Sudoswap Exchange Is Gaining Traction Fast

The NFT ecosystem has relied on centralized marketplaces, most prominently OpenSea, for practically its entire existence. Now, decentralized alternative Sudoswap is gaining traction — fast.

Sudoswap aims to shake up NFT trading with automated market making (AMM) algorithms and liquidity pools, echoing premiere Ethereum decentralized exchange (DEX) Uniswap.

Poor liquidity and slippage has long plagued NFT markets. A CryptoPunk might sell for $100,000 on one day but not garner similar offers for weeks or months — leaving investors confused over exactly how much it’s worth.

With its own brand of AMM, Sudoswap allows NFT traders to buy and sell without having to wait for an offer. Sellers contribute their crypto as liquidity to facilitate smoother automated trades, with orders settling with the pool rather than an individual, all on-chain.

“Each user who wants to sell an item deposits one or more NFTs into a pool which they control the pricing over, and the actual purchases happen across all of the pools,” Owen Shen, Sudoswap’s founder, explained on a podcast in May.

Shen added: “You can set a pool with a higher pricing, but it’s the same as listing an item at a higher price — users will buy elsewhere if there’s cheaper items on the market.”

NFT traders are into the idea
In essence, each NFT listing on Sudoswap is actually its own pool, and every seller is solely responsible for providing liquidity to those pools. Users can set NFT values and other parameters for their pools — such as selling NFTs on a bonding curve that slowly increases as pieces are bought.

With Sudoswap, traders can quickly buy and sell NFTs across all pools, allowing for more immediate price discovery and reducing the threat of being stuck with an illiquid asset.

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