Unlocking DeFi Literacy: Understanding NFT Market Microstructure in the Decentralized Finance Landscape

Decentralized finance (DeFi) is an emerging technology that empowers individuals to manage their assets without relying on centralized institutions. This paper examines the nexus between DeFi & the NFT market. It delves into DeFi with concepts like Liquidity Pools & DEXs, while clarifying concepts like fungible tokens & stablecoins within NFT ecosystems. Exploring primary & secondary markets, along with NFT royalty structures, it aims to enhance understanding & empower individuals to navigate these landscapes effectively. This paper delves into the intricate relationship between the NFT market & the broader DeFi landscape, offering practical insights for NFT marketplace owners & in-depth analysis for academic researchers.