Introduction to NFT AMM/DCA
JewelSwap introduces an innovative Automated Market Maker (AMM) model specifically designed for an NFT marketplace, aimed at enhancing both liquidity and the overall trading experience for NFTs. The platform allows users to trade and exchange NFTs efficiently, employing liquidity pools in a manner akin to cryptocurrency trading on standard DEXs.
Users have the ability to trade and exchange NFTs using liquidity pools through JewelSwap, similar to how one would trade and exchange cryptocurrencies on a regular DEX.
A standout feature of JewelSwap is the integration of Dollar Cost Averaging (DCA) in buy/sell transactions. This approach strategically spreads out the purchase or sale of NFTs over time, reducing investment risk by minimizing the impact of volatility in NFT prices.
The AMM system in JewelSwap is pivotal in increasing immediate liquidity for NFTs, simplifying the process for users to swiftly buy or sell their assets. The platform offers a user experience similar to token swapping on platforms like Uniswap, xExchange, or Ashswap. However, JewelSwap uniquely enables users to swap and trade NFTs, supporting both single-side and two-sided liquidity pools. The latter is particularly beneficial for market makers who wish to provide liquidity and earn trading fees.
The two-sided pools allow classic liquidity provision so that other users can trade NFT<>EGLD trading pairs.
The sigle-sided pools allow users to set up buy/sell pools, which are the ideal solution for DCAing into or out of NFTs. These pools do not suffer from impermanent loss.
Some of the key features of JewelSwap's NFT AMM DEX are:
A minimal platform trading fee of 1%. This fee is deducted from the profits of the pool creator. This means the 1% trading fee is not on the volume traded, but merely deducted from the revenue of the pool creator!
Flexible DCA buy/sell options, where users can set their own bonding curve parameters. This feature allows users to automate their investment strategy according to predetermined price levels, enabling a more customized and potentially more profitable investment experience.
The opportunity to earn EGLD, as trading fees for participating in two-sided liquidity pools. This incentivizes users to contribute to the market's liquidity, by becoming a market marker, fostering a more robust and efficient trading environment. Users can create their own pool with fully customizable fees and bonding curve.
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