There is a hot debate in the NFT space about whether the creators should receive a royalty for their work or not. Meanwhile, Sudoswap, an NFTs trading platform, has been the talk of the town by achieving a $10M trading volume on August 11, 2022. The platform was launched in April 2021 to change the NFT liquidity and trading concept. Let’s find out through this blog what Sudoswap is and how it works.
What is Sudoswap?
Sudoswap is an automated market maker (AMM) where users can instantly buy or sell NFTs without waiting for any buyer or seller. Unlike many NFTs marketplaces such as OpenSea, Sudoswap does not charge a royalty fee (an additional 5% or 10% fee set as creator’s royalty) on its trades. It means, this platform charges only a 0.5% fee as compared to 7.5% on other platforms.
How does Sudoswap work? Buy, Sell & List NFTs
Sudoswap allows users to provide liquidity by buying or selling NFTs or doing both to earn profits. Using customizable bonding curves, users can instantly swap NFTs and ETH or ERC20. There are pools for buying and selling NFTs, and the pool creator predetermines the prices of NFTs in those pools.
Let’s take an example as demonstrated by the following image.
A user takes 5 NFTs from the same collection and 5 ETH, then deposits them into a liquidity pool. He can now trade ETH for that selected NFTs, or can also trade an NFT from the same collection for ETH.
When a user sells an NFT, he receives the best possible price, which is less than the actual market price, no matter how rare his NFT is. Because, in return, the platform facilitates the users by immediately selling their NFTs into bonding curves.
Moreover, Sudoswap also allows its users to list NFTs. For listing an NFT, a user can set the price, but he has to wait till a buyer buys it.
Sudoswap has revolutionized the entire NFT marketplace by enabling instant and low-fee NFT buying and selling. The platform is gaining mainstream attention, and we can expect more from this platform in the future.
To learn more about Sudoswap, click Here.