Key points to remember
- A new decentralized NFT exchange, Collection.xyz, is launched on Ethereum.
- Unlike first-generation NFT marketplaces, Collection.xyz has 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 smoother with its innovative automated market mechanism.
An essential building block
The NFT market is increasingly adopting DeFi components.
A new decentralized NFT exchange, Collection.xyzlaunches today on Ethereum.
Unlike first-generation NFT marketplaces like OpenSea or LooksRare, Collection.xyz offers liquidity pools and automated market maker (AMM) functionality, just like DeFi protocols like Uniswap or Curve. Users contribute NFT or ETH to these pools and receive tokens as a reward. This mechanism allows traders, in turn, to automate the buying and selling of NFTs in bulk without intermediaries.
Collection.xyz also offers custom trading options, which include the ability for traders to specify which NFTs they want to accept (e.g. only NFTs with unique characteristics, or super rare NFTs, or NFTs that trade above the floor 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 collateralizing their liquidity pool position to borrow, buy NFTs and pay later or deposit their LP tokens in other yield protocols to stack yield. ”
Additionally, Collection.xyz aims to make “community-driven curation” a priority, which means the protocol will seek to involve 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 royalty payments to liquidity in creator collection pools.
Collection.xyz has been audited by ABDK Consulting, which includes Uniswap, GMX, ZKSpace, CitaDAO and Sudoswap as some of its clients.
Disclaimer: At the time of writing this article, the author of this article owned BTC, ETH, and several other crypto assets.