Royalty-free Sudoswap finds favor with NFT traders
With all the regulatory news threatening fundamental principles of DeFi, it’s easy to forget about NFTs.
Not everyone has forgotten, however, as NFT traders pushed cumulative trading volume on sudoAMM, a newly launched NFT marketplace, past $10 million on August 11th.
The milestone comes 35 days after the project was launched. In contrast, Coinbase’s NFT marketplace has yet to pass $10 million in total volume – it’s at just $6.7 million, 100 days after launching on May 4.
“Real dividend”
Kofi Kufuora partner at crypto-focused investment firm 1confirmation, sees sudoAMM as bringing two major value propositions to the table.
First, sudoAMM allows anyone to easily become a liquidity provider for NFTs and earn fees.
“It is one of the few opportunities in DeFi and NFTs to earn ‘real yield,'” Kufuor told The Defiant. Realyield is a new trend, which denotes projects that distribute fee income in common tokens like ETH or stablecoins. This is far from the triple-digit returns of previous DeFi, which were largely denominated in a project’s inflation-steering token.
SudoAMM allows users to deposit a combination of NFTs from a single pool and ETH, along a specific price range called a bond curve. They can then earn trading fees when other users exchange NFTs for ETH or vice versa.
Effective pricing
The marketplace’s other value proposition is that sudoAMM’s design allows users to instantly sell their NFTs to a pool, Kufuor said.
SudoAMM’s model makes it so that users can distribute a pool that will programmatically buy or sell an NFT at a given price, equal to limit orders. Users also have the ability to sell NFTs instantly into a pool at a stated price, rather than having to accept a bid like on OpenSea.
SudoAMM’s momentum is all the more impressive because it comes at a time when the bottom has fallen out of the NFT market – weekly volume has fallen from an all-time weekly high of $6B in January to below $200M weekly since mid-June.
Nevertheless, the protocol is small. SudoAMM currently has only 6130 users.
Creator fees
SudoAMM also does not support royalty fees, which has created a controversy of his own.
SudoAMM’s design contrasts with marketplaces like OpenSea, which allow creators to turn on royalties.
However, it’s hard to argue with success – SudoAMM facilitated 5.9% of total NFT trading volume on August 10 – not bad for a project launched just over a month ago.
