Forget about DeFi Summer: NFT Autumn is coming

Forget about DeFi Summer: NFT Autumn is coming

While we’ve all heard the catchphrase that “bear markets are for builders,” until very recently, it seemed like no one in cryptocurrency was building anything interesting these days.

All NFT drops used the same old recycled concepts. DeFi still hasn’t recovered from Luna PTSD. And on top of that, the Tornado Cash Penalties Let’s ask if the risks of building in DeFi are higher than we expected.

But when I was making the move a few weeks ago, I finally found the excitement and new, fresh thing I was looking for. It all started when I stumbled into a lively discussion between crypto influencer Cobie and what seemed like all NFT Twitter residents. Cuban raised NFT collectors when he referred to NFTs as “altcoins with pictures.”

What many considered a low insult I saw as a reset for me Overton window And a sunflower test for my cognitive biases. It has changed my view about NFTs. If you ignore all the nuances and think carefully about the smart contract, Alt coins with pictures is really what NFTs really are.

Sudoswap is the next new thing

This simple but provocative idea is part of the reason sudoswapand it’s just Announce the referee code (Sudo), it’s fast becoming the place for NFTs these days.

Launched in July – and its name is crowd-sourcing on Uniswap for reasons that will soon appear – Sudoswap is the first decentralized NFT exchange to operate faithfully with a blockchain Automated Market Maker (AMM).

In other words, Sudoswap is a file protocolAnd, as such, it’s meant to work in tandem with other protocols. The liquidity it provides via AMM can be accessed through other protocols, dapps and even markets. By contrast, a massive NFT marketplace like OpenSea is a closed ecosystem with a closed order book; Although clients provide liquidity, the platform gets a transaction fee.

Removing the middleman, as always, is a big idea. Although others have tried to solve the NFT liquidity issue, sudo – created by the pseudonym team of stellarAnd the 0xmonsAnd the 0xHamachiAnd the bored genius– He was the first to actually solve it. Platforms like OpenSea and LooksRare are marketplaces, but Sudoswap works like an exchange.

Sudoswap is NFTs What is Uniswap for altcoins

The way I see it, Sudoswap does for the NFT space what Uniswap did for DeFi.

Part of the reason Uniswap was such a big deal when it launched was because it took the fees that central exchanges would normally hold, and awarded those fees to liquidity providers, eliminating the need for traditional market makers.

In fact, I think it’s possible Be the spark that finally brings excitement in 2020 DeFi Summer To the world of NFT. Call it NFT Autumn. One of the moments that turbocharged DeFi was when AMM created liquidity for altcoin trading. NFT Autumn could follow the same path – but it’s alternative currencies with visuals and AMMs.

Liquidity is an essential financial building block, and a necessary component of any successful token (fetchable or not). It’s also a basic building block that was missing from the NFT ecosystem until the launch of Sudo AMM. It will be a small part of Sudowab Sudo supply Distributed to people who provided cash For the platform in the past (a la Uniswap), a move that may attract more liquidity to Sudoswap and AMM as it will attract speculators.

Tricky property question

This does not mean that Sudoswap’s rise to heaven is guaranteed. the society It has been engulfed in discussion About another advantage of the market – a royalties. The practice until now for some markets has been to allow creators to charge royalty fees (up to 10% in some cases) whenever their NFTs change in that market. In fact, this was one of the things that made crypto so exciting for creators – in theory, they get paid forever as long as there are new buyers for their art.

Sudoswap royalties have been cancelled. Instead, the protocol takes a 0.5% “trading fee” and allows forex collectors to trade at a much cheaper rate.

Statelayer (co-founder of Sudoswap) told me that he and his team are not surprised by the backlash in terms of returns. The real surprise (initially) was the creators who came to the platform specifically to mint their projects.

“We didn’t expect that,” Stateller said.

Why Sudoswap might be better for creators than royalties

It turns out that the advantage for the creator is to be the artist, the seller and mediator, if they do it correctly. In other words, the artist can act as an entrepreneur, launch her project on sudo, provide liquidity, and collect trading fees from the pool. This can amount to more than they would achieve in a traditional NFT sale.

The most successful group to attempt this approach so far has been the Sudonauts, by printskate. By launching through Sudo’s AMM, each sale of Sudonaut NFT adds liquidity to the pool, creating more liquidity and, dare I say, a less volatile market. This is great for collectors, giving them confidence that there will always be a buyer for their Sudonaut.

The Sudonauts project is only two weeks old. But the results are encouraging so far. Yes, the current minimum price is a modest 0.23 ETH, but it achieved a sales volume of 563 ETH. This gave the artist 40 ETH rank in trading fees from his liquidity pool. He also held 200 of his 2,000 NFTs for himself and his team to “demonstrate how artists can profit while providing deep liquidity to their group.”

The group’s total market capitalization is $590,000 – and there’s now $315,000 of liquidity to back it up. Along the way, it helps create a safer and healthier market for its collectors, with a system designed for longevity rather than hype.

Brentsketit declared the trial “definitely viable” in lieu of royalties, though he told me it “should be easier to use”.

Another intrepid explorer venturing into the depths of Sudoswap is John Patten, CEO of DAO . treasure. John recently posted a profile Blog post Outline of an upcoming NFT project called dao cats that you plan to launch via sudoAMM. DAO Cats refers to itself as an “experiment in DAO-owned IP”, but I’m more interested in its “Protocol-Owned Liquidity” plans. They are holding 40% of the total supply of Cats and Catcoin (a token that NFT holders can obtain by depositing their Cat NFTs in the DAOs vault) in liquidity pools, only to be removed if their owners vote to do so.

John’s goal with DAO Cats is to “create an NFT where much of the supply is hampered by the protocol to provide liquidity and, hopefully, create a more reliable land price.”

“Altcoins with Pictures” is a feature, not a bug

I think that sooner or later the creators will understand that “NFTs are just altcoins with pictures” is a perfectly fair summary – and that’s okay.

I’m not trying to trolling NFT collectors. Seeing NFTs in this framework opened my mind to a whole world of new possibilities for NFTs.

I’ll finish with a question: If you could go back in time to before the DeFi Summer, and know what you know now about what worked and what didn’t, what would you build? Answer that question, then go ahead and build it—but add the pictures.

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