Buy¶

TL;DR

Loophole maintains an Open Bid per collection anyone can sell into, priced in $LOOP. Since all other marketplaces price in ETH, the fluctuating exchange rate creates a buy-side arbitrage opportunity.

How It Works¶

Presale Deposits ($LOOP) ──┬── 2% RUN Swap Fees ($LOOP)
                          │
                          ▼
                       Open Bid
                          │
                          ▼
          Standing Offer ──→ Accepts NFT ──→ Vault Queue
                          │
                          │  Growth: Balance accumulates → bid increases along fixed checkpoints
                          │  Reset:  After each purchase → reverts to previous checkpoint

Open Bid¶

Loophole maintains a perpetual standing bid (the Open Bid) for NFTs from each supported collection.
The Open Bid is priced in $LOOP, while NFT marketplaces predominantly price in ETH. This currency mismatch creates the buy-side arbitrage surface: the fluctuating ETH/$LOOP exchange rate means the Open Bid's effective ETH value constantly shifts relative to external floor prices.

The Open Bid grows along a fixed series of checkpoints as swap fees accumulate in the acquisition pool. Checkpoints enforce linear increases, preventing the bid from spiking if a sudden surge of trading volume floods the pool. When an NFT is purchased, the bid resets to a previous checkpoint and begins accumulating again.

Anyone holding an NFT from a supported collection can sell it to the protocol by accepting that collection's Open Bid. The NFT enters the vault queue and waits for its Dutch auction.

Example¶

The $PUDGYRUN Open Bid accumulates to 600 $LOOP.
At a $LOOP price of 0.01 ETH, that bid is worth 6 ETH equivalent.
The Pudgy Penguins floor on OpenSea sits at 5 ETH.
An NFT trader buys a Pudgy on OpenSea for 5 ETH and sells it to the protocol for 600 $LOOP.
Converting back through the $LOOP↔ETH pool (2% swap fee): 600 $LOOP × 0.98 × 0.01 = 5.88 ETH.
Net profit: 5.88 − 5 = 0.88 ETH. The Pudgy enters the vault.