Does trading NFT via a liquidity pool (Sudoswap and Hadeswap) offer traders a better price offer?
This article was written in collaboration with Zash.
In 2021, NFTs saw a resurgence, with marketplaces like OpenSea and Magic Eden grabbing the headlines. As the NFT mania of 2021 grinds to a halt, business model innovation and creator monetization continues to accelerate. Today, with Ethereum, BNB Chain and Solana alone, there are already over 40 marketplaces competing for market share. This room is just beginning.
We wanted to delve deeper into the three new players Sudoswap, Hadeswap and Blur to see how they stacked up against established players like Opensea, Magic Eden and x2y2. All three of these protocols leverage novel technology that allows users to trade non-fungible tokens through a liquidity pool rather than an auction system.
Sudoswap is the pioneer of this technical solution:
Shortly after, a protocol on the Solana chain called Hadeswap followed:
And the marketplace that recently got a lot of hype thanks to a full-stack trading solution called Blur:
Since September 2022 there is a new way for users to trade their NFTs, namely trading via a liquidity pool. With Sudoswap as a prime example, liquidity pools are one of the main components of decentralized finance and Uniswap V3 has evolved the concept to provide concentrated liquidity with more customization.
On OpenSea, users trade NFTs using an order book model. On the other hand, Sudoswap is the first decentralized NFT marketplace to allow users to trade under an Automated Market Maker (AMM) model. Through her…
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