Sudoswap, a decentralized alternative, wants to shake up NFT trading with automated market-making (AMM) algorithms and liquidity pools. It wants to pitch up against the likes of OpenSea and premiere Ethereum DEX Uniswap.
Sudoswap, with its own brand of AMM, makes it possible for NFT traders to buy and sell without having to wait for an offer. For smoother automated trades, sellers contribute their crypto as liquidity. Their orders settle with the pool rather than an individual. Owen Shen, Sudoswap’s founder, had said in May that each user who wants to sell an item, deposits one or more NFT into a pool which they control the pricing over. The actual purchase happens across all the pools. Moreover, the user can set a pool with higher pricing. However, it’s the same as listing an item at a higher price. It should be noted that users can make purchases elsewhere if there are cheaper items on the market.
The NFT listing on Sudoswap is its own pool. The sellers are responsible for providing liquidity to those pools. Likewise, users can set NFT values and other parameters for their pools, like selling NFTs on a bonding curve that increases as pieces are bought. Traders with Sudoswap can quickly buy and sell NFTs across all pools. This allows them for immediate price discovery. It also reduces the threat of being stuck with an illiquid asset.
Furthermore, Sudoswap does not pay royalties to creators on NFT trades. It charges 0.5% fees on trades, funds it sends to its treasury and not creators. The low fees, in addition to its liquidity pool structure, have become attractive for traders.