these data points, we calculate risk and return approximations, employing different modeling methods such as mean, exponentially weighted average, or machine learning-based algorithms like Auto-regressors and GARCH.

After determining return and risk approximations, we move to portfolio selection. We employ optimization solvers to determine collection weights, thereby constructing a portfolio that meets investors' objectives within set constraints. Upon establishing collection weights, we then proceed with our capital allocation strategy.

Recognizing the limitations of traditional MPT techniques, particularly in the dynamic and sometimes unpredictable NFT market, we've integrated alternative portfolio construction methods. These include minimum spanning tree (MST) and centrality-based methods from Graph Theory, which offer a more nuanced approach to diversification and have shown promising results in terms of out-of-sample performance. This innovative strategy not only ensures that our portfolio is robust against market fluctuations, but it is also highly scalable.

## Conclusion 
This partnership between Upshot and Astaria presents a promising new horizon NFT financialization. To learn more about Upshot and our strategic approach, visit our [website](https://upshot.xyz/). For a closer look at how we're utilizing our robust machine learning capabilities with Astaria's on-chain NFT lending platform, check out our [Astaria-Upshot vault](https://astaria.xyz/lend/vaults/0xe5149d099b992e3dc897f3f4c88824eac2a6a59d). If you're interested in diving deeper into Astaria's protocol or need help navigating the platform, you can find comprehensive guides and helpful details in Astaria's [documentation](https://docs.astaria.xyz/). 

We invite you to embark on this journey with us as we redefine the boundaries of ownership in the world of NFTs. This partnership with Astaria allows individuals to navigate an expansive range of unique use cases for their jpegs, unlocking unprecedented ways of engaging with NFTs. Together, we are transforming the concept of asset ownership, breaking down barriers and bridging the gap between the world of DeFi and NFTs. Join us in this exciting new chapter as we unlock the potential of NFTs like never before by visiting our [vault](https://astaria.xyz/lend/vaults/0xe5149d099b992e3dc897f3f4c88824eac2a6a59d).

Astaria has partnered with Upshot bringing Upshot lending strategies to their platform.

Upshot Unveils Strategic Partnership with Astaria as Inaugural Vault Strategist

Upshot is laying the foundation for the era of NFT financialization.  Our mission is to build tools that combine DeFi x NFTs in novel, powerful ways to create liquid markets for anything. 

To kick-start this journey, we have developed several tools that make it easier for developers to build on top of our platform. These tools include our [ML pricing models](https://upshot.xyz/post/how-upshots-ml-models-work), [API access to those pricing models](https://docs.upshot.xyz/docs), [the gmi wallet-scoring index](https://upshot.xyz/post/introducing-upshot-gmi) and a [marketplace aggregator](https://upshot.xyz/post/upshot-is-now-open-to-the-public).  Additionally, we have more tools like an NFT AMM, indexes, and lending coming soon.

It will take an entire community of developers to usher in the wave of NFT financialization, so we've compiled a list of 23 ideas that developers can create incorporating Upshot’s tools and data.

Whether you're a seasoned developer or just getting started, we hope these ideas get you excited to build the future of NFT financialization. So without further ado, let's dive into the list.

## DeFi x NFT Primitives

At Upshot, we give developers the tools to create more liquid markets for illiquid assets, allowing for more unique and expressive ways to interact with NFTs than simply buying and selling individual tokens. 

In the future, Upshot (and the entrepreneurs who build off our tools) will create markets where users can earn yield from their NFTs, short NFTs, leverage long NFTs, invest in a diverse basket of assets rather than an individual JPEG, and more. 

This section contains a list of financial instruments that already exist in the DeFi/tradfi world and could be built for NFTs using Upshot’s NFT appraisals as the underlying pricing logic. 

### NFT Synthetics

A synthetic asset is an asset that tracks the value of some other asset. 

All you need to create a synthetic asset is a pool of capital and a reliable price feed that updates consistently. Perhaps the most popular example of a synthetic asset is DAI, which is a synthetic asset that tracks the value of the US Dollar.

You could use Upshot’s appraisal feeds to create NFT synthetics for NFTs. Whether it be for a specific NFT, a specific trait, or a constructed basket of NFTs. For example, you could track a basket of clean CryptoDickbutts by using the appraisals of the clean Dickbutts included in the basket. Or, you could create a synthetic that tracks the average appraisal of the Hoodie trait in CryptoPunks.

Something to note is that as long as you have a “pool of capital” backing the synthetic asset, you could create the asset to track a basket of NFTs that you don’t necessarily own – making it different from simply pooling + fractionalization. 

### NFT Perpetuals

An NFT perpetual market is a market for buying and selling derivatives of a non-fungible token with a "perpetual" or indefinite lifespan.

 NFT perpetuals (or “perps”) enable traders to enter leveraged long or short positions in NFTs without the underlying NFTs needing to be involved in the process or held anywhere specifically at all. 

NFT appraisals could be used as the pricing mechanism dictating the value of perps. Similar to the NFT synthetics example above, perpetuals could be created on top of baskets of NFTs or specific traits to allow people to enter more exotic positions like going short on the “Beanie” trait in CryptoPunks.

### NFT Index Fund

Using our NFT appraisals and other novel NFT metrics, you can construct an investable index to track various collections or strategies based on synthetic assets rather than holding the underlying collateral. How you construct the index is up to you as the index provider. 

For instance, you could create an index that tracks the market cap of Punks, BAYC, Doodles, and Dickbutts, of 20 specific handpicked NFTs (even if you don’t own them) or an all-encompassing NFT index fund to give investors the ability to invest in “the growth of NFTs in general” as opposed to buying specific NFTs. 

### NFT-Backed Stablecoin

The first inklings of Defi were built by MakerDAO and the concept of locking collateral (ETH) into a vault and then issuing a collateral-backed stablecoin (DAI) to users. Maker has since expanded the collateral types in their vault to include other ERC-20 tokens, but not (yet) NFTs. 

With a reliable price oracle for NFTs, you could create a MakerDAO-style stablecoin backed by NFTs. You could use Upshot’s Chainlink adapter for bringing NFT appraisals on-chain and use those prices to monitor collateralization, manage liquidations, etc. 

There is more to consider with this idea around actual liquidity on the market because as users’ positions are liquidated, you will need to liquidate those assets on the open-market (which is usually quite illiquid). We have been doing some research here and will be releasing some work around liquidity scores, volatility estimates, and recovery rates soon. These new pieces of data will help but careful thought is still needed to design an NFT-backed stablecoin resistant to the woes of illiquidity.

### More Capital-Efficient NFT AMMs

As of now, NFT AMMs like Sudoswap, simply use a minimum floor price to enable NFT trading. This makes it less desirable for someone to deposit NFTs that are above floor into an AMM.

Using the Upshot Appraisal one could support the trading of more than just floor price by providing quotes and automated liquidity based on appraisals. 

### NFT Betting Platform / Prediction Market

Prediction markets and parimutuel betting markets are a great way to enable traders to “bet on their beliefs” and crowdsource information. 

It’s been difficult to build these for NFTs in the past, as creating a market with parameters like “will Mutant Ape Yacht Club have a floor above 20 ETH on February 21, 2023” can be easily gamed. (Vote “no” and then list a mutant at 19 ETH right before the market closes). 

However, using our ML-based appraisal system, you could instead create markets around the average appraisal price in the collection or other more stable metrics than simply floor price.

### Buy Now Pay Later NFT protocol

Buy Now, Pay Later (BNPL)  has become popular in e-commerce. The idea is similar to a credit card, only it is offered by the retailer where payment is split up into multiple installments. 

A protocol could be built to enable BNPL interactions with NFTs. Not only would such a protocol help buyers to add leverage to their trade, it would also open up the ability for the protocol or seller to earn some extra yield on top of their sale price. 

The terms of these transactions (interest rate, how much collateral is needed etc) could be governed based on the NFT’s appraisal value and the wallet's gmi score. 

## Better Bot Automation
Automating trades, price discovery, and more are key to running high-volume but less labor-intensive trading operations. As of yet, the lack of robust, accurate, and real-time data has limited most bots in the NFT space. 

### NFT Trading Bot

NFT trading bots already exist, but there is a lot of room for improvement. Currently, NFT bots tend to simply send low-ball offers and hope someone bites. If so, the bot then re-lists that NFT at the floor. 

Using Upshot’s appraisal data you could build a smarter (and hopefully far more profitable!) trading bot.  For example, you can build a bot that will buy any Crypto Dick Butt listed for 10% under its appraisal value and re-list at its appraisal value. 

You also often see holders of various NFTs who list their NFTs at floor price, even when they have an extremely rare trait or trait combination. You can leverage Upshot’s appraisals to find these deals and snipe them off the floor. 

### Instant NFT Liquidity Tool (i.e. “OpenDoor” for NFTs)

NFTs don’t provide instant liquidity. This can be frustrating. If you need to cash out quickly, your only option is to list below floor price and wait for someone to buy. If you need to cash out instantly, usually your only option is to accept a bid way below the floor price. 

OpenDoor is the idea of offering sellers instant liquidity, but for a fee. 

For NFTs, someone could create a site or smart contract that offers to buy NFTs at or near their appraisal price and then takes a fee in exchange for offering instant liquidity. 

### Discord or Twitter Bots

A Twitter or Discord bot could notify followers or a channel when a good deal appears, when an NFT with a specific trait gets listed, volume increases substantially, or when smart money is moving in or out of a collection. 

Developers could also build collection/community-specific bots for Discord and Twitter. 

Ex: Members of the BAYC discord could check the appraised value of their BAYC by simply typing, “ /appraise BAYC #192” within discord. 

### Market Maker Bot

With the rise of NFT AMMs like Sudoswap, capital can flow in and out of collections more freely. However, moving this capital about manually can be inefficient. 

A market maker bot could automatically provide liquidity to NFT markets across marketplaces and AMMs based on Upshot’s appraisals and a defined set of rules. 

### Distressed Purchasing Bot (Loan Liquidation Auctions)

When NFT loans get liquidated, the underlying NFTs that were used as collateral are auctioned off. Someone could create a bot that automatically bids at those auctions at or below the appraisal value. 

This would ensure that you could automatically buy distressed assets during a short opportunity window without overpaying. 

## NFT Lending

An improved NFT lending system could utilize two of Upshot’s products: Appraisals and gmi. 

The Upshot appraisals would be used to determine fair collateral terms for the loan. 

Upshot’s gmi index (a novel grading index for NFT wallets to determine the quality of a specific NFT trader) could be used or adapted to function similarly to a credit score in order to identify safe wallets and fair terms for a loan. 

### Peer-to-Peer Lending Decisions

An individual could use upshots data to better evaluate peer-to-peer lending decisions. They could evaluate the counterparty's risk using the gmi score, and decide on the value of the NFT as collateral using Upshot’s appraisal models. 

Similarly, a large capital allocator could create and fund a peer-to-pool lending protocol where liquidation prices are governed automatically by Upshot appraisal values. 

### Peer-to-Pool NFT Lending Protocol

An NFT lending pool, like BendDAO, could enable NFT loans without expiration dates and a more accurate liquidation system than simply floor price. 

By using Upshot Appraisals, mid-tier and grailed NFTs could obtain better loans based on the value of their more coveted NFT rather than the collection’s overall floor price. 

### Renting NFTs

NFTs are often used in play-to-earn blockchain games (Axie Infinity, Decentral Games etc.). These NFTs can be rented to other players or guilds for a period of time so that those who don’t outright own an NFT can still play the game. Also, many IRL events and conferences are gated by NFT access. 

Using Upshot’s appraisal model, a developer could build out an NFT rental market that sets rental prices based on the underlying NFT's appraised value. 

## Analytics, Data, and Media

Sites like Defillama, Nansen and more have created products and dashboards that are highly visited and even have paying subscribers.

Most NFT marketplaces have limited data beyond floor price and volume. Developers, blogs, and influencers could utilize upshots data to create targeted media and analytics tools for their followers. 

### Smart Money Movement Wallet Watcher

Using our alerts system, a community leader or bot could send alerts when wallets with a high gmi are buying NFTs in a certain collection or selling their NFTs from a certain collection. This can be a powerful signal for whether or not the broader community should be moving in or out of specific NFT positions and in what direction a collection’s price might move.

### NFT Deal-finder

A niche site that identifies, filters, and presents NFTs that are mispriced relative to their appraisals could build a “discount marketplace” where traders could go shopping for deals. 

### Wallet Discovery Tool

A list or searchable database of wallets to trade with. 

For example, Upshot has created a number of useful labels for wallets in the NFT space. One of those labels is “Usually accepts bids”. Aggregating those wallets, and their NFTs into one location could help traders make better buying and selling decisions. 

### NFT Smart Collector Airdrop/ Whitelist Tool

A wallet having a high gmi is meant to signify how competent of an NFT trader or collector someone is. It also acts as a useful signal for identifying which collections have strong communities. Collection creators (or token creators) could airdrop NFTs to or whitelist wallets based on their gmi scores. 

This could help a project gain exposure to influencers and whales. 

### Browser Extension to Help Create Accurate Listings and Bids Across Marketplaces

We've seen browser extensions in e-commerce, that will alert you of a lower price on Amazon before you buy at Walmart. Why couldn't that same concept apply to NFTs?

A browser extension that alerts you of the price of an NFT (or general collection stats) across marketplaces could be helpful for users so that they don’t have to visit multiple sites before making a purchase.

## DAOs and Capital Management

NFTs are sometimes the keys to DAO memberships. 

In addition to NFT-driven DAO governance, there are ways to use Upshot’s tools to improve how DAOs and other capital allocators manage their NFT positions.

### Appraisal-Weighted NFT Governance

Sites like Snapshot already let people vote based on their NFT token holdings. However, as of now - that voting system is either binary (1 vote per member) or weighted by quantity (2 tokens = 2 votes). 

A voting system could be developed with influence based on the value of someone’s NFTs instead of the number of NFTs they have. AKA, a grail should have more sway than a floor.

### Valuation Metrics for NFT Funds

NFT investment DAOs often pool many ERC-721 tokens together and then issue ERC-20 tokens to their investors. This is great, but because NFTs are not constantly being traded it is often difficult to determine the net asset value (NAV) backing the fund and therefore difficult to determine ERC-20 token price. 

This problem of valuing NFT holdings isn’t unique to DAOs. Any fund buying NFTs needs a reliable estimate of what their holdings are worth.

One could build a tool for this using Upshot’s appraisals and stand up part of a fund admin function specific for NFT investments.

### NFT investment DAO that Buys NFTs Autonomously

Similar to an individual trader, a DAO could pool together funds and run automated trading strategies based on a set of rules around list price and Upshot valuation metrics. This would make the investment decisions of the DAO faster and more transparent rather than discussing and voting on every trade. 

![Upshot 2023](//images.ctfassets.net/lhkcghnr8ql4/4i1M2xJbSGXpS9GHlO97SU/9bdc1f4e97f2293f5cedc6f83819d567/New__Years2-06.png)

## Conclusion: Building the Future of DeFi x NFT on Upshot

The DeFi x NFT market is picking up steam and will eclipse the DeFi and NFT markets on their own. At Upshot, we’re excited to contribute to and help define this emerging category. We invite developers from around the ecosystem to build on top of some of the tools that we created to help explore the full set of possibilities at the intersection of DeFi and NFTs. 

If anyone in the community is interested in building one of these ideas, or inspired to build one of their own ideas using Upshot, please don’t hesitate to contact us: 

Email: contact@upshot.xyz.
[Twitter](https://twitter.com/upshothq)
[Discord](https://discord.com/invite/upshot) 

We’d be eager to partner and offer support. 

Stay in the loop!

- Access our [NFT Aggregator](https://app.upshot.xyz/)
- Read through our [API Docs](https://docs.upshot.xyz/docs)
- Join us on [Discord](https://discord.com/invite/upshot)
- Follow us on [Twitter](https://twitter.com/upshothq)
- Subscribe to our [newsletter](https://upshot.xyz/) 


Upshot is laying the foundation for the era of NFT financialization and we're excited for you to join us. To ring in the 2023, here are 23 ideas that you could build using Upshot.

23 DeFi x NFT Ideas to Build on Top of Upshot in 2023

Decentralized Autonomous Organizations, or DAOs, have been making waves in the world of finance and investment in recent years. These digital entities are designed to operate on a decentralized blockchain network and are run by smart contracts that automatically execute predefined rules and decisions. 

With the rise of blockchain technology and the [NFT market](https://upshot.xyz/post/nft-markets-are-maturing), and an increasing interest in [decentralized finance (DeFi)](https://www.techtarget.com/whatis/definition/decentralized-finance-DeFi), investment DAOs have emerged as a promising new way to invest in digital assets such as NFT tokens and cryptocurrencies.

This article will take a closer look at investment DAOs and how they work, including the benefits and risks associated with investing in them. We'll also explore some of the most popular investment DAOs currently in operation and provide tips on how to evaluate investment opportunities. 

## What is an Investment DAO?

Investment DAOs are comprised of groups of people who pool their resources together to invest in various digital projects and assets they may not have been able to invest in individually. The decisions on what to invest in are made democratically by members of the DAO, using a voting system that is executed by the smart contract. The rules and guidelines that govern the DAO's investments are also set by the members themselves. 

Unlike traditional investment funds or companies, investment DAOs are completely decentralized—there is no central leadership, and it is governed by the community. It is typically open to anyone who wants to join and become a member. 

### DAOs in the DeFi Space

DAOs and DeFi also share a mutually beneficial working relationship. DeFi, or decentralized finance, is a form of peer-to-peer finance enabled by various Layer-1 blockchain protocols, such as Ethereum, Avalanche, Solana, and Cardano. 

DeFi eliminates the need for intermediaries, such as banks and brokers, and allows users to self-custody their assets in their wallets using their private keys. This increases the speed and lowers the cost of financial transactions, and enhances the transparency of transactions.

Many DeFi applications are built on top of DAO structures. For example, a DeFi protocol that allows users to lend and borrow cryptocurrency can be built on top of a DAO that controls the governance of the protocol, including decision-making around how the protocol will be updated or improved. DAOs can also be used to manage funds for DeFi projects, such as investment funds or liquidity pools.

## How Do Investment DAOs Work?

DAOs function by providing a community-driven approach to investment, with rewards for members and a focus on long-term growth and success.  

All the resources in a DAO are managed by a predefined logic which can be modified by members using a democratic system. The purchase of assets and allocation of resources are designed to be transparent and user-centric. 

Here’s an overview of how they work: 
- __Creation__: An investment DAO is created by a group of individuals who come together to form a decentralized organization. The DAO is created on a blockchain, such as Ethereum, using smart contracts that govern how the DAO operates.
- __Funding__: Members of the DAO pool their resources by contributing cryptocurrency to the DAO's treasury. This provides the DAO with capital that can be used to make investments.
- __Governance__: Members of the DAO have voting rights and can participate in decision-making processes that determine how the DAO's funds are invested. This can include voting on which assets to acquire, when to sell assets, and how to manage the DAO's portfolio.
- __Transparency__: All transactions and decisions made by the DAO are recorded on the blockchain, providing transparency and accountability to members of the DAO and other stakeholders.
- __Rewards__: Depending on the DAO's structure, members may receive rewards for their participation and contributions to the DAO. This can include a share of the profits generated by the DAO's investments, or other incentives such as tokens or other assets.

## What Are Investment DAOs Used For?

Investment DAOs are often designed to invest in digital assets, but they can also be used to  invest in traditional assets such as stocks or real estate.

### NFTs

Collector DAOs are when individuals pool funds to acquire and issue NFTs. For example, [APE DAO](https://t.co/vsgMPHWuEZ) allows for the fractionalization of NFTs so multiple users can own a fraction of the same asset. 

DAOs can also help raise funds and create engaged communities for different NFT projects by allowing people to determine the most profitable projects. Members get to determine the investment direction through token-based voting. DAOs also create incentives and rewards that encourage members to participate. This can support community governance and also help smaller projects or creators develop a dedicated community. 

### Other Crypto Projects

DAOs are not limited to any specific category, and their utility can extend across various use cases, including protocols, philanthropy, publishing, and even social media.

Some notable DAO projects include [AssangeDAO](https://assangedao.org/), which helps in supporting WikiLeaks and its founder by accepting cryptocurrency donations. 

[VitaDAO](https://www.vitadao.com/) supports biotech scientists by investing in longevity research through an IP-NFT, and The LAO is an investment fund that supports the blockchain ecosystem.

### Real Estate

Real estate DAOs create a platform for users to manage the administrative environment of a property,  by tokenizing the asset. Through tokenization, the barrier to entry for real estate investments is lowered and allows investors to purchase fractional ownership of a property. Members can buy stakes in properties for as low as $50. These tokens provide holders with voting rights in decision-making processes, such as repairs and maintenance. 

This process also brings transparency to the siloed market, as all transactions are recorded on a blockchain ledger. Users can also benefit from increased liquidity and lower transaction costs associated with traditional real estate investments. Examples of real estate DAOs include Lofty AI, Arrived Homes, and Vesta Equity.

### Startups

Startups and institutional investors are leveraging DAOs to build a new model for community action on the internet.  Through built-in governance and treasury management features, they allow members to contribute funds in exchange for equity or voting rights without having to go through traditional channels.

Venture capital firms are further exploring new methods to attract more funding and participants into the space. One of these is the use of [hybrid DAO financing models](https://academy.moralis.io/blog/business/why-businesses-should-adopt-a-hybrid-dao-model) that imitate initial coin offerings (ICOs).

## Benefits of Investment DAOs

Investment DAOs offer several advantages over traditional investment funds or companies, including:

### Democratization & Inclusivity 

DAOs provide a platform for individuals from all over the world to come together and pool their resources to make investment decisions. Since DAOs operate on the blockchain, they are accessible to anyone with an internet connection regardless of geographical location or social status. 

### Transparency

DAOs operate transparently on the blockchain, allowing members to track all investment decisions and financial transactions. This transparency ensures that all members have visibility into the DAO's operations, reducing the risk of fraud and mismanagement.

### Lower Fees 

Investment DAOs can offer lower fees than traditional investment vehicles, such as mutual funds or hedge funds. Since DAOs operate on the blockchain, they can eliminate many of the costs associated with traditional investment vehicles, such as administrative fees, fund manager salaries, and middleman fees.

### Risk Diversification 

Investment DAOs allow members to pool their resources and invest in a diversified portfolio of assets, reducing the risk of losses due to the failure of any individual investment. This diversification can help to protect investors from market volatility and ensure a more stable return on investment.

### Liquid Investments 

DAOs can provide investors with access to liquid investments, such as cryptocurrencies or other blockchain-based assets. Since these assets are traded on public exchanges, they can be bought and sold quickly and easily, providing investors with greater flexibility and liquidity.

## Investment DAO Risks

Despite the numerous advantages, investment DAOs also carry some risks. 

- __Smart contracts__: If there are flaws in the smart contract's code, the DAO could be vulnerable to hacking, bugs, or other technical issues.
- __Regulatory risks__: The regulatory environment for DAOs is still uncertain in many jurisdictions. This uncertainty could result in legal or regulatory action that could impact the DAO's operations. 
- __Market risks__: Like any investment vehicle, DAOs are subject to market risks, including volatility, liquidity, and losses. 
- __Reputation risks__: DAOs operate on the blockchain, which means that all transactions and decisions are visible to the public. This can make it more susceptible to attacks from hackers, which can damage reputations and impact a DAO’s ability to attract new members or investments.
- __Fraud__: Some DAOs can be used as an avenue to trick people into fraudulent investments. 

## Investment DAOs to Know in the NFT Space

As NFTs and crypto have become a more mainstream investment opportunity, there are several prominent Investment DAOs to know in the NFT space.

### 1. SquiggleDAO
![squiggle dao logo](//images.ctfassets.net/lhkcghnr8ql4/3HsJ74gZx83cAbhNVsqTc2/124615d73dcedd0b9ddb1abe1a136084/squiggle_dao_logo.png)

[Squiggle DAO](https://www.squiggledao.com/) is a digital art organization focused on collecting, curating, and investing in generative art and NFTs. It seeks to improve users' access to crypto art and NFTs by tokenizing artwork and allowing artists to maintain their ownership of the work while sharing in its rewards. 

Squiggle DAO aims to build a sustainable digital art ecosystem that benefits both artists and collectors. Squiggle NFT serves as the pass to Squiggle DAO, and it currently has a floor price of 12ETH.

Also Read: [The Ultimate Buying Guide for Chromie Squiggles](https://upshot.xyz/post/buying-guide-chromie-squiggles)

### 2. PleasrDAO
![PleasrDAO logo](//images.ctfassets.net/lhkcghnr8ql4/2WjVJYJqv7LOzQYlpli3t5/230c5f20abec6f15ca036ca9b5b35e4f/PleasrDAO_logo.png)

[PleasrDAO](https://pleasr.org/#) is a collective of DeFi leaders, NFT collectors, and digital artists that acquire culturally significant pieces. The DAO's mission is to collect digital art that represents important ideas, movements, and causes. PleasrDAO is experimenting with community and fractional ownership of art, using DeFi to add and disseminate value. The group has also been launching live auctions with notable figures such as Edward Snowden and Daniel Ellsberg.

### 3. Flamingo DAO
![Flaming DAO logo](//images.ctfassets.net/lhkcghnr8ql4/3smEuUOOgmU2XEZLoOzNsX/61c2748d3a477794c404f558ac771623/Flaming_DAO_logo.png)

[Flamingo](https://docs.flamingodao.xyz/) is a DAO exploring investment opportunities for blockchain-based assets. These NFTs include digital art, collectibles, in-game assets, and other tangible assets that help create, monetize, and incentivize online content.  As of 2022, Flamingo’s portfolio included 215 CryptoPunks and 22 Bored Apes, with an estimated value of $1 billion. 

### 4. Bit DAO

[BitDAO](https://www.bitdao.io/) is an open platform for proposals voted on by BIT token holders, supporting the builders of the decentralized economy through pledged contributions, product development, specialized initiatives, R&D labs, and token swaps. It is governed by token holders and focuses on principles of community-driven decision-making and collaboration.

### 5. Davinci DAO

[Davinci DAO](https://davinci.gallery/) is a decentralized autonomous organization that aims to foster creative collaboration and innovation in the arts and cultural sector. It was founded by Misha da Vinci, an experienced web3 leader, and is supported by a community of holders. Davinci DAO provides a platform for community-driven decision-making, funding, and support for artists and creators, with a focus on empowering marginalized groups and promoting diversity and inclusion.

## How to Make Your Own Investment DAO

![portait](//images.ctfassets.net/lhkcghnr8ql4/1AerkBWodRZvqU5WImMUCG/fb37726dd80306c70bf215257fd5a1fb/portait.png)

### 1. Encode & audit a smart contract

Encoding a smart contract:

1. Write the smart contract code using a programming language suitable for smart contracts, such as Solidity.
2. Compile the code into bytecode, which is the low-level code that can be executed on the blockchain.
3. Deploy the bytecode onto the blockchain using a tool like Remix or Truffle.

Auditing a smart contract:

- Review the smart contract code to identify potential security vulnerabilities, such as reentrancy attacks, integer overflows, or unauthorized access.
- Use a tool like MythX or Slither to perform automated security checks on the smart contract code.
- Conduct a manual code review by a team of experienced smart contract developers to identify any potential issues that may have been missed by automated tools.
- Test the smart contract using a testnet or private blockchain to simulate different scenarios and ensure that it functions as expected.
- Have the smart contract audited by an independent third-party auditor who specializes in smart contract security.

### 2. Determine rules of governance

DAOs must identify the key decisions that need to be made and the criteria for making them. This involves determining the roles and responsibilities of token holders, developers, and other community members. Once these roles are defined, the community can create a set of rules and procedures for decision-making, such as a voting system or a proposal process. 

### 3. Use a DAO management platform 

DAO management platforms guide you through the process of creating a DAO in straightforward steps. 

Using these platforms, there's no need to build a smart contract from the ground up. They essentially serve as a bridge between you and the blockchain, allowing you to deploy your DAO without any coding. 

Some of the most frequently used platforms for creating a DAO include:
- [Syndicate](https://syndicate.io/)
- [Colony.io](https://colony.io/)
- [Aragon](https://aragon.org/)

### 4. Incorporate appraisal capabilities 

Appraisal capabilities are crucial for DAOs and other funds investing in NFTs due to the infrequent trading of NFTs, which makes it difficult to determine the net asset value (NAV) of underlying assets and the price of ERC-20 tokens issued to investors. 

To fetch data about the current market price of an asset or the value of a particular index, a DAO can use machine learning models. [Upshot](https://upshot.xyz/post/how-upshots-ml-models-work) provides the easiest alternative to incorporating appraisal capabilities without having to build one from scratch. 

By utilizing Upshot's appraisals, DAOs can establish an accurate estimate of the value of NFT holdings, create a specific fund admin function for NFT investments, and make informed decisions through the purchase of fairly priced assets. This transparency enhances investor confidence and ultimately supports the growth of the NFT market.

### 5. Raise tokens or other funds

There are several ways to raise funds through a DAO, including:

- Initial Coin Offering (ICO)
- Community funding
- Token sales

When a member of the DAO submits a proposal for a new initiative or decision, the proposal is deliberated and voted on. Each token holder is given a certain number of votes that is proportional to the value (ERC-721) or number (ERC-20) of their tokens. 

If the proposal receives a majority of the votes, it’s implemented by the DAO. Proposals may typically include changes to organizational operations, such as hiring employees, developing new projects, or acquiring assets.

## Other Opportunities for Investment DAOs & NFTs

Upshot assists investment DAOs to find the right assets to put their money in. With over 74 million assets from over 67,000 collections appraised and refreshed hourly, Upshot is an Industry-leading NFT appraisals and financial tool for the entire NFTxDeFi space. 

You can leverage Upshot’s cutting-edge technology by: 

- __Deal finding__: Discover the best deals in the NFT market with Upshot's appraisals seamlessly integrated into our NFT aggregator. 
- __Real-time portfolio tracking__: Keep a pulse on the value of your NFT portfolio with our near real-time appraisals, and make adjustments based on the latest market trends.
- __Build smarter trading strategies__: Gain an edge in the market by using Upshot's API. Our appraisals, liquidity analyses, and advanced stats can help you increase your chances of success.
- __Identify and track smart collectors__: Our novel grading index for NFT wallets, known as gmi, helps you identify and track the smartest collectors in the market. Use this information to stay ahead of the competition.

[Get started with Upshot.](https://upshot.xyz/) 

  Learn about the advantages of using NFT Investment DAOs and how they can help you maximize your returns. 


Ultimate Guide to Investment DAOs (For NFTs, Crypto, and More) 

## Introduction
The world of investing has been transformed by the rise of digital assets, and none more so than NFTs. These unique digital assets have captured the imagination of investors around the world, and there is now a growing demand for indexes that can track their performance.

[__Upshot Indexes__](https://app.upshot.xyz/indexes) offer a new approach, providing index methodologies and API endpoints for developers to create index products that track the performance of a basket of NFTs. This allows projects to offer exposure to a broad range of NFTs or specific segments of the market. For example, developers might use Upshot to build an NFT index that tracks the performance of blue-chip NFTs or Yuga Labs NFTs.

## The Basics of NFT Indexes and ETFs
NFT indexes allow investors to track and gain diversified exposure to the world of non-fungible tokens without the need to purchase individual NFTs. These indexes function similarly to traditional indexes by tracking a basket of assets – in this case, NFTs – that meet specific criteria such as rarity, popularity, or historical value. Key benefits of NFT index funds include ease of entry, diversification, reduced time and knowledge requirements, and improved liquidity.

To learn more about the intricacies of NFT index funds and how they compare to traditional index funds, read our in-depth blog post [__here__](https://upshot.xyz/post/introduction-to-nft-index-funds).

### Challenges of Building NFT Indexes
Creating NFT indices presents a unique set of challenges such as limited scope when tracking floor NFTs, pricing complexities, and liquidity and capacity concerns. To learn more about these challenges, please refer to our [__previous blog post__](https://upshot.xyz/post/introduction-to-nft-index-funds) on NFT indexes more generally.

#### Limited Scope When Tracking Floor NFTs
Presently, NFT index funds predominantly focus on tracking the floor prices of NFT collections. However, this approach fails to capture a complete picture of the range of outputs that are in a collection, as some collections contain highly-valuable rare NFTs that are worth significantly more than floor NFTs. Consequently, this limited scope results in an inaccurate representation of the true diversity and value potential of a collection.

#### Pricing Complexities
NFT indices typically weight-adjust their construction based on the floor price the various collections within the index. This does not take into account the collection as a whole, which would require pricing algorithms to better understand the value of the entire collection. Developing sophisticated pricing models for NFTs can be challenging due to the unique characteristics of each asset and the lack of historical data compared to traditional financial assets.

#### Liquidity and Capacity Concerns
NFTs are non-fungible, low-velocity assets. This characteristic poses challenges for NFT indexes in that oftentimes there is not sufficient capacity in the open market to rebalance the portfolio. Moreover, the acquisition and disposal of NFTs can be time-consuming and expensive, potentially hampering the fund's ability to manage its portfolio efficiently and effectively.

## Introducing the Upshot Indexes: Empowering Projects to Create More Expressive NFT Financial Infrastructure
Upshot has constructed a set of NFT index methodologies to enable other projects to build more expressive financial primitives for NFTs with our API. By providing the framework and tools necessary for designing and maintaining NFT indexes, Upshot aims to enhance the accessibility of the NFT space and open up opportunities for more meaningful capital allocations as well as more interesting financial innovations.

Leveraging our quant team’s extensive research and experience in constructing indexes for less liquid financial assets, Upshot's initial set of indexes track core sectors of the NFT space. This initial set of indexes include the Upshot Yuga Index, Upshot Art Blocks Curated Index, and Upshot PFP Index. These methodologies can be used to track the performance of specific segments of the NFT market or the broader market as a whole, with updates available on an hourly cadence.

By equipping index creators with robust and accurate pricing methodologies, Upshot empowers them to overcome common challenges like liquidity constraints, capacity issues, and the accurate valuation of assets within a collection. Through this approach, Upshot facilitates the growth of the NFT index ecosystem, making it more diverse and catering to a wide range of investor preferences and risk appetites.

### Presenting Upshot's Premier NFT Index Methodologies
Upshot is launching three initial index methodologies that cater to various NFT market segments: the Upshot Yuga Index, Upshot Art Blocks Curated Index, and Upshot PFP Index. 

#### Upshot Yuga Index
The methodology behind the Upshot Yuga Index monitors the performance of collections under the Yuga Labs umbrella, weighted by appraisal-based market cap. This methodology captures some of the most liquid NFT collections, enabling developers to offer exposure to verticals such as PFPs, metaverse, generative art, and gaming in a single index. The Upshot Yuga Index includes collections such as Bored Ape Yacht Club, Otherdeed for Otherside, Mutant Ape Yacht Club, CryptoPunks, Meebits and Bored Ape Kennel Club. 

To view more details around the methodology of the Upshot Yuga Index, visit [__here__](https://app.upshot.xyz/indexes/yuga). 

#### Upshot Art Blocks Curated Index 
The methodology behind the Upshot Art Blocks Curated Index tracks the top 20 Art Blocks Curated NFT collections, enabling developers and projects the ability to offer exposure to cutting-edge generative art. This index construction is composed of the following collections: Chromie Squiggle by Snowfro, Fidenza by Tyler Hobbs, Ringers by Dmitri Cherniak, Gazers by Matt Kane, and Archetype by Kjetil Golid among others. 

For more information on the methodology of the Upshot Art Blocks Curated Index, click [__here__](https://app.upshot.xyz/indexes/artblocks-curated).

#### Upshot PFP Index
The methodology behind the Upshot PFP Index tracks the top 20 PFP (profile picture) collections, weighted by appraisal-based market cap. This index represents a significant portion of the NFT space, with many PFP projects driving social identity, community engagement, and network value within the digital realm. The Upshot PFP Index includes collections such as CryptoPunks, Bored Ape Yacht Club, Azuki, Clone X, Pudgy Penguins, and Doodles. 

For more information on the construction of the Upshot PFP Index, click [__here__](https://app.upshot.xyz/indexes/pfp).

## Ways to Use Upshot’s NFT Index Methodologies  
#### Utilizing Upshot's NFT Index API as a Price Oracle for Perpetuals
Upshot's NFT Index API endpoint can be utilized as a powerful price oracle for the creation of NFT perpetuals. Perpetuals are a type of financial derivative that allows traders to take long or short positions on an underlying asset without an expiry date. In the context of NFTs, perpetuals can enable traders to speculate on the future price movements of NFT collections or the overall NFT market without actually owning the underlying NFTs.

The Upshot NFT Index API endpoint provides access to novel index constructions and price feeds that are crucial for calculating the index value and ensuring that the perpetual futures accurately track the performance of the underlying NFT collections. This includes information such as weighting based on appraisal-determined market caps of various NFT collections included in the index. Additionally, the API endpoint allows users to retrieve historical index prices, which can be used to analyze price trends, develop trading strategies, and assess the risk and return characteristics of the NFT market.

By leveraging the Upshot NFT Index API endpoint as a price oracle, creators of NFT perpetual futures can benefit from a robust, reliable, and up-to-date source of pricing information. This not only ensures that the perpetual futures are accurately tracking the performance of the NFT market, but also helps to establish trust and credibility among traders and investors participating in the NFT perpetuals market. 

#### Unlocking Holistic NFT Market Insights for Analysts and Researchers 
Upshot's NFT Index API is a powerful tool that enables analysts, researchers, and media organizations to gain a comprehensive understanding of the NFT market. NFT indexes offer a novel method for analysts to understand the NFT market, as they provide a holistic perspective on the rapidly evolving landscape, moving beyond the limitations of individual collections and enabling a more comprehensive analysis.

By breaking down the NFT market into different segments, such as art, gaming, and PFPs, analysts can identify trends and patterns within each category. Tracking the performance of NFT indexes over time enables the identification of market movements, emerging trends, and potential investment opportunities. Utilizing Upshot’s NFT API, analysts can generate valuable insights by creating in-depth reports, research papers, or news articles, which in turn assist investors, enthusiasts, and the general public in making informed decisions and staying up-to-date on the latest developments in the NFT market.

## Conclusion
The launch of Upshot Indexes marks an exciting new chapter in the rapidly evolving intersection of DeFi and NFTs. As the NFT market continues to mature, we can expect to see more projects leveraging these NFT indexes as a way to offer exposure to this exciting new asset class. By providing developers with robust methodologies and an easy-to-use API endpoint to build with these NFT indexes, Upshot is paving the way for a future where the financialization of NFTs unlocks new investment opportunities and enhances our understanding of this dynamic market. 

To learn more about the technical details of Upshot's offering, we invite you to explore our [__developer API documentation__](https://docs.upshot.xyz/reference). If you're ready to start building your own NFT index products, you can sign up for access to [__our developer portal__](https://developer.upshot.xyz/signin). As NFTs continue to reshape the digital asset landscape, we believe that innovative financial infrastructure, like Upshot Indexes, will play a vital role in driving the development of novel financial primitives. 

Introduction article to Upshot Indexes: A New Era of NFT Exposure.