Collection.xyz launches NFT Decentralized Exchange (DEX) protocol on Ethereum mainnet
Automatically buy, sell & earn yield on your NFTs with Collection.xyz!
Collection.xyz, an NFT decentralized exchange (DEX) protocol with innovative automated market maker (AMM) features, has launched on the Ethereum mainnet. With Collection.xyz, users can create liquidity pools with NFTs and ETH to automate buying and selling of NFTs without intermediaries. Anyone can buy and sell NFTs instantly from the pools on a simple app interface.
A key drawback of current orderbook-based platforms is the inefficiency of price discovery and trading. The launch of Collection.xyz solves these inefficiencies within the decentralized NFT finance space by enabling automated, highly customized trading options. When creating liquidity pools, users can specify the NFT tokens they want to accept, enabling granular choices such as excluding marked NFTs, or specifying parameters like only accepting NFTs with unique traits, super-rare NFTs, or NFTs above the floor. With these advanced controls, including targeting individual token IDs within a collection, users can execute automated trading strategies with ease — without having to wait for a counterparty. Given the direct interactions among market participants within liquidity pools, there is also a more dynamic and accurate price discovery process.
Historically, NFT communities have had no tools to partner with their community in providing liquidity. Now, given the team’s experience in launching community-based projects such as The Mutant Hideout for Mutant Ape Yacht Club holders, Collection.xyz has made community-driven curation a priority. By involving the community in market-making activities, profits are shared among users, rather than concentrating them in the hands of centralized market makers. It is also a boon to projects engaging with their communities. Furthermore, all Collection.xyz users can browse its “Hotlists” to generate ideas about curated filters to customize their pools, keeping up with what’s currently popular or most-liked in the NFT space.
Collection.xyz also offers a unique solution to the issue of compressing royalties that creators face today. NFT project creators can use the Draw vault to incentivize liquidity and royalty paying for their collections. Creators can deposit NFTs or ERC-20 tokens into the vaults and eligible liquidity providers will receive rewards proportional to their liquidity contribution. As the liquidity for the protocol increases, the creators also get paid royalties, and the community gains more future initiatives. It’s a win-win situation for everyone within the NFT community.
“We developed Collection.xyz as an essential building block for the NFTFi industry. By enabling composability between Collection.xyz and other protocols, users can create endless combinations and new transaction possibilities such as collaterizing their liquidity pool position to borrow against, buying NFTs and paying later or depositing their LP tokens in other yield protocols to stack for yield,” said Spencer Yang, co-founder of Collection.xyz. “Our ethos is to make Collection open, permissionless, and composable, so more developers can build critical user experiences that power the future of NFTs. We are excited to collaborate on new and exciting NFT applications, and can’t wait to see what NFT collectors collect with Collection.xyz.”
The protocol has been successfully audited by ABDK Consulting, which counts Uniswap, GMX, ZKSpace and CitaDAO as some of its clients. Collection.xyz is a confirmed launch partner for Base by Coinbase, an Ethereum Layer 2 (L2) network.
Collection.xyz will have the following features at launch:
- Buy and sell NFTs instantly on the platform.
- Create pools and provide liquidity for any collection.
- No protocol fees.
- Tokenized ownership of pools (LP Token); users can collateralize and transfer the LP token to any address of choice.
- Integration with various NFT marketplace aggregators to enable users to trade through their apps.
- Customize the royalties to creators when liquidity providers set up pools; Collection.xyz’s app defaults to honoring full royalties.
- Support for these ERC20 tokens: Ethereum (ETH), Wrapped Ethereum (WETH), Dai (DAI), USD Coin (USDC), Tether (USDT), ApeCoin (APE).
- Create incentive vaults with Collection Draw to reward liquidity providers with NFT or token rewards. Creators can launch new collections based on the liquidity provided to NFT collections. ERC-20 tokens can also be distributed as an incentive and used as a form of token issuance.
With the launch of Collection.xyz on the Ethereum mainnet, collectors can efficiently collect their desired NFTs, set automated strategies, and earn yield. NFT projects now have new tools to reward liquidity providers, earn more royalties, and launch new collections and tokens to the benefit of their communities.
Going forward, the Collection.xyz team plans to improve the trading experience, further reducing gas consumption, and increasing chain coverage. Collection.xyz provides a fundamental building block for the NFT DeFi ecosystem with the ease of integration with its protocol, serving a wider variety of use cases than had been possible before.
Collection NFT DEX is now live on Ethereum mainnet!
Have a bag of NFTs & want to LP? DM the Collection.xyz team on Twitter/Discord and we’ll craft a custom LP strategy for y’all 🛎️
Additional Resources:
- Collection Docs: https://docs.collection.xyz/
- Collection Whitepaper: https://docs.collection.xyz/guides/collection-1-nft-dex-to-automatically-buy-and-sell-nfts-you-desire/the-collection-whitepaper
Updated as of Apr 4, 2023 by Collection.xyz
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