seacows.ethOptimising NFT Liquidity: A Case Study of Blur, Sudoswap, and SeaCows
It is well known that the NFT market suffers from low matching efficiency due to NFTs being indivisible, having limited quantities, rarity differences (delta), and difficulty finding a uniform price. This leads to a big bid-ask spread and insufficient trading depth. Central limited order book marketplaces like Blur and NFT AMMs like Sudoswap aim to address this issue. However, SeaCows has the potential to be the ultimate solution for NFT liquidity provision in the Web3 world and can transform...
seacows.ethTrue on-chain gaming
When asked about the household names of web3 gaming, you would expect to hear of Illuvium, Star Atlas, BigTime or GalaGames. Yet you might be surprised that none of them exhibit fully on-chain gameplay. One could even categorise them as web2.5 or NFT games. While this may initially sound provocative, true on-chain gaming is something completely different than you think.The premise of on-chain gamingImagine a game where the entire back end sits on the blockchain. We are talking about every sin...
seacows.ethA hybrid NFT AMM model - AI-driven pricing
We previously discussed the usability of an NFT AMM (Automated Market Maker). In this post, we explain how the SeaCows NFT AMM protocol handles NFT pricing. The following assumed a good understanding of AMMs and liquidity pools.The status quoTo automate NFT trades two things are required. Essential liquidity and automated pricing. To provide the former existing NFT AMMs have adopted the now common notion of liquidity pools. In regards to the latter, other protocols such as sudoswap have sugge...
World's first decentralized NFT AMM powered by AI-driven price oracles.
seacows.ethOptimising NFT Liquidity: A Case Study of Blur, Sudoswap, and SeaCows
It is well known that the NFT market suffers from low matching efficiency due to NFTs being indivisible, having limited quantities, rarity differences (delta), and difficulty finding a uniform price. This leads to a big bid-ask spread and insufficient trading depth. Central limited order book marketplaces like Blur and NFT AMMs like Sudoswap aim to address this issue. However, SeaCows has the potential to be the ultimate solution for NFT liquidity provision in the Web3 world and can transform...
seacows.ethTrue on-chain gaming
When asked about the household names of web3 gaming, you would expect to hear of Illuvium, Star Atlas, BigTime or GalaGames. Yet you might be surprised that none of them exhibit fully on-chain gameplay. One could even categorise them as web2.5 or NFT games. While this may initially sound provocative, true on-chain gaming is something completely different than you think.The premise of on-chain gamingImagine a game where the entire back end sits on the blockchain. We are talking about every sin...
seacows.ethA hybrid NFT AMM model - AI-driven pricing
We previously discussed the usability of an NFT AMM (Automated Market Maker). In this post, we explain how the SeaCows NFT AMM protocol handles NFT pricing. The following assumed a good understanding of AMMs and liquidity pools.The status quoTo automate NFT trades two things are required. Essential liquidity and automated pricing. To provide the former existing NFT AMMs have adopted the now common notion of liquidity pools. In regards to the latter, other protocols such as sudoswap have sugge...
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In our previous blog post, we dived into the SeaCows protocol and what it can do. In this follow-up post, we dive into its usability.
AMMs can be powerful. Protocols such as Uniswap, Curve, and Balancer have defined DeFi, yet NFT AMMs are an entirely different beast and offer innovation in entirely new ways. But how…?
The Seacows AMM connects two groups: traders and liquidity providers (LPs). These groups can buy and sell NFT assets or add and remove liquidity from the protocol.
In order to acquire an NFT asset, traders can explore available pools as can be seen below. These pools contain at least one NFT along with ERC20 Tokens. Liquidity pools not only allow traders to make an instant purchase decision at a predetermined price but also enable fully decentralised peer-to-pool transactions.
In our previous blog post, we dived into the SeaCows protocol and what it can do. In this follow-up post, we dive into its usability.
AMMs can be powerful. Protocols such as Uniswap, Curve, and Balancer have defined DeFi, yet NFT AMMs are an entirely different beast and offer innovation in entirely new ways. But how…?
The Seacows AMM connects two groups: traders and liquidity providers (LPs). These groups can buy and sell NFT assets or add and remove liquidity from the protocol.
In order to acquire an NFT asset, traders can explore available pools as can be seen below. These pools contain at least one NFT along with ERC20 Tokens. Liquidity pools not only allow traders to make an instant purchase decision at a predetermined price but also enable fully decentralised peer-to-pool transactions.
Once decided on the desired pool, the buying process is as easy as selecting an arbitrary amount of NFTs, confirming the swap and ultimately paying for it/them. NFT tokens are taken out and ERC20 tokens are deposited into the pool.
Similarly, the selling process is equally simple. In case you own NFTs that are part of a collection of a created pool, you can select and instantly sell an arbitrary amount of NFTs. As a return, you will receive an indicated amount of ERC20 tokens that are part of the pool. ERC20 tokens are taken out and NFT tokens are deposited into the pool.
In case there is no available pool to which your NFTs can be sold, you can become a liquidity provider and earn.
Liquidity providers (LP) create the liquidity pools that traders can interact with. As a result, they receive trading fees as traders swap with their pool.
LPs add liquidity by depositing a token pair of ERC20 tokens and NFT tokens. In the process, they define a price range within which the NFTs are being traded. Whenever traders interact with the pool, the price is affected. However, it cannot go past the set price range. This enables a high amount of liquidity while protecting the liquidity provider. After creating the pool, any LP can add additional liquidity, or remove the liquidity they have contributed.
In order to remove liquidity, the LP can simply select the items inside the pool to be taken out and deposited back in their wallet. Important to note, that when removing liquidity LPs have to consider the pool’s balance in order for it to function (i.e. when taking out 5 NFTs only the corresponding amount of ETH can be taken out).
The core features explained above define an NFT AMM. They offer a higher degree of liquidity as well as more ownership to liquidity providers. And this is just the start…
Its decentralised and permissionless nature will initiate a new era of NFT ownership and interoperability.
On the 30th of August, we will be launching our testnet version. As part of our selected test partners, you will be able to try out all the functionalities above. Make sure to follow our Twitter and reach out to us via Telegram.
You can also check out: seacows.io
Once decided on the desired pool, the buying process is as easy as selecting an arbitrary amount of NFTs, confirming the swap and ultimately paying for it/them. NFT tokens are taken out and ERC20 tokens are deposited into the pool.
Similarly, the selling process is equally simple. In case you own NFTs that are part of a collection of a created pool, you can select and instantly sell an arbitrary amount of NFTs. As a return, you will receive an indicated amount of ERC20 tokens that are part of the pool. ERC20 tokens are taken out and NFT tokens are deposited into the pool.
In case there is no available pool to which your NFTs can be sold, you can become a liquidity provider and earn.
Liquidity providers (LP) create the liquidity pools that traders can interact with. As a result, they receive trading fees as traders swap with their pool.
LPs add liquidity by depositing a token pair of ERC20 tokens and NFT tokens. In the process, they define a price range within which the NFTs are being traded. Whenever traders interact with the pool, the price is affected. However, it cannot go past the set price range. This enables a high amount of liquidity while protecting the liquidity provider. After creating the pool, any LP can add additional liquidity, or remove the liquidity they have contributed.
In order to remove liquidity, the LP can simply select the items inside the pool to be taken out and deposited back in their wallet. Important to note, that when removing liquidity LPs have to consider the pool’s balance in order for it to function (i.e. when taking out 5 NFTs only the corresponding amount of ETH can be taken out).
The core features explained above define an NFT AMM. They offer a higher degree of liquidity as well as more ownership to liquidity providers. And this is just the start…
Its decentralised and permissionless nature will initiate a new era of NFT ownership and interoperability.
On the 30th of August, we will be launching our testnet version. As part of our selected test partners, you will be able to try out all the functionalities above. Make sure to follow our Twitter and reach out to us via Telegram.
You can also check out: seacows.io
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