Against the background of news about the ever-growing regulation of the crypto market, cryptocurrency collapses and problems in DeFi, it is easy to forget about NFT. But this area continues to delight users with the opportunity to earn, although not on the same scale as before. On August 11, the total trading volume on Sudoswap AMM, the newly launched NFT trading platform, exceeded $10 million.
An important milestone came 35 days after the launch of the project. At the same time, the NFT trading platform from Coinbase has not yet passed the $ 10 million mark — it is only $ 6.7 million, 100 days after the launch on May 4.
Sudoswap AMM is a new trading platform protocol that changes the idea of liquidity and NFT trading. It is highly flexible, economical and fully connected to the network.
According to the documentation, Sudoswap AMM is a minimal, cost-effective AMM protocol to facilitate the exchange of NFT (ERC721s) for tokens (ETH or ERC20) using customizable bonding curve. Liquidity Providers (LP) can deposit funds into one-way buy or sell pools, or provide both parties with a spread to collect commissions.
The current Sudoswap AMM protocol does not differentiate between different ERC721 identifiers. Pools that are willing to buy or sell non-fungible tokens will return the same price, regardless of which NFT is sent to or from the collection.
Kofi Kufuor, a partner at the cryptocurrency-focused investment firm 1confirmation, believes that Sudoswap AMM offers two main value propositions.
Firstly, Sudoswap AMM allows anyone to easily become a liquidity provider for NFT and receive commissions.
“It’s one of the few opportunities in DeFi and NFTs to earn ‘real yield,” Kufuor said.
Real yield is a new trend denoting projects that distribute fee revenues in mainstream tokens, such as ETH or stable coins. Profits, of course, are far from the triple-digit yields of DeFi in the past, which were mainly denominated in a project’s inflationary governance token.
Sudoswap AMM allows users to deposit a combination of NFT from the same collection and ETH in a certain price range called bonding curve. They can then receive trading fees as other users exchange NFT for ETH or vice versa.
According to Kufuor, another value proposition offer of the trading platform is that the design allows users to instantly sell their NFTs into a pool.
The Sudoswap AMM model allows users to deploy a pool that will programmatically buy or sell NFT at a given price, similar to limit orders. Users also have the option to immediately sell NFT into a pool at a quoted price, instead of accepting bids as on OpenSea.
The dynamics of Sudoswap AMM are all the more impressive because it occurs at a time when the NFT market has bottomed out — weekly volume has fallen from a record weekly high of $6 billion in January to less than $200 million a week since mid-June.
It is noteworthy that Sudoswap AMM currently has only 6,130 users.
Sudoswap AMM does not support royalties, which in itself has caused controversy. The design of the site differs from trading platforms such as OpenSea, which allows creators to turn on royalties.
However, it is difficult to argue with the success – on August 10, Sudoswap AMM secured 5.9% of the total NFT trading volume — not bad for a project that was launched just over a month ago.
According to the materials posted at finance.yahoo.com