How Does Sudoswap Work?

Sudoswap is a decentralized NFT marketplace that uses automated market maker (AMM) mechanics rather than traditional listings. Because this approach is different from most well-known NFT platforms, many users want to understand how Sudoswap works and what sets it apart. This article is for informational purposes only and does not constitute financial advice. As with any crypto or NFT platform, readers are encouraged to Do Your Own Research (DYOR) before using it.

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What Is Sudoswap?

Sudoswap is a decentralized marketplace designed for trading non-fungible tokens (NFTs) on Ethereum. Instead of relying on individual listings and buyers making offers, Sudoswap allows users to trade NFTs instantly through smart contract–based liquidity pools. These pools hold NFTs, cryptocurrency (usually ETH), or both, enabling automated buying and selling without the need for direct negotiation between users.

Within the broader NFT ecosystem, Sudoswap focuses on liquidity and efficiency. Its design aims to reduce friction in NFT trading by allowing users to transact immediately at algorithmically determined prices.

How Does Sudoswap Work?

At its core, Sudoswap applies AMM principles—commonly used in decentralized exchanges (DEXs)—to NFTs. Rather than matching buyers and sellers, the platform lets users interact with pools that automatically quote prices.

Anyone can create a pool by depositing NFTs, ETH, or a combination of both. Once the pool is live, other users can buy NFTs from it or sell NFTs into it. Prices update automatically based on predefined rules coded into the pool’s smart contract.

How Sudoswap Differs From Traditional NFT Marketplaces

Traditional NFT marketplaces typically use listing-based systems. Sellers list NFTs at fixed prices or accept offers, and buyers must choose whether to transact. This can lead to illiquidity, long waiting periods, and price uncertainty.

Sudoswap removes listings and offers entirely. Trades happen instantly against pools, similar to token swaps on decentralized exchanges. This model prioritizes speed and continuous pricing rather than negotiation.

What Are NFT Liquidity Pools?

NFT liquidity pools are smart contracts that hold assets and facilitate trades. A pool may contain:

• NFTs only (for selling)
• ETH only (for buying)
• Both NFTs and ETH (for two-sided trading)

The pool’s balance determines available liquidity. When someone buys an NFT, ETH goes into the pool, and an NFT leaves. When someone sells, the opposite happens.

How Pricing and AMM Curves Work

Sudoswap uses bonding curves to adjust prices automatically. A bonding curve is a mathematical formula that changes the price based on supply and demand.

For example, as NFTs are bought from a pool, the price may increase incrementally. As NFTs are sold into a pool, the price may decrease. Pool creators choose parameters such as starting price and price change per trade, which directly affect how the curve behaves.

Buying and Selling NFTs on Sudoswap

To buy an NFT, a user connects a compatible wallet, selects a pool, and swaps ETH for an NFT at the current quoted price. To sell, the user swaps an NFT for ETH from a pool that accepts that collection.

All transactions are executed via Ethereum smart contracts, and trades settle immediately once confirmed on-chain.

Fees and Costs to Consider

Sudoswap typically charges a protocol trading fee. In addition, pool creators can set their own fees, which are paid when users trade against that pool. Like all Ethereum-based platforms, users must also pay gas fees, which can vary depending on network conditions.

Who Might Use Sudoswap?

Sudoswap may appeal to users who value instant execution, liquidity providers seeking automated trading strategies, or traders interested in price-based arbitrage. It may be less suitable for creators or collectors focused on curated listings or long-term negotiation.

Sudoswap introduces AMM-based mechanics to NFT trading, offering a different approach from traditional marketplaces. By using liquidity pools and automated pricing, it enables faster, on-chain NFT transactions. As with any DeFi or NFT platform, users should understand the mechanics, risks, and costs involved, and conduct independent research before participating.