Sudoswap is the first DeFi marketplace to offer swaps to and from NFTs. Sudoswap aims to shake up NFT trading with automated market making algorithms (AMM) and liquidity pools, echoing the first decentralized exchange Ethereum (DEX) uniswap. Read on and find out if the Sudoswap project is worth it.
What is SudoSwap?
Sudoswap is the first decentralized marketplace to offer swaps to and from Ethereum NFTs. Also, Sudoswap was launched in July 2022, so the growth trajectory is surprising, as the daily user numbers below show. It also mentions the need for such on-chain financial instruments. Sudoswap was launched by anonymous developer 0xmons and co-founder StateLayer.
0xmons describes the NFT Decentralized Exchange (DEX) as a “Gas Optimized and Capital Efficient Base Layer Protocol for NFT Liquidity”. It’s a bite, so let’s split it. We’ve already talked about capital efficiency. Gas optimization translates to minimal user fees, the base tier refers to tier 1 of your Ethereum.
But why do we need Sudoswap in the first place? Currently, NFT marketplaces operate on an order book model. This is also how traditional centralized exchanges operate. These traditional markets claim to offer decentralized services, but in fact they do not. They also suffer from downtime and lack of transparency as none of their data is on chain.
Advantages of using sudoswap:
- Sudoswap is on-chain – Anyone can create a website and view NFTs listed on cryptocurrency exchanges. In doing so, they facilitate greater decentralization. (If the market goes down, there are always other proxy sites you can access, so the market is never really “down.”) Living on-chain also makes it easier for on-chain collectives like DAOs and multisig groups to participate. Finally, on-chain markets are less susceptible to any kind of censorship, a fundamental principle among many blockchain proponents.
- Minimum charges apply to users – Sudoswap only charges 0,5% and goes to the Sudo Treasury. (You can check Click here for Treasury Wallet.) Users can also do bulk purchases and sales of NFTs, saving a lot of gas.
- Users have many options – Suppose you want to list your NFT at a certain price, say 1 ETH. After that, the minimum price goes up to, say, 2 ETH. Congratulations. Your NFT was purchased at a significant discount. Sudoswap helps to avoid these shortcomings by automatically adjusting the sale price based on the lowest price.
How does sudoswap work?
Sudoswap offers various services for NFT users. But the ingenuity behind the platform is that 0xmons looked at what was already working in DEX and extended the model to include its NFTs. That’s why Sudoswap allows users to buy and sell NFTs using a liquidity pool. Specifically, users can contribute liquidity to the pool and earn transaction fees. Users can also create pools configured to buy and sell their specific NFT collections along custom binding curves. Please note that pools are created and administered by only one liquidity provider.
Users can create three types of pools to earn platform fees: sell-only pools, buy-only pools, and liquidity pools. Suppose you have 5 NFTs, but some of them are not floor NFTs, so you don’t want to list them all with a floor price. In this case, you can create a pool whose price adjusts according to the configuration. That way, he can finish his NFT collection on autopilot without constantly checking prices. If you want to create a buy pool, you can load the pool with ETH and define the buy curve for bonds. In this way, the price drops with each purchase, sweeping a pre-set price range and allowing the average dollar cost to be your NFT position.
Peculiarities of the Sudoswap task
The peculiarity of Sudoswap is that the task is produced by working with a trio of structures: non-custodial transaction with productive gasoline swaps and non-custodial swaps, minimum charges and multi-asset swaps (multi-asset swaps). Transaction fees on Sudoswap are much cheaper than related transactions on OpenSea.
The non-custodial backend means Makers never need to spend a listing fee, they only need to flag a transaction. Executors spend a commission to execute trades, but fees can be the same or considerably lower than other major NFT exchanges. NFTs on their platform can also be offered for ETH like many other exchanges or traded on any mix of various Tokens ERC In addition, Sudoswap does not charge any fees.
SudoAMM
Unlike most other NFT markets now, sudoAMM makes use of an on-chain liquidity pool as a replacement for an off-chain buying guide. Traditional AMM allows you to offer liquidity that bears the cost of infinity. SudoAMM is a centralized liquidity AMM for total NFT trading, which means everyone is free to customize the cost selection at which they present liquidity.
SudoAMM does not split NFTs into ERC tokens, but instead makes use of bond curves to facilitate trading the entire NFT. As a result, some estimates will be established primarily based on the bond curve shape chosen by the creators of the Pool – this is a special method for the market in the NFT ecosystem.
XMON/SUDO Token
XMON Token
Sudoswap has a governance token, this token is XMON. Also, as Sudoswap is a decentralized trading protocol, only governance tokens make sense. Admittedly, most projects don’t really need it, even if decentralized. Only time will tell how these tokens will grow in value and bring even more utility to the project. There is an outstanding supply of 1.495 XMON coins and a maximum of 10.000 XMON tokens.
SUDO token
SudoAMM will be governed by the SUDO token. Once the token is issued, SudoAMM contracts will be managed immediately by the SUDO token holders.
Bottom Line
Sudoswap has experienced tremendous growth since launching its NFT Marketplace in July 2022. With the rapid adoption of NFT pools and the elimination of creation fees, Sudoswap has already made a notable impact on the ecosystem. PortalCripto hopes that you, reader, have clarified everything about the Sudoswap project.
