Sudoswap is the first DeFi marketplace to offer swaps to and from NFT. Sudoswap aims to shake up NFT trading with automated market making (AMM) algorithms and liquidity pools, echoing the first decentralized Ethereum (DEX) Uniswap exchange. 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. Additionally, Sudoswap launched in July 2022, so the growth trajectory is astonishing, as seen in the daily user counts below. It also mentions the need for such chain financial instruments. Sudoswap was started by anonymous developer 0xmons and co-founder StateLayer.
0xmons describes the NFT Decentralized Exchange (DEX) as a “gas-optimized and capital-efficient entry-level protocol for NFT liquidity”. It’s a bite, so let’s share it. We have already talked about capital efficiency. Gas optimization involves minimal usage costs, the basic tier refers to tier 1 of your Ethereum.
But why do we need Sudoswap in the first place? Currently, NFT markets operate on an order book model. This is also how traditional centralized exchanges work. These traditional markets claim to offer decentralized services, but in reality they don’t. They also suffer from downtime and a lack of transparency because none of their data is on the chain.
Advantages of using sudoswap:
- Sudoswap is on-chain – anyone can create a website and view the NFTs listed on cryptocurrency exchanges. In doing so, they facilitate greater decentralization. (If the market goes down, there are always other proxy sites that you can access, so the market is never really “low”.) Living in chain also makes it easier for chain collectives like DAOs and multisig groups to participate. Finally, on-chain markets are less susceptible to any kind of censorship, a fundamental tenet among many blockchain advocates.
- Minimum fees apply for users: Sudoswap only charges 0.5% and goes to Sudo Treasury. (You can check Click here for Treasury Wallet.) Users can also buy and wholesale 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 rises to, say, 2 ETH. Congratulations. Your NFT was purchased at a significant discount. Sudoswap avoids these shortcomings by automatically adjusting the sale price according to the lowest price.
How does sudosswap work?
Sudoswap offers various services for NFT users. But the ingenuity behind the platform is that 0xmons looked at what already worked in DEX and extended the model to include its NFTs. This is why Sudoswap allows users to buy and sell NFTs using a liquidity pool. In particular, users can contribute cash to the pool and earn transaction fees. Users can also create configured pools to buy and sell their specific NFT collections along custom bond curves. Note that pools are created and administered by a single liquidity provider.
Users can create three types of pools to earn commissions on the platform: sell-only pool, buy-only pool, and liquidity pool. Let’s say we have 5 NFTs, but some of them are not basic NFTs, so you don’t want to list them all with a minimum price. In this case, you can create a pool whose price adjusts according to the configuration. This way, he can complete his NFT collection on autopilot without constantly checking prices. If you want to create a buying pool, you can load the pool with ETH and set the bond buying curve. In this way, the price decreases with each purchase, ranging in a predefined price range and allowing the average cost in dollars to be your NFT position.
Peculiarities of the Sudoswap task
The peculiarity of Sudoswap is that the task is carried out by working with a trio of structures: non-custodial transaction with productive gasoline swaps and non-custodial swaps, minimum loads and multi-asset swaps. Transaction fees on Sudoswap are much cheaper than related transactions on OpenSea.
The non-custodial backend means creators never have to spend an insertion fee, they just need to report a transaction. Executors spend a fee to execute trades, but the fees can be the same or significantly 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 ERC tokens. Furthermore, Sudoswap doesn’t charge any fees.
Unlike most other NFT markets, sudoAMM uses an on-chain liquidity pool as a replacement for an off-chain buying guide. Traditional MA allows you to offer liquidity that bears the cost of infinity. SudoAMM is a centralized liquidity AMM for total NFT trading, which means that everyone is free to customize the selection of costs at which to present liquidity.
SudoAMM does not split NFTs into ERC tokens, but instead uses bond curves to facilitate trading of the entire NFT. Consequently, some estimates will be made mainly on the basis of the shape of the bond curve chosen by the creators of the Pool: this is a particular method for the NFT ecosystem market.
Step by step guide to using Sudoswap
There are several ways to use Sudoswap, so let’s get started:
- Go to sudoswap.
- Link your wallet in the upper right corner.
- Click on “Your pools”.
- On a new page, click “Create a new pool”. At this point, you will be presented with several options.
The options are:
- Buy NFT with tokens
- Sell NFT by token
- Do both and earn protocol fees
By clicking on one of the options, you will be redirected to a new page. For the token, only ETH is currently available. When selecting an NFT, you can only select NFTs that you already have in your portfolio. On the next page, set up your pool. Here you need to pay special attention to the bond curve and the delta. The binding curve is linear or exponential, linear shown in ETH and exponential shown in percentage. Delta refers to the price change per NFT sold or purchased.
In the final step, you just need to verify your information and click “Create Pool”. That’s all. You have finished. On the contrary, Sudoswap is incredibly easy to use and intuitive. And part of its ingenuity lies in its simplicity. Instead of reinventing the wheel, the platform took what already worked with DEXs and applied the same model to NFTs.
XMON / SUDO Token
Sudoswap has a governance token, this token is XMON. Also, since Sudoswap is a decentralized trading protocol, only governance tokens make sense. Sure, most projects don’t really need them, even if they’re decentralized. Only time will tell how these tokens will increase in value and bring even more utility to the project. There is an exceptional stock of 1,495 XMON coins and a maximum of 10,000 XMON tokens.
SudoAMM will be governed by the SUDO token. Once the token is issued, SudoAMM contracts will be immediately managed by the SUDO token holders.
Learn more about XMON
Where to buy the XMON token?
The XMON token can be purchased on several major cryptocurrency exchanges, some of the largest are: MEXC, BKEX, Uniswap (V2)
O sudoswap has experienced phenomenal growth since it launched its NFT market in July 2022. With the rapid adoption of NFT pools and the elimination of creation fees, Sudoswap has already had a major impact on the ecosystem. PortalCripto hopes that you, the reader, have clarified everything about the Sudoswap project.
* PortalCripto values the quality of the information and certifies the verification of all the contents produced by its team, underlining however that it does not formulate any type of investment recommendation, as it is not responsible for losses, damages (direct, indirect and ancillary), costs and failure I earn.