Publishing a dataset amounts to an Initial Data Offering (IDO). It can be data that the user has rights to, or open data with value-added.
Upon publishing a dataset, it becomes a data asset with its own ERC20 datatoken.
The publisher can set a fixed price, or let price be auto-discovered. Ocean Market supports the latter with an Automated Market Maker (AMM) powered by Balancer, deployed in a gas-efficient manner.
Anyone can stake OCEAN in a datatoken AMM pool. Stakers are liquidity providers [ref]. Stakers are also curators, as the amount of stake is a proxy to dataset quality.
Earn by staking, selling data, or building & launching your own marketplace. Stakers earn a cut of the transaction fee proportional to their stake. Sellers get the bulk of sales revenue when a dataset is sold. Running a marketplace takes a % of every dataset sold in the marketplace. Here are details.
Automated price discovery. A given data asset's AMM pool holds both OCEAN and the datatoken as liquidity. Price is based on the ratio of OCEAN tokens versus datatokens in the pool. If datatokens are sold, then more OCEAN enters and datatokens leave, so datatoken price goes up. If more datatokens enter or OCEAN leaves, then datatoken price goes down.
Interoperability. Ocean-powered markets publish, buy, sell, and consume datatokens, which are ERC20. Therefore you can publish a datatoken in Ocean Market, store it in Metamask, transfer it to a DAO, and perform other DeFi operations.
Money legos x datatokens = data legos.
Privacy-preserving. Ocean Compute-to-Data allows private data to be bought & sold while preserving control and privacy of the data.
Universal login via your Web3 wallet. No further password or accout management needed.
How It Works
Ocean-powered data markets combine the building blocks of ERC20 datatokens, OCEAN-datatoken AMM pools, and Compute-to-Data for earning opportunities, automated price discovery, interoperability, privacy, and more.
On AMM Pools
Earning / Fees
Action: Publish Dataset
Action: Stake or Unstake
Action: Discovery
Action: Buy or Sell Dataset
Action: Consume Dataset
On Pricing Data
An Automated Market Maker (AMM) pool is a robot that’s always ready to buy or sell. An AMM is a pool holding two assets, let’s say TOK1 and TOK2 tokens. Anyone can add TOK1 or TOK2 tokens to this pool. If you buy TOK1 tokens from the pool, its price (in terms of TOK2) is the based on the ratio of # TOK1 : # TOK2 tokens. And, vice versa for buying TOK2.
AMMs are the heart of modern decentralized exchanges (DEXes) like Balancer and Uniswap.
Ocean Market makes it easy to create an OCEAN-datatoken AMM pool (powered by Balancer), and to buy and sell datatokens for OCEAN. As datatokens are bought and sold, the price is auto-adjusted as a function of the # datatokens in the pool and the # OCEAN in the pool.
Staking into AMMs has the risk of Impermanent Loss (IL). IL happens whenever the ratio of (# TOK1) : (# TOK2) in the pool diverges from when you initially staked.
It also has the risk of rug pulls, which in datatoken pools is typically when the publisher pulls out their stake as OCEAN.
This post elaborates on the risks in IL and rug pulls for OCEAN-datatoken pools.
To learn more about AMM pools more generally, here's documentation from Balancer and from Uniswap.