ArtDEX by Genius Contracts - A Pool Based NFT DEX for High Frequency Trading
Currently in beta, ArtDEX allows for automated regulation of prices on NFT marketplaces.
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Editorial note: The following article contains discussion of Decentralized Finance (DeFi). DeFi refers to a relatively new financial system based on blockchain, that decentralizes the infrastructure, processes, and technologies used in traditional financial transactions. As such, when it comes to DeFi, the regulatory framework that exists around traditional finance is incomplete and evolving. It is important that readers do their own research, and understand that coverage of DeFi products and services on Spotlight does not constitute endorsement by either the Spotlight editorial board, Blokhaus Inc, or any affiliated organizations.**
Genius Contracts, the Tezos development team behind the ecosystem/product line, has released a testnet beta version of - a pool-based NFT DEX.
The SalsaDAO (sDAO) ecosystem comprises a variety of interoperable dApps governed by the sDAO community, including the Spicyswap DEX, Matter DeFi, the SalsaDAO gaming hall, and a unique line of fully on-chain dynamic NFTs. The team started their building journey with an experimental line of on-chain NFT tacos and on-chain games in early 2021. Now, after an intensive foray into base-layering their DeFi applications over the past year, Genius Contracts has come full-circle back to NFTs with a beta release of their new Art DEX (previously NFT DEX).
Current NFT marketplaces are set up in such a way that in order for an NFT to sell at a certain value, a user must manually set the price point of an NFT they own and then publish a listing. Collectors can then either purchase the NFTs directly from the owner who posts the listing, or otherwise they can set an offer, and it is up to the owner to accept or reject the offer. In the case of popular collections that consist of unique 1/1 pieces (which tend to produce rarity markets), values and price floors are thus manually regulated by each individual owner listing their NFTs at what they determine to be the fair market value.
With the new SalsaDAO ArtDEX, the traditional mechanism whereby NFT marketplaces regulate values manually, changes to one that can be automated. On this model, users can create pools (akin to fungible token liquidity pools) that either buy or sell NFTs on their behalf.
The SalsaDAO [ArtDEX] is a pool-based NFT marketplace, where users can trade NFTs for tokens using custom bonding curves instead of simple offers & listings. This project is inspired by sudoswap, and we’ve charged it up with extra features only possible on Tezos - Geniuscontracts
Customized bonding curves allow users to set the rate at which NFTs leaving or entering the pool either increase or decrease in price. These bonding curves can be either linear or exponential.
With linear bonding curves, prices can be set to increase or decrease at a constant rate of, e.g. 1.5 tez each, where each piece purchased from the pool makes the next piece go up by a price of 1.5 tez. With exponential bonding curves, prices can be set to increase or decrease at a rate which grows exponentially, e.g. at 2x the price of the previously purchased piece. The SalsaDAO NFT DEX in its current beta form only has linear bonding curves enabled.
The NFT DEX is currently in beta. You can test it out here, and if you’re interested in learning more, check out Genius Contract’s latest medium blog on the NFT DEX. There is currently no date set for the mainnet release.