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Synthetic NFT Market
  • Overview
    • NFT Synthetic Markets Overview
    • What we do
    • Our Features
  • Use Cases
    • For NFT Collection Deployers
    • For Traders
  • Contracts
    • NFT Synthetic Market Contracts
  • Research Done
    • Liquidity Pool Research and AMM Comparison
    • Uniswap Comparison
    • NFT Liquidity Option Comparison
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  1. Research Done

NFT Liquidity Option Comparison

Comparison in table form

Name
NFTX
Sudoswap
Synthetic NFT Market

Features

Deposit NFT in a vault to mint a Synthetic Token (ERC20) that represents 1 random NFT in the vault.

This ERC20 can be put in a liquidity pool with another token and be traded freely.

The Synthetic token can be used to swap for a random NFT in the vault or swap for a chosen NFT in the vault at a premium - 1.05 Synthetic Token instead (it can be higher depending on the fee set in the vault)

You can

  • Buy NFT with ETH or other tokens (Buy synthetic token and swap for the NFT)

  • Sell NFT for ETH or other tokens (Mint 1 synthetic token and sell the synthetic token at the AMM)

  • Stake NFTs for vault fees (earning APR in the synthetic tokens)

    • Single Sided Staking

    • LP Staking (impermanent loss)

Basically Uniswap for NFTs.

Create an AMM (NFT/ERC20 Pool) for an NFT Collection. Can have multiple pools for one collection. Example:

  1. Pool A for common rarities,

  2. Pool B for rarer NFTs,

  3. Pool C for a certain trait of the NFT

Different type of bonding curves available

  • x*y = k

  • Linear (Price increase by flat amount when bought)

  • Exponential (Price increase by % when bought)

You can

  • Buy NFT with ETH or other tokens

  • Sell NFT for ETH or other tokens

Deposit NFT/ERC20 to get SYNTH/ERC20 LP tokens on a certain AMM.

Send SYNTH/ERC20 LP to contract to get back NFT/ERC20 after impermanent loss etc.

Note that SYNTH is the synthetic token that represents the NFT collection.

Limitations

  • You could lose the original NFT you used for minting the synthetic token

  • Not Shrimp-Friendly (Gas Fees staking and withdrawing might be more than yield)

  • Due to the nature of fractionalisation, some NFTs can become unredeemable if all the synthetic tokens are spread across different wallets / protocols.

  • Difficult for retail users to understand and setup

  • Lack of Incentive (for now)

  • Malicious liquidity providers can “rugpull”

  • Gas Fees

PreviousUniswap Comparison

Last updated 2 years ago

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