How Sudoswap is Revolutionizing NFT Trading
For all the technology behind non-fungible tokens (NFTs), trading NFTs is still a tiresome and slow process. That was until Sudoswap came and changed the game.
Now, buying and selling NFTs can be as smooth as trading cryptocurrencies on Uniswap. By integrating automated market makers (AMM) into non-fungible tokens trading, traders no longer have to wait to find intending buyers before getting liquidity.
Its decentralized marketplace has grown exponentially since it landed and took the market by storm. According to blockchain analytics firm Nansen, the protocol has a year-to-date volume of 39.1k ETH, with more than 3.35K ETH transacted in the 30 days to 12 December. What has made the protocol such a success?
What is Sudoswap?
It is a decentralized exchange (DEX) protocol that allows users to swap NFTs for liquidity on the Ethereum blockchain. While the protocol went live in May 2022, its launch of the NFT automated market maker (AMM) protocol in July was the game changer.
With the AMM, users can trade Sudoswap non-fungible tokens into a liquidity pool (buy-only, sell-only, or buy-and-sell pools) and receive Ethereum quickly. Generally, you deposit NFTs or ETH into your pool.
Instead of listing different non-fungible token collections, you select the right collection to trade and choose your floor price, bonding curve, and delta (which adjusts the NFT price depending on sales or purchases).
What is the SUDO token?
The SUDO token is the governance token of the protocol's ecosystem. With an initial supply of 60 million, SUDO is not transferable. The SUDO airdrop began in September, with the lion's share of 41.9% going to XMON holders.
Treasury allocations take up another 25.1%, while initial team members and SudoRandom labs take 15% each. Oxman holders and Retroactive LP airdrops take the remaining tokens.
How it differs from other NFT marketplaces
There's always liquidity in the pool for specific Sudoswap NFT collections, and traders don’t have to wait for a buyer before getting liquidity.
Sometimes, this may mean getting a less-than-ideal price for your asset. As long as your NFT is not super-rare or high-priced, that should not be a challenge.
Apart from increased instant liquidity, the decentralized marketplace also eliminates intermediaries who may choose whether or not to accept your NFT collection. The protocol may as well be the poster boy for decentralized marketplaces.
Additionally, it eliminates the payment of royalties to NFT creators on secondary sales, unlike OpenSea. On OpenSea, NFT creators may get as much as 5% in perpetuity every time an NFT sale occurs. However, with the decentralized protocol, all earned fees belong to the Sudoswap NFT owners and traders who choose the trading pools and set their prices.
Sudoswap fees are low, making it more attractive than its counterparts. For example, while OpenSea charges 2.5% and LooksRare charges 2%, Sudoswap fees are just a 0.5% fee on trades. The transaction fee is remitted to the Treasury for the development of the ecosystem. Again, you can lower your gas fees when you trade in bulk and reduce costs further.
Technavio estimates that the non-fungible token market worldwide will grow by $113.9 million between 2022 and 2027 at a CAGR of 35%. That suggests significant potential. Anyone looking to take advantage of that by trading NFTs may as well enjoy low Sudoswap fees and instant liquidity as extras.
Author: Ejiofor Francis
Ejiofor Francis is tech-savvy. He’s a tech writer and researcher with over six years of experience. His current focus is on blockchain, tech and agriculture. Francis loves helping both startups and mid-sized companies to develop great content and marketing strategy that sets them on the right track.