Sudoswap AMM could change the way we trade NFTs forever.
In this video I go over the recent rise of Sudoswap and the innovations that they’re bringing to the table, including ways for people to create liquidity pool, set up buying strategies with custom price settings, and receive instant offers on NFTs that they own.
I’ll also touch on the most controversial part of the platform’s growing popularity – specifically their decision to ignore creator royalties, and what that might mean for the industry going forward.
follow me on twitter:
—
source:
sudoswap:
create a pool:
what is an AMM:
impermanent loss:
—
0:00 start here
0:33 Sudoswap history
0:55 Sudo AMM’s innovative features
3:52 liquidity pools (IMPORTANT)
4:58 big change 1
6:25 big change 2
7:03 big change 3
7:39 big change 4
8:58 new business model?
9:50 how fast this will all happen
Hey guys so the great thing about a bear Market is that even though Traders might Be crying on the sidelines because their Favorite jpegs are falling in price the Builders keep on building and every now And then something gets built that can Completely transform the nft space and Take us in a very new direction today I’m going to talk about one of those Moments that happened recently with a New product released by pseudo Swap and It’s one that has been gaining a ton of Traction especially in the last week or So so I’m gonna talk about what this Product is as well as the ways that the Nft market can change forever if it Continues to scale now pseudo swap has Been around for a while and mainly Collectors would use it for its OTC Traits okay so let’s say you had a Mutant ape and you wanted to trade it For somebody’s Moon bird just like for Like then you could do that or you could Take your mutant name and then say that You wanted to trade it for a cool cap Plus 15 eth you could do that as well And these are things that you normally Wouldn’t be able to do on an auction Platform like openc but in July they Announced a new product called sudo amm Which in in their words is a new Marketplace protocol that changes the Way we think about nft liquidity and Trading now at a glance pseudo amm
Doesn’t really seem that unique okay if You head to their website you’ll see That you can click on all collections And it seems like a normal marketplace Where you have your listings your floor Price and your best collection offers And if you click in on any of these Collections you’ll see that there’s a Bunch of listings that you can go by Individually and you also have this Suite mode where you can choose how many Nfts you want in one go so far it isn’t Anything we haven’t seen on openc or an Aggregator like gem right but there are Some unique features on sudo swap that When combined it can actually change the Game first off you have the fees okay Pseudo swap only takes a 0.5 percent fee Compared to Open Seas 2.5 percent and They also don’t honor Creator royalties Which depending on the collection could Be as high as 10 and this is a very Controversial point but we’re gonna get To that in a minute but this can all add Up to a lot of money for example let’s Say you were selling a doodle for 10 eth On open see well you will still need to Take into account the 2.5 fee that open C takes as well as the five percent Royalty that goes to the Doodles team Which means that at the end of the day You’re left with 9.25 each now if you Had sold that on pseudo swap you would Only pay 0.5 platform fee and you would
Avoid the royalties completely which Means you end up with 9.95 each which is A gain of 0.7 eth or about thirteen Hundred dollars second pseudoswap allows You to programmatically buy a large Number of nfts with your own price Settings meaning that you can dollar Cost average in and out of collections For example let’s say that you had 10 Floor nfts from the same collection that You wanted to sell well if you were on Open C then you would have to list each One individually one by one okay so you Might put one on the floor you might List one just slightly above that one And then slightly above that one and so On now if the floor price drop then you Would have to adjust the entire ladder And that’s time consuming even with 10 Nfts but imagine it with 50 or even a Hundred however with pseudo swap you can Make a pool with those 10 nfts and set It so that the price increases Automatically every time one of those 10 Nfts gets blocked so the 10 would Originally get listed at whatever price You set and if someone buys one of them Then the other nine automatically get Bumped up by whatever amount you set so Let’s say by 0.1 eth and if someone buys Another then the remaining ones increase In price again and so on and the same is True if you want a dollar cost average Into a collection okay so for example
Let’s say a certain collection has moon To an unsustainable level and I want to Catch it on the way down what I can do Is make a pool to buy 10 nfts starting With an offer just below the current Floor and if someone sells me that first Nft at that offer price then it Automatically reduces the next offer by 0.1 eth or whatever I selected and so on And so forth with each additional buy so These are called buy pools and sell Pools and already this is all pretty Interesting but there’s one more major Thing that you can do on sudo Swap and It might be the most Innovative part of The entire our platform and that’s Creating a two-sided liquidity pool so This is when you deposit both nfts and Eth and you’re simultaneously offering To buy more of the nfts from that Collection and at the same time you’re Offering to sell nfts as well what this Means is that you’re providing liquidity On both sides through what is called an Amm or automated Market maker and this Is something that originates from D5 and Protocols like uni Swap and in exchange For being a good Samaritan and providing All that nice liquidity you get the Opportunity to smash a like button Before anyone else so please swap that Gray button for a white one because it Really does help out the channel but Seriously what you get is the ability to
Collect fees on the spread as people Swap in and out of your pools and I’m Not going to go into a step by step on How to actually set up a pool but I will Point you to a great video by Gabrielle Haynes if you’re interested in learning More okay so now that you know what you Can do on sudo swap let me tell you why This can dramatically change the shape Of the nft market if it continues to Grow so big change number one so Judo Swap introduces instant cell liquidity For floor nfts okay so if we go back to The collection page on sudo swap you’ll See this column here which is called Best offer and what you’ll see is that In many cases the spread between the Best offer and the actual floor price is Very tight in some cases it’s just below Or even the same price so if we take a Look at base ghouls we can see that the Offer price is basically the same as the Floor and the offer is higher than what You would currently get on open seat This is all because more people are Being incentivized to create these Liquidity pools to actually earn fees And the offer so close to the floor Price because as we mentioned there are No royalties and the platform fee is Only 0.5 so if pseudo swap gets bigger And bigger and more people are providing Liquidity then you can see a future Where any given collection that you buy
Into as long as it has enough volume Should have an instant sell price where You don’t even need to list it on the Market and go through the undercutting Game and all that in other words if you Happen to I don’t know buy a few too Many pixel versus poops on a late Friday Night when you should have been working On a YouTube video instead well in the Future you’ll have a way to get out Quick if you need to now this is huge Because with higher liquidity it reduces The volatility that you’re used to Seeing in nfts today for example you may Have seen people undercut each other all The way down and a collection could lose 20 or 30 percent in an instant only to Then bounce back up and then back down Etc that tends to happen because it’s Hard for them to find liquidity and so They just start to panic okay big change Number two as we said nft Traders can Now earn fees by providing liquidity Which means that they can basically Become their own open sea or looks rare So if a Trader holds a big position in An nft collection then it probably makes Sense for them to earn a yield on those Nfts by entering into a liquidity pool If they think they can earn more on the Fees than versus the impermanent loss Which I’m not going to get into but I’ll Drop a link on that below and I know Realistically many of us are not going
To be creating liquidity pools but the Main benefit here is that we’re going to Be seeing a large number of big players Starting to enter the market especially Actually since they can now manage a Huge number of nfts in a very precise Manner and this is overall a net Positive for the space alright big Change number three we might start Seeing more liquidity for mid-rares in The future you see right now it’s common Wisdom to say that you should probably Buy two floor nfts instead of one Mid-rare from the same collection Because the mid-rare is going to be a Lot harder to sell okay the liquidity Concentrates around the floor but it’s Only a matter of time until we start Seeing trait based pools on pseudo swap Where let’s say you can select a pool by You know whether it has a hoodie or Glowing eyes or whatever and this means That more liquidity would be available For those mid rares and it could Generally change how whales approach These Collections and finally big change Number four is the fact that this could Be the beginning of the end for Creator Royalties you see the big secret that People try not to talk too much about is That the royalties are only enforceable At the marketplace level okay you might Be surprised to hear that royalties are Not encoded in the smart contract
Themselves and so you really just have Like open c see keeping track of Royalties in a web 2 database and then Paying out to artists manually this Means that since the beginning you had Ways to get around the royalties okay You could just OTC trade in nft with a Friend without using a Marketplace and That would be enough to avoid it but now With pseudo swap you can avoid the Royalties at the protocol level now Obviously this is a very controversial Point because it means that creators Just don’t get paid and this has been a Reliable and one of the biggest sources Of revenue for artists and roadmap Projects but the truth is that Regardless of your or my opinion on the Matter the market is going to do what The market does and unless you’re gonna Force this with some airtight smart Contract which I think is very difficult To do and I haven’t seen any proposals Gain traction for that then you can just Assume that people over time are going To choose to pay less you simply can’t Rely on people to pay extra taxes just Out of Goodwill because that has never Worked in real life and there’s no Reason to believe that it’s just going To start working here and now for the First time so then if we assume that Royalties are on the way out then this Changes the business model a lot right
And I think one alternative that could Rise in popularity is one in which Instead of royalties the team just keeps A larger percentage of the supply in This case they’re fully aligned with the Collectors because if the value of the Entities go up then so does the value of The 20 or 25 percent of the supply that The creators own one project that did This recently was eight aliens where They actually launched with zero percent Royalties and a bigger supply for the Team of course this solution isn’t Perfect because the team eventually has To dump those nfts in order to make some Money and so we just have to have some Adult conversations about the right way To do that but you could even make the Argument that this is a more aligned Model than royalties because with Royalties the Creator would benefit from Volatility regardless of what was Happening right like even if the price Was plummeting they would still make a Lot of money off of those trades okay That was a lot but to sum up we have Instant liquidity for floor nfts a way To earn fees and become your own Market Maker mid-rares might become more viable In the future and royalties might be Going away as a reliable source of Income now how fast this all happens is Difficult to predict but there are some Upcoming catalysts that could accelerate
Growth specifically pseudoswap is going To be integrated into aggregators like Gem which is now owned by openc as well As uni swap which acquired Genie earlier In the year so from the user perspective You might just start buying nfts listed On sudo swap without even realizing okay And because they have lower fees and More of these collection offers then You’ll probably get more competitive Pricing than any other platform finally It’s worth noting that unlike open C Pseudoswap is completely on chain Meaning that anybody can build on the Pseudo-protocol they can Fork it if they Want they can take the listings and put It somewhere else and so that Composability could lead to exponential Growth down the road all right guys That’s it for today thanks for watching And I’ll catch you the next video
3 Steps for Finding a Real Trading Edge
An overview of a 3-step process for researching and finding a real trading edge. The first in a series of articles essential for any trader in any market.
Socially Responsible Investing Goes Mainstream
Selecting investments based on both financial considerations and personal values is nothing new in the investment universe. But what was once considered a “fringe” strategy is becoming an increasingly mainstream approach. Today, there is an increased awareness that choosing opportunities now referred to as Sustainable and Responsible Investing (SRI) can create good investment value.
Is Your Money Safe?
What happens when one begins to find outside sources to invest their money in safely? There are hundreds of opportunities, but the ability to choose safe investments is non-existent. You can find ways to invest your money safely, but the safety you seek is in the mindset of the investor.
Powerful Market Timing Using Seasonal Tendencies
Usually the most powerful market timing techniques and methods are the easiest to employ, but often the most overlooked. One such method is using the seasonal tendency of price action.
Angel Investors In The Film Industry
There are many different types of investors and one of these is an ‘angel investor’. Angel investors for movie funding is an option you may wish to consider being a first time filmmaker or producer. An angel investor is a person who invests in the growth, normally in the beginning stages of a small project, or film in this case, by using his or her own personal disposable income.
