Sudoswap

Sudoswap is a decentralized automated market maker (AMM) protocol designed specifically for NFT-to-token swaps and vice versa. It enables users to trade NFTs from ERC721 and ERC1155 collections against ETH or ERC20 tokens through liquidity pools rather than direct peer-to-peer trades. This approach allows for instant swaps with prices dynamically adjusted by bonding curves, making the marketplace more liquid and efficient. Liquidity providers can create pools that buy, sell, or both buy and sell NFTs, setting initial prices and bonding curve parameters to capture trading fees and manage price movements.

The protocol supports three types of bonding curves—linear, exponential, and XYK (constant product)—which algorithmically adjust NFT prices based on supply and demand within each pool. This flexibility allows liquidity providers to tailor pricing strategies to their risk tolerance and market conditions. Sudoswap pools can be single-sided, holding only NFTs or tokens, or dual-sided, holding both assets to enable continuous swapping. The protocol treats all NFTs within a collection uniformly, pricing them identically regardless of token ID.

Sudoswap targets NFT platform developers and DeFi developers looking to integrate or build NFT liquidity solutions with minimal gas costs and customizable pricing mechanics. Developers can get started by creating liquidity pools via smart contracts, configuring bonding curves, and managing assets through the protocol’s open documentation. Sudoswap’s design lowers barriers to NFT liquidity and enables new market dynamics compared to traditional order book marketplaces.