What is SudoSwap? | The Next Generation NFT Marketplace With No Royalties
The NFT ecosystem has relied on centralized marketplaces, most prominently OpenSea, for its entire existence. Now, decentralized alternative Sudoswap is gaining traction — fast.
What is SudoSwap?
Sudoswap aims to shake up NFT trading with automated market-making (AMM) algorithms and liquidity pools, echoing premiere Ethereum decentralized exchange (DEX) Uniswap.
Poor liquidity and slippage have long plagued NFT markets. A CryptoPunk might sell for $100,000 on one day but not garner similar offers for weeks or months — leaving investors confused over exactly how much it’s worth.
With its brand of AMM, Sudoswap allows NFT traders to buy and sell without waiting for an offer. Sellers contribute their crypto as liquidity to facilitate smoother automated trades, with orders settling with the pool rather than individually.
Although it was just launched at the beginning of July 2022, the project has received a lot of attention from the community, in mid-August, the number of users and transaction fees collected from the platform increased significantly. transaction volume reached 1,200 ETH (about 2 million USD). The total trading volume currently reaches 24 million USD.
What is the unique selling point?
1. Sudoswap is on-chain.
We touched on this earlier, but let’s flesh out the implications. What’s remarkable about this benefit is that anyone can create a website and display NFTs listed on the crypto exchange. And in doing so, they promote further decentralization. (If the marketplace goes down, there will always be other proxy websites you can access. Therefore, the marketplace is never truly “down.”)
Living on-chain also facilitates participation by on-chain collectives, including DAOs and multisig groups. Finally, an on-chain marketplace is less subject to censorship, a vital principle among many blockchain adherents.
2. Users are subjected to minimal fees.
Sudoswap charges a fee of only 0.5%, which is routed to the Sudo treasury. (You can check the treasury wallet here.) Users can also execute bulk purchases and sales of their NFTs, thereby saving heaps on gas.
3. Users have many options available.
Say you list an NFT at a specific price, say 1 ETH. Then the floor price surges, say to 2 ETH. Congratulations. Your NFT was purchased at a massive discount. Sudoswap can help you avoid such shortcomings by adjusting your selling price automatically based on its floor price.
What else can you do?
You can create buy-and-sell pools based on customizable bonding curves. (More on this later.) Sudoswap users can earn platform fees by providing both ETH and NFTs. (Passive income, baby!)
4. Step-by-step Guide to Using Sudoswap
There are many ways to use Sudoswap, so let’s start from scratch.
- Head over to Sudoswap.
- Connect your wallet at the top-right corner.
- Click on “Your Pools.”
- On a new page, click on “Create New Pool”. At this point, you’ll be presented with several options.
These options are to…
- Buy NFTs with tokens
- Sell NFTs for tokens
- Do both and earn protocol fees
Clicking on any of the options will take you to a new page. For the token, only ETH is currently available. When selecting an NFT, you may select only NFTs you already hold in your wallet.
On the next page, you set up your pool. Here, you should pay special attention to the Bonding Curve and the Delta. The Bonding Curve is either Linear or Exponential, Linear denoted in ETH, and Exponential denoted as a percentage value. Delta connotes the price change per NFT sold or bought.
In the final step, all you need to do is review your information and then click “Create Pool.” That’s it. You’re done.
If anything, Sudoswap is incredibly user-friendly and intuitive. And its ingenuity is partially in its simplicity. Instead of reinventing the wheel, the platform took what was already working with DEXs and applied the same model to NFTs.
Token Release Schedule
Token Use Case
Similar to an AMM decentralized exchange (DEX), liquidity providers (LPs) have to provide the liquidity pool for the pair to be tradable.
LPs can choose to provide single-sided buy or sell pools or provide both sides along a specific price range called the bonding curve. It gives LPs a lot of control over the pool structure.
Find more information about SudoSwap
If you have any questions, comments, suggestions, or ideas about the project, please email [email protected].
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.