The sudoAMM is almost here.
Since the LSSVM blog post and December's tweet thread, we've made great strides in development, and we're gearing up for launch. This post is the first of several that will explain the protocol, $SUDO token, and what's going live.
What is sudoAMM?
The sudoAMM is a concentrated liquidity AMM protocol designed specifically for NFTs. Traders can enjoy low-slippage swaps between NFTs and tokens, and liquidity providers can better control the price ranges they LP for as well as set up dynamic buy/sell walls.
Unlike most other NFT marketplaces today, sudoAMM uses on-chain liquidity pools rather than off-chain order books. sudoAMM liquidity pools are different from those of e.g. Uniswap, and we will explain the differences in a later post. While this does add some gas overhead, we have been mindful in keeping these costs to a minimum. Deploying a new pool is around 180k gas, and your pre-existing pools can be reused when you want to buy/sell additional items.
In return, anyone can run their own front-end and indexer, allowing for a decentralization-focused approach. This also allows other on-chain entities like DAOs to more easily participate in NFT markets, opening up interactions like transparently setting up NFT buy walls on-chain.
Who's on the team?
The initial development team of sudoAMM consists of:
In addition, we're advised by:
Development and audits have been self-funded.
What about the code?
The smart contracts have been audited by both Spearbit as well as ABDK (report forthcoming). Both the smart contracts and the front-end will be released under AGPLv3, open-sourced on GitHub soon after public launch.
What will be live at launch?
The protocol will be open for anyone to create and trade with pools for any NFT at launch.
Traders will be able to:
- Swap NFTs for ETH
- Swap ETH for NFTs
Liquidity providers will be able to:
- Deposit ETH and receive NFTs as traders swap with your pool
- Deposit NFTs and receive ETH as traders swap with your pool
- Deposit both ETH and NFTs and receive trading fees as traders swap with your pool
As a trader, the experience is similar to other exchanges. You select which NFTs to sell or purchase, and the router gives you an instant quote.
As a liquidity provider, the experience is most similar to Uniswap v3. You select a price range to provide liquidity for, and then deposit your assets.
Technically, the sudoAMM contracts support the creation of any arbitrary ERC721/ERC20 pool. However, we will be supporting only ETH to start at launch to improve routing and liquidity across pools.
What about governance?
The sudoAMM protocol will be governed by the $SUDO governance token.
At public launch, the sudoAMM contracts will be governed directly by $SUDO holders, with no multisig from the dev team acting as an intermediary. The token will also be non-transferable at launch, with a transferability vote also being deferred to on-chain governance after launch.
For full $SUDO distribution details, we'll be releasing another post soon that explains the procedure for $XMON holders.
What about the existing sudoswap app?
There will be no changes to the existing sudoswap app. Users will continue to be able to perform multi-asset OTC trades with others with zero fees. However, with the launch of sudoAMM, the OTC site will move to its own domain at otc.sudoswap.xyz.
We'll be doing a gradual rollout throughout April with close community members to fully stress test the system, culminating in a full public launch. Please follow the sudoswap Twitter for the latest updates.