How trades are matched?

Trades exist such as a combination of taker/order and bid/ask. Hence, there are four primary orders:

• MakerBid — a passive order that exists off-chain where the user wishes to acquire an NFT using a specific ERC-20 token.

• MakerAsk — a passive order that exists off-chain where the user wishes to sell an NFT for a specific ERC-20 token.

• TakerBid — an order that is executed on-chain that matches the MakerAsk, e.g., the taker accepts the offer from the maker and buys the NFT for the ERC-20 token specified.

• TakerAsk — an order that is executed on-chain that matches the Maker Bid, e.g., the taker execution strategies allow custom implementation of a set of rules that can be added over time. The execution strategy is defined by the Makerorder, through the use of a field named strategy, which represents a contract that specifies how the trade is going to be executed.

Each strategy consists of a contract that takes two order inputs (Maker Ask w/ Taker Bid or Maker Bid w/ Taker Ask) and returns a 3-tuple:

1. Whether the taker can be executed against the maker.

2. The tokenID is being transacted.

3. The number of tokens transferred

LooksRare's execution strategy design can allow innovative order types, such as:

• Collection orders; a MakerBid can be executable against any TakerAsk within a designated collection

• Trait-based orders (pending implementation) through the use of cryptographic proofs