# SUDO Thesis

**Published by:** [Shula](https://paragraph.com/@shula/)
**Published on:** 2023-03-02
**URL:** https://paragraph.com/@shula/sudo-thesis

## Content

SUDO Thesis As the bear market progresses and most alts turn to vapor, opportunity converges on fewer and fewer projects that can provide real utility along a timeline that extends to the next bull market. Sudoswap is a novel defi primitive worthy of attention at this stage. ** ** Function Much like uniswap brought decentralized token trading, Sudoswap has done the same for NFTs. Following in this methodology, Sudoswap allows a ‘liquidity provider’ to set NFT prices along a curve as opposed to the classic system of bids and offers. In creating a liquidity ‘pool’ on Sudoswap, the market maker in an NFT set can determine how much they’d like price to move with subsequent buys/sales. It’s easy to see how this could be advantageous in a space where we have seen ‘floor prices’ of popular NFT sets moon and nuke with reckless abandon due in part to the clunky mechanics of the current top exchanges. By having liquidity laid out on a curve as opposed to archaic bids and offers, more efficient price discovery is achieved. ** ** Decentralized Sudoswap runs entirely on-chain, which has clear advantages. We’ve seen top centralized exchanges censor projects, frontrun customers, and experience frequent server downtime. Not to mention the regulatory scrutiny that can be leveraged on centralized entities that has yet to express itself in a poignant way, but has at least a small potential to be catastrophic. These are not concerns with Sudoswap. As ethereum is resistant to censorship so is Sudo. Crisp, Clean User InterfaceNFT Trading When larger players can better evaluate supply and demand at given prices by looking at the available liquidity pools, they can be more confident in their ability to get in and out of their positions. Wider scale adoption of SUDO pools attracts a class of trader whales that have traditionally been sidelined due to perceived lack of liquidity and opaque market structure. Some hesitancy no doubt revolves around the idiosyncratic nature of the supply/demand economics of NFT projects themselves, but to the extent that a portion of this is attributed to the mechanics of current market making, Sudoswap may help abate those concerns. ** ** Founder Bootstrapped It’s important to note that Sudo has received no outside funding. We can assume that the founding team was initially bootstrapped by the overwhelming niche success of the Xmon NFT project, a set of generative AI on-chain ‘monsters’ with accompanying lore. From the team's tweets we gather that the recent bull market has left them with profits that provide a healthy runway such that raising additional venture capital is a non issue. This year it has become clear that if VC’s are involved in an altcoin project they will mercilessly dump it as their mandate requires. In Sudo’s case, taking no VC funding leads to massively aligned incentives. With each protocol improvement they stand to gain massively from their own efforts. ** ** Sudo Token Launch The XMON token had its share of ups and downs over the last year and a half, and it became clear that it was hindered by both the difference in token name and project, and the unit bias as it traded in the 10s of thousands of dollars per token. In a market so heavily driven by narratives, it cannot be overstated how compelling it is that the SUDO token now represents the project in name, and is trading in single digit USD terms. When XMON became transferable to SUDO in mid February, price pumped into the event and sold off heavily after. Perhaps some larger holders took advantage of increased liquidity to get out of their positions. They could have seen confluence with a possible local top on the majors as reason to offload as well. Regardless, this presents the opportunity to accumulate at a more attractive price, and continue that accumulation if the market sells off more broadly.Volume Following the Ebbs and Flows of the NFT MarketTokenomics Significant percentages of the new SUDO token will go to treasury, team, and Sudo labs as shown below, but this inflation schedule isn’t that extreme and frankly is better than the early investor and VC packed projects of similar caliber (Blur, etc). Team tokens are vested over 3 years with a 1 year cliff and up to the point any team member decides to sell their tokens, they will have incentive to keep the price and project in good standing. At a fraction of the market cap of competing NFT exchanges, there is narrative in SUDO feeling like an overwhelming value. (roughly 50M at the time of publishing this piece)Sound Tokenomics** ** Looking Forward Acknowledgement of any flaws or features that have yet to be added is only bullish to the outlook of Sudoswap. It simply means that it's early, and token price reflects that. An investment at this juncture is a bet that the team will continue to execute on its vision as it has thus far, with the tailwind of an NFT market that stands to expand exponentially in the coming years. Possible catalysts of the future are numerous. Protocol updates, project partnerships, exchange listings, and a host of other business development initiatives have potential to bear fruit. Even just in recent days, amidst an uproar about exchange fees (which seem to be racing toward 0, as SUDO already is) , a crypto twitter user described their scheme where they laid out a liquidity pool of 50 NFTs of a particular set and was able to generate an incredible amount of revenue. A lightbulb moment for some, it’s clear we will see many more iterations of this strategy and others, made possible using Sudoswap’s liquidity curves.** ** In closing, being bootstrapped by themselves and fully on chain, SUDO appeals greatly to the true decentralized crypto ethos, speaking to the mission the team is committed to. In a space where it is so easy for pseudonymous developers to step back from their projects and sit on the profits they’ve made, Sudo developers have stayed visible and building. ** ** I hope this is enough to stoke some interest in the project. On a deeper level, the mechanics are brilliant and a host of additional information can be found on their docs page. ** References:** https://docs.sudoswap.xyz/ ** ** https://twitter.com/sudoswap ** ** https://dune.com/0xRob/sudoamm ** ** (Not financial advice) (I hold positions in the tokens mentioned)

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