Positions & weighting

An NFT position is a listed NFT paired with committed ETH backing, locked together by a depositor, much like a Uniswap V2 pair. That backing does three jobs at once: it funds the depositor's standing bid to reacquire the NFT (the amount a purchaser receives if they sell it back instead of keeping it), it sets the selection weight (more backing, selected less often), and it's the depositor's stake, returned when the position is allocated or withdrawn. It is the depositor's own capital, not a reward paid out alongside the NFT.

Every position's backing is held separately and only ever settles for that position¹. The contract never pools backing, never lends it out, and never spends one position's ETH on another. So the pool is always fully funded, every standing bid is fully funded by its own depositor, and any position that hasn't been allocated can be withdrawn by its depositor at any time.

A position's selection weight is inversely proportional to its committed backing². Pair an NFT with more ETH and it's selected less often; pair it with less and it's selected more. An acquisition selects a position with a chance proportional to its weight. Because the bid is fully funded, a depositor can't raise a position's weight without putting corresponding ETH at risk.

• Lightly-backed positions are common. You usually receive something small.
• The highest-backed positions are the rarest. A richly-backed NFT is selected rarely, so it tends to sit in the pool a long time.

This one relationship shapes the acquisition price, decides how long positions survive, and is why a separate incentive for large deposits (the top deposit reward) exists at all.