Roles

Fake World Assets is easiest to read as three roles with different incentives. Depositors provide liquidity by listing positions, purchasers create demand for them, and the protocol captures bounded fees from the places where NFT value, ETH backing, and participant choices diverge.

• Depositors provide liquidity by pairing NFTs with ETH backing to earn an equal share of acquisition fees per active position, the top-deposit reward pot if they hold the crown, and √value FWA rewards. Their risk is that their NFT is selected earlier than its weight-implied average, ending its earning life before fees and rewards have much time to compound, realizing a loss versus the cut they expected.
• Purchasers pay the acquisition price to receive a randomly selected position whose market value can be higher than the price they paid. After allocation, they keep the NFT or accept the depositor bid (in ETH or as FWA); they can also earn purchaser FWA rewards.
• The protocol earns from the spread between the NFT side and the ETH side: the acquisition surcharge, settlement cuts, settlement discounts, and FWA trading fees. It can tune parameters and receive protocol revenue, but it can never touch locked backing or redirect a depositor's earned balance.