Trending Project: SudoSwap 📈

1. Name: SudoSwap
2. Sector: NFT - Exchange
3. Network: Ethereum
4. FDV: n/a
5. Hotness Rating: 🔥🔥🔥🔥

Tl;dr: A highly anticipated NFT exchange has launched.

• SudoSwap is a decentralized NFT marketplace. Originally an OTC trading platform created by the team behind the 0xMons project, SudoSwap recently launched the sudoAMM, an automated market maker which facilitates the trading of whole NFTs (rather than tokenized derivatives such as those issued by NFTX). The sudoAMM does this by enabling users to create liquidity pools with custom bonding curves, where users can buy, sell, or LP any ERC-721 token similar to how they would an ERC-20.
• Unlike order-book exchanges such as OpenSea, SudoSwap is an open, non-custodial protocol. The AMM charges a flat 0.5% fee for swaps, an 80% reduction relative to the 2.5% trading fee levied by OpenSea.

• Since launch, the sudoAMM has facilitated 137.70 ETH in trading volumes for a daily average of 19.67 ETH. The protocol also currently has an “offer TVL” (which measures the ETH locked in pools on the AMM) of 95.75 ETH across 59 different collections. This liquidity has been largely concentrated among 14 projects, which account for 87.79 ETH (~91.7%). The most liquid individual collection is Otherdeed, NFTs which represent ownership of land in the upcoming Otherside Metaverse, which has 26.5% of the total offer TVL at 25.39 ETH.
• Although SudoSwap has yet to reveal any specifics around plans to decentralized governance or launch a token, Owen, the project's lead developer, has previously suggested that holders of XMON, the utility token for 0xMons, will receive a “SUDO” allocation if/when the token goes live. Not confirmed though!

• The launch of the AMM, as well as speculation surrounding said allocation, may be driving the recent outperformance in XMON, which is up 196% over the past month compared to a 35% increase in the price of ETH. Furthermore, it appears as if savvy investors have been buying the dip, as Nansen smart money balances have risen 26% from 172 to 217 during this time.

Hotness Rating (🔥🔥🔥🔥/5):

• SudoSwap’s AMM is an exciting and potentially disruptive new NFT primitive. Although the DEX has seen a small amount of usage to date, there are potential catalysts on the horizon which can fuel growth, such as integrations with NFT aggregators like Gem and Genie. While it is unclear if holders will receive a SUDO allocation, investors who want to use XMON as a warrant type-instrument should keep the token on their radar.