SudoSwap Decentralized NFT Marketplace Review

Decentralised News

Transcript

00:00Welcome back to Decentralized News. In today's video, we're looking at SudoSwap Decentralized

00:05NFT Marketplace. So SudoSwap does have an automated market maker, which is a minimal

00:12gas-efficient AMM protocol for facilitating NFT or ERC721 standard tokens to ERC20 swaps

00:23using these customizable bonding curves. So liquidity providers can deposit into a single-sided

00:31buy or sell pool or provide both sides with a spread in order for them to capture fees. So

00:37the base unit of the protocol is the LSSVM pair, which can hold NFTs, tokens, or both. End users

00:47can also interact with the LSSVM router to swap multiple pools or manage approvals on one

00:57contract. Similar to other NFT protocols, the current SudoSwap AMM protocol makes no distinction

01:04between different ERC721 IDs. And pools are also willing to buy or sell NFTs, will actually

01:15return the same price no matter which NFT is sent in or out of the collection. So this

01:22is a very interesting project because they actually just really focus on concentrated liquidity.

01:30So to just give you like a little bit of a background, if you think about the state of

01:34NFT liquidity, NFTs themselves are by nature non-fungible. Of course, this has caused issues

01:41around the provision of deep liquidity and regular market, sort of trading markets, right? So

01:47historically, this thin liquidity has driven or has been driven by a few main factors, including

01:54like high protocol fees and royalties, which add a lot of friction to liquidity. Differing trades

02:00on NFT collections, which cause price flow or flow to be inconsistent and also difficult to model

02:08via traditional V2 AMM curves, right? So fractionalization of NFTs, or if you think about

02:16NFTX, NFT20, also help sort of deepen liquidity on NFTs, but also forces people to trade portions of

02:24an NFT and this adds difficulty to making markets on specific rarities or custom traits. Fractionalization

02:34also reduces asset composability and also renders it useless outside that original system. So over

02:41the past year, this NFT marketplace known as Sudoswap has actually built up a loyal fan base

02:48in their V2 of their protocol, which is currently live. They offer multi-asset non-custodial

02:54and gas-optimized swaps. So it's also interesting to know that this is something that, you know,

03:04it's still developing as far as just development in the NFT space. So they have this nostalgic retro

03:11interface as well, which is reminiscent of Curve, but, you know, it can cause uncertainty as well.

03:18If you're a novice NFT trader, you know, so it wasn't designed to be an efficiently searchable

03:24marketplace. So, you know, what we really want to just touch on right now on Sudoswap, especially

03:30is the fact that, you know, if you think about casual NFT collectors have largely sort of avoided

03:37this protocol, even mistaking it for a phishing site. I've heard that the minimalist front end

03:43doesn't necessarily offer the most functionality for discovering and browsing collections.

03:48Leaving it, you know, a user basis, you know, to actually just focus more to

03:53this sort of audience that's more interested in OTC swap, so to speak. So despite the restrictions,

04:02Sudoswap has actually maintained, you know, quite a good number of unique users as well.

04:09And, you know, you can compare it to some other bigger protocols as well.

04:13But just thinking of a non-custodial back end, it just means that makers pay no gas to list and

04:20they only sign a transaction and also takers pay a fee to execute the swap, which is at equal to,

04:28if not cheaper than swapping on another major NFT exchange. So NFTs can also be exchanged for ETH,

04:35like other platforms, or swapped into any combination of a variety of ERC-20 tokens. And on top of it,

04:42also the swap also doesn't charge NFTs. Needless to say, it quickly became popular with the more

04:48involved NFT trading audience with the rollout of their pseudo AMM, which I did mention earlier.

04:55So, you know, this is also something that kind of like pushed them into like some good uptake of

05:04users. So, yeah, I think, you know, I really would encourage you to look out for this one.

05:10Currently, there is no pseudo token or anything like that. But if you're thinking about,

05:15yeah, you know, just the trading options that are available in the NFT marketplaces,

05:20if you're thinking about why you would use pseudo, obviously, there is a substantially lower fee model

05:26there and flexibility as well. You know, you're able to have listings supported via aggregator,

05:32aggregator, then also making, you know, discoverability less important than offering best pricing in sort

05:41of the short term. And the aggregation also makes liquidity providers very profitable to start and

05:48composability and participation as well. Pools are on chain and DAOs and MARTA6 can also manage them

05:54without delegating for signing or writing custom governance codes as well. So there's a lot more

06:01programmability that's available off the shelf. And this would allow for the creation of custom

06:06sort of products and pools like we've seen with Uniswap V3, for example. So check out

06:12Sudoswap. This is one I'll be looking out for. And I might just play around with it in case they end up

06:19doing some sort of an eardrop at some point. Let me know what your thoughts are. Check out links in

06:23the description to my book, Stokenized Trillions, Blockchain Applied. Don't forget to do like,

06:27share, subscribe, turn on the notification bell. See you in the next video. And also join our

06:32Telegram and our Discord and go to our main site if you're interested in learning more about sort of

06:39the best cryptocurrency exchanges, DeFi platforms and NFT marketplaces. We have all of that there and

06:46also some free tools and resources that will help you navigate your way in this crypto ecosystem.

06:52Until next time, peace and love.

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