What is Sudoswap?
Sudoswap ($SUDO) is a concentrated liquidity AMM protocol designed specifically for NFTs. It is launched on July 2022 by anonymous developer 0xmons, zefram.eth, and 0xhamachi.
Traders can enjoy low-slippage swaps between NFTs and tokens, and liquidity providers can better control the price ranges they LP for as well as set up dynamic buy/sell walls.
Unlike most other NFT marketplaces today, sudoAMM uses on-chain liquidity pools rather than off-chain order books. sudoAMM liquidity pools are different from those of e.g. Uniswap, and we will explain the differences in a later post. While this does add some gas overhead, we have been mindful in keeping these costs to a minimum. Deploying a new pool is around 180k gas, and your pre-existing pools can be reused when you want to buy/sell additional items.
In return, anyone can run their own front-end and indexer, allowing for a decentralization-focused approach. This also allows other on-chain entities like DAOs to more easily participate in NFT markets, opening up interactions like transparently setting up NFT buy walls on-chain.
What can be used in Sudo?
The protocol will be open for anyone to create and trade with pools for any NFT at launch.
Traders will be able to:
- Swap NFTs for ETH
- Swap ETH for NFTs
Liquidity providers will be able to:
- Deposit ETH and receive NFTs as traders swap with your pool
- Deposit NFTs and receive ETH as traders swap with your pool
- Deposit both ETH and NFTs and receive trading fees as traders swap with your pool
As a trader, the experience is similar to other exchanges. You select which NFTs to sell or purchase, and the router gives you an instant quote.
As a liquidity provider, the experience is most similar to Uniswap v3. You select a price range to provide liquidity for, and then deposit your assets.
Technically, the sudoAMM contracts support the creation of any arbitrary ERC721/ERC20 pool. However, we will be supporting only ETH to start at launch to improve routing and liquidity across pools.
SUDO Governance & Distribution
The sudoAMM protocol will be governed by the $SUDO governance token.
The token will be non-transferable, with a transferability vote also being deferred to on-chain governance after launch.
For full $SUDO distribution details, we'll be releasing another post soon that explains the procedure for $XMON holders.
The initial supply distribution of SUDO is as follows:
Initial supply: 60M SUDO
$XMON holders: 25.12M, 41.9%
0xmons NFT holders: 0.9M, 1.5%
Retroactive LP airdrop: 0.9M, 1.5%
Treasury: 15.08M, 25.1%
Initial team members: 9M, 15%, vested over 3 years with a 1 year cliff
SudoRandom Labs: 9M, 15%, vested over 3 years with a 1 year cliff