NFT Decentralized Exchange Collection.xyz launches on Ethereum
Important takeaways
- A new decentralized NFT exchange, Collection.xyz, launches on Ethereum.
- Unlike first-generation NFT marketplaces, Collection.xyz has an AMM mechanism.
- The aim of the protocol is to streamline the buying and selling of NFTs.
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Collection.xyz wants to make NFT trading a smoother experience thanks to the innovative automated market mechanism.
An essential building block
The NFT market is increasingly adopting DeFi components.
A new decentralized NFT exchange, Collection.xyz, launches today on Ethereum.
Unlike first-generation NFT marketplaces like OpenSea or LooksRare, it sports liquidity pools and Automated Market Maker (AMM) features – just like DeFi protocols like Uniswap or Curve. Users give either NFTs or ETH to these pools and receive tokens as rewards. This mechanism, in turn, allows traders to automate the buying and selling of NFTs in bulk without intermediaries.
Collection.xyz also offers custom trading options, which include the ability for traders to specify which NFTs they want to accept (for example, only NFTs with unique properties, or super rare NFTs, or NFTs that trade above the floor price). Users can also target specific NFT’s ID numbers in the collection.
“We developed Collection.xyz as an important building block for the NFTFi industry,” said Collection.xyz co-founder Spencer Yang. By enabling composition between Collection.xyz and other protocols, users can create infinite combinations and new transaction possibilities such as hedging their liquidity pool position to borrow against, buy NFTs and pay later or deposit LP tokens into other return protocols to stack for yield. “
Furthermore, Collection.xyz aims to make “community-driven curation” a priority, meaning that the protocol will seek to involve NFT community members in market-making activities. The decentralized exchange also claims to offer a solution to the NFT’s royalty debate by tying the royalty payment to the liquidity of the creator’s collection pools.
Collection.xyz has been audited by ABDK Consulting, which counts Uniswap, GMX, ZKSpace, CitaDAO and Sudoswap as some of its clients.
Disclaimer: At the time of writing, the author of this piece owned BTC, ETH and several other crypto assets.
