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Gate NFT launches NFT liquidity pools starting with MAYC and Azuki sub-funds

Gate.io this week launched its new Automated Market Maker (AMM) along with its dedicated NFT liquidity pool. Between these two launches, buyers and sellers can easily trade NFTs without a pricing agreement between two parties.

At launch, Gate NFT opened trading in its four pools, including Mutant Ape Yacht Club and Azuki’s fractional NFTs. Currently, the function supports USDT for buying and selling NFTs.

What sets Gate.io’s products apart is the accessibility they offer to buyers and sellers. In conventional markets, a great deal of time and capital is spent agreeing buyers and sellers on a specific price while simultaneously viewing multiple individual offers.

While this allows for much more leverage for both sides, it impacts how liquid an NFT market can really be. This is where Gate’s liquidity pools come into play.

AMMs are the same technology that decentralized exchanges are built on. They allow traders to buy and sell assets using liquidity pool (LP) smart contracts. Liquidity pools consist of two different assets that form their trading pair, allowing traders to instantly exchange one asset in the liquidity pool for another. Additionally, anyone can create an LP and earn on transaction fees provided they have assets to allocate to the pool.

Using liquidity pools on Gate NFT, an LP provider can create or participate in a pool consisting of NFTs from a specific collection paired with another cryptocurrency. Traders could then buy or sell within this pool, with the price being determined instantly and automatically based on known parameters.

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