What is sudoswap NFT automated market maker & exchange

What is sudoswap? NFT automated market maker & exchange

Table of Contents

What is sudoswap?

Sudoswap is a gas-efficient, automated market maker for NFT (ERC721s) to token (ETH or ERC20) swaps with adjustable bonding curves. It’s also an NFT marketplace.

With Sudoswap, liquidity providers have two options. They can provide a spread to both parties in order to collect fees, or they can deposit into a one-sided buy/sell pool.

This protocol’s main unit is called “LSSVMPair,” and it can store NFTs, tokens, or both. “LSSVMRouter” is then used by the end users to swap via multiple pools and handle approvals on one contract.

Keep in mind that the liquidity pools will return the same price, irrespective of which particular NFT from a collection is being traded. That is because Sudoswap doesn’t make a difference between ERC721 IDs.

sudoswap homepage
Sudoswap homepage

Read on to learn more about liquidity pools, bonding curves, and how to use Sudoswap.

AMMs, Liquidity Pools, and Bonding Curves

All this new terminology might be unfamiliar, so let’s explore what it means.

Simply put, automated market makers (AMMs) are the protocols behind decentralized exchanges (DEXs).

They provide liquidity for the DEX via automated trading algorithms. That replaces the need for order books when pairing buyers and sellers.

Liquidity pools are smart contracts used for swapping assets. The most common example would be an NFT to ETH pool, which is used to trade NFTs for ETH and vice versa.

They use bonding curves to determine the price of assets. So each time an asset is purchased from the pool, its price will increase and vice versa.

Bonding curves are used to define the price and supply relationship for an asset.

With Sudoswap, you have a choice between linear and exponential bonding curves.

Linear curves increase or decrease NFT prices by a fixed amount (delta) after each asset is sold or purchased. Exponential curves, on the other hand, increase or reduce NFT prices by a percentage (delta).

Buying and Selling NFTs with Sudoswap

Now we know what Sudoswap is. So let’s learn how to use it.

SudoSwap image1
Sudoswap NFT overview

How to Buy NFTs

  1. Go to the collections page.
  2. Pick a collection.
  3. Select the NFTs you want to purchase (they will show up in the cart on the right).
  4. Use the blue “sudo swap” button to execute the swap.

How to Make a Collection Offer

  1. Go to the “Collections” page using the top menu.
  2. Pick a collection.
  3. Use the blue “Make Collection Offer” button (a pop-up will appear).
  4. Set a price for your offer.

How to Sell NFTs

  1. Go to the “Collections” page using the top menu.
  2. Pick a collection.
  3. Select the NFTs you want to sell (they will show up in the cart on the right).
  4. Use the blue “sudo swap” button to execute the swap.
  5. Verify the first transaction with your wallet to allow NFT access to Sudoswap.
  6. Verify the second transaction with your wallet to execute the sale.

How to List NFTs

  1. Go to the “Your NFTs” page using the top menu.
  2. Pick the NFTs you want to list.
  3. Use the blue “List NFTs” button (a pop-up will appear).
  4. Set the price using “Start Price.”
  5. If you want, set a price increment after every sale using “Price Increase.”
  6. Use the blue Approve button.
  7. Verify the first transaction with your wallet to allow NFT access to Sudoswap.
  8. Verify the second transaction with your wallet to execute the sale.

Difference Between Selling and Listing

Whenever you sell an NFT, it’s instantly sold for the best price into the bonding curve.

Listing an NFT is different because you can set a custom price and wait for someone to buy it.

For immediate liquidity, sell your NFTs. But remember, there will be slippage, so your NFT will be sold for less than the market value.

Providing Liquidity

When it comes to providing liquidity, you have two options. You can buy/sell NFTs over a range of prices (bonding curve) or collect trading fees by doing both.

Creating a Pool

  1. Go to the “Your Pools” page using the top menu.
  2. Use the “Create a New Pool” button.
  3. Pick the type of pool you need.

Buying NFTs with ETH

  1. Use the “deposit” drop-down menu and click on ETH.
  2. Use the “receive” drop-down menu and click on the desired collection.
  3. Set the starting price.
  4. Pick the bonding curve type.
  5. Set the delta value.
  6. Set the number of NFTs you want to buy
  7. Use the “Next Step” button
  8. Click the “Create Pool” button
  9. Finally, verify the transaction using your wallet

Note: when buying a single asset, it doesn’t matter which curve or delta you pick.

Selling NFTs for ETH

  1. Use the “deposit” drop-down menu and click on the desired collection.
  2. Use the “receive” drop-down menu and click on ETH.
  3. Set the starting price.
  4. Pick the bonding curve type.
  5. Set the delta value.
  6. Set the number of NFTs you want to sell.
  7. Use the “Next Step” button.
  8. Pick the NFTs you want to deposit.
  9. Click the “Approve” button.
  10. Verify the first transaction using your wallet.
  11. Click the “Create Pool” button.
  12. Verify the second transaction using your wallet.

Note: when selling a single asset, it doesn’t matter which curve or delta you pick.

Doing Both to Earn Trading Fees

  1. Use the “deposit” drop-down menu and click on ETH.
  2. Use the “receive” drop-down menu and click on the desired collection.
  3. Set the desired trading fee percentage.
  4. Set the starting price.
  5. Pick the bonding curve type.
  6. Set the delta value.
  7. Set the number of NFTs you want to buy and sell.
  8. Use the “Next Step” button.
  9. Pick the NFTs you want to deposit.
  10. Click the “Approve” button.
  11. Verify the first transaction using your wallet.
  12. Click the “Create Pool” button.
  13. Verify the second transaction using your wallet.

Recent sudoswap news

On July 22th, Uniswap announced they would launch NFTs with full Sudoswap support.

SudoSwap image2
Uniswap news tweet

This integration will enable Uniswap users to take full advantage of Sudoswap’s AMM liquidity.

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All articles published on Coinmash are strictly for informational purposes only. Any action that is taken from reading content published on this website is done at your own risk. 

About the Author
James Satoshi
James Satoshi
James is a leader in Web3, NFTs, & DeFi. You'll spot him covering all topics through-out Coinmash - some say he's so good he doesn't even seem real.