ARTDEX Review: AMM for NFT

parimalJune 23, 2022

ARTDEX Review: AMM for NFT

We figure out how Artdex works, than it is better than ordinary marketplaces and what functions will simplify the life of artists, collectors and flippers.

How ArtDex works

ArtDex is DEX for NFT exchange for tokens using curves. Like Spicyswap, Quipuswap or Plenty Gagarin News , but for NFT.

Genius Contracts developers were inspired by a similar Sudoswap protocol on Ethereum. It is quite popular: the average amount of operations per day is $ 500,000.

Sudoswap exchanges NFT in liquidity pools using custom binding curves – Bonding Curves. In general, as in ordinary AMM, only instead of the formula k = x × y is used an exponent.

When buying NFT in such a bullet, the price of token grows by x% (delta) from the current price. X% – fixed value. Suppose liquidity provider created a pool with 10 TEZ and set the delta 20% (1.2). If Alice and Bob are bought one token, the price will first rise to 12 tez (10 × 1.2), and then to 14.4 tez (12 × 1.2).

The advantage of NFT trading in pools is in constant liquidity. On a regular marketplace, the user is forced to look for a counterparty to execute a transaction, in fact-to look for liquidity as on a P2P market. And on ArtDex liquidity NFT and tokens is constant: you can always buy something or sell something.

How to use ArtDex

NFT trading on ArtDex begins with the creation of a pool. There are three types of them:

  • NFT for tokens – the user brings only tokens so that other people sell NFT to the selected collection;
  • Tokens for NFT – the user only makes NFT so that others buy them;
  • At the same time, NFT and tokens – the user makes both types of assets so that others sell in the pool and generate the creator of trade commissions.

The pools take tokens only the selected collection. This is convenient for the current NFT market with popular generative collections of hundreds and thousands of tokens.

It turns out that the user can buy or sell NFT in any of the pools for the desired collection. If there is a lot of NFT in the bullet, he chooses which one wants to get for the current price.

Pulas in theory can be used as proposals on ordinary marketplaces. If the user has a rare and truly valuable token, he can create a pool specifically for its sale and set his price.

Accordingly, the prices of NFT of one collection are very different if several pools are created for it.

ArtDex released 3 test collections for testing: Testtaco, Testbox and TestCard. For each collection there are at least three different pools so that users can test the functionality and create their own pools.

From the interesting about the commissions – when creating trading pools, users will be able to install their own commission for the pool. In addition, they will receive income every time the transaction is performed in their own pool. The commissions are divided equally: half will go to the holders of the Native GC token, and half – to the SDAO holders through the Artdex steaking.

By the way, Beta will end with a bonus event dedicated to launch Artdex. During this event, part of the ARTDEX commission from GC will be sent to SALSADAO NFT holders.

SALSADAO plans for NFT and sauces

Genius Contracts plans to add three functions to ARTDEX to increase the convenience of work:

  • Collection Offers & SWEEPS: instant search for the cheapest NFT and a sentence for the entire collection in one click.
  • Pool management: entering assets, removing blocked tokens and http://coin-graph.website/?p=1048 custom setting of pricing parameters.
  • Omni-Search: Search throughout the ecosystem in any Tezos market.

The team also plans to release three own collections before the ARTDEX release: NFTTREES, Timepieces and Red and Green Salsa. They will be dynamic: the trees will grow, bear fruit and look different depending on the time of year in real life. The clock will show the real time. And the label marks the first step to the offer of physical products Salsadao. The platform even announced plans to organize the delivery of branded sauces!

All funds raised from NFT collections will go to conduct an audit of the project smart contracts.

conclusions

ArtDex is an interesting idea for the NFT transist TEZOS. The site should appeal to collectors, because on it they will be able to buy a token they like at a fixed price or sell it without a long search for a buyer. The authors of NFT will also win: on tokens sales, they will be able to earn liquidity to launch a full commercial pool, and then get trading commissions as if it were royalties.

In theory, it will even be possible to arbitrate NFT against proposals on ordinary marketplaces on ArtDex. Flipper will definitely like it.

If you want to help Genius Contracts develop and improve ArtDex – go to the application, test it and leave the feedback in the Discord community.

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