Sudoswap: NFTs Zero-to-One Moment?

• NFTX pioneered the financialization of NFTs, but their model comes with significant drawbacks that have hindered growth.
• Centralized secondary marketplaces such as OpenSea have dominated trading volume, but their off-chain orderbook design presents numerous trade-offs.
• Customizable bonding curves introduced by Sudoswap provide lower slippage for traders and greater capital efficiency for LPs.
• Sudoswap has many catalysts in the short to mid term including the SUDO token launch, support for ERC20 tokens, marketplace aggregator integrations and more.

The first iteration of Sudoswap was an OTC service that enabled users to swap multiple digital assets with others without any fees. Last month, Sudoswap launched a concentrated liquidity AMM that focuses on swaps between NFTs and ETH using customizable bonding curves. Prior to Sudo’s AMM design, projects such as NFTX used a constant product invariant (x*y=k) for its NFT token derivative pools but have failed to gain much traction thus far. Customizable bonding curves aim to reduce slippage, increase capital efficiency, and empower NFT collectors to create their own marketplace.

The Failure of Predecessors

NFTX was the first project to enable the tokenization of NFTs that could then be traded on external AMMs, Sushiswap in particular. Users deposit their NFTs into a vault and mint fungible ERC-20 tokens, referred to as a “vTokens”. Each vToken can be redeemed for a random NFT within the vault. NFTX pioneered liquid markets that help establish floor prices for NFTs through their innovative design, but it comes with drawbacks.