key takeaways
- A new decentralized NFT exchange, Collection.xyz, is launching on Ethereum.
- Unlike first generation NFT marketplaces, Collection.xyz features an AMM mechanism.
- The protocol aims to make the buying and selling of NFTs more efficient.
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Collection.xyz seeks to make NFT trading a smoother experience thanks to its innovative automated market mechanism.
An essential building block
The NFT market is increasingly embracing DeFi components.
A new NFT decentralized exchange, Collection.xyzlaunches today on Ethereum.
Unlike first-generation NFT markets like OpenSea or LooksRare, Collection.xyz boasts liquidity pools and automated market maker (AMM) features, just like DeFi protocols like Uniswap or Curve. Users provide NFTs or ETH to these pools and receive tokens as rewards. This mechanism allows merchants, in turn, to automate the buying and selling of NFTs in bulk without intermediaries.
Collection.xyz also offers custom trading options, including the ability for traders to specify which NFTs they want to accept (for example, only NFTs with unique features, or super rare NFTs, or NFTs that trade above the minimum price). Users can also target specific NFT ID numbers within the collection.
“We developed Collection.xyz as an essential building block for the NFTFi industry,” said Collection.xyz co-founder Spencer Yang. By enabling composability between Collection.xyz and other protocols, users can create endless combinations and new transaction possibilities, such as securing the position of their liquidity pool to borrow, buy NFTs and pay later, or deposit their LP tokens with others. performance protocols to stack for performance. ”
Additionally, Collection.xyz aims to make “community-driven curation” a priority, which means that the protocol will seek to engage members of the NFT community in market-making activities. The decentralized exchange also claims to offer a solution to the NFT royalty debate by tying the royalty payment to liquidity in the creator’s collection funds.
Collection.xyz has been audited by ABDK Consulting, which has Uniswap, GMX, ZKSpace, CitaDAO and Sudoswap as some of its clients.
Disclaimer: At the time of writing, the author of this article owned BTC, ETH, and various other crypto assets.
