Sudoswap Overview
How Does Sudoswap Work?
Similarly to Uniswap, sudoswap users buy from or sell into liquidity pools instead of directly trading between themselves.
Here is an overview of how it works:
Liquidity providers deposit NFTs and/or ETH (or an ERC20 token) into liquidity pools. They choose whether they would like to buy or sell NFTs (or both) and specify a starting price and bonding curve parameters.
Users can then buy NFTs from or sell NFTs into these pools. Every time an item is bought or sold, the price to buy or sell another item changes for the pool based on its bonding curve.
At any time, liquidity providers can change the parameters of their pool or withdraw assets.
What Is A Liquidity Pool?
A liquidity pool is a smart contract that allows you to instantly swap between two assets. On sudoswap, the most common type of pool is an NFT<>ETH pool, which means that anyone holding NFTs from that collection can instantly swap them for ETH, or vice versa.
Pools use a bonding curve to determine the relative price at which one asset is traded for another. The more an asset is bought from the pool, the more expensive it becomes. Conversely, the more an asset is sold to the pool, the cheaper it becomes.
Sudoswap v2 Major Features
sudoAMM v2 introduces four new major features for users and creators:
Royalty support for ERC2981-compliant collections, plus fallback royalty solutions.
LP agreements called Settings whereby creators can opt-in to waive royalties for eligible pools.
On-chain property filtering powered by Merkle trees, tokenId ranges, or custom smart contract logic.
ERC1155 support.
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