What is Mew-O?
Mew-O Collection
Mew-O Collection is an NFT collection of cosmic cats. Details about this NFT collection include:
Total Supply 5000 NFTs
5000 NFTs are minted in three Rounds:
1
For OzOzOz Passport
TBA
10 APT
2
For Mew-O Whitelist
TBA
TBA
3
Public
TBA
TBA
Mew-O DEX
The Mew-O AMM DEX (or Mew-O) is a simple gas-efficient automated market maker (AMM) protocol that enables NFT-to-token swaps (and conversely) through customizable bonding curves. In the future, Mew-O will support Aptos and Sui NFTs and many other types of NFT tokens.
Liquid providers (LPs) can deposit assets into single-sided buy/sell pools or dual-sided trade pools, which buy and sell NFTs with an optional spread to capture trading fees.
Like other floor NFT protocols, Mew-O does not distinguish between different token IDs. Pools willing to buy or sell NFTs will return the same price regardless of which NFT is sent into or out of the collection.
How Does Mew-O DEX Work?
Mew-O is an AMM protocol for NFTs, which means that instead of trading directly between themselves, users buy from or sell into liquidity pools. If you've heard of Uniswap, this is a similar concept but for NFTs.
This is how it works:
Liquidity providers fund liquidity pools with NFTs and APT (or an Aptos token). They specify whether they want to buy or sell NFTs (or both) and a starting price and bonding curve parameters.
Users can then buy or sell NFTs from these pools when Collection an item is purchased or sold, the pool's price to buy or sell another item changes based on its bonding curve.
Liquidity providers can change the parameters of their pool or withdraw assets at any time.
What Is Mew-O Liquidity Pool?
A pool, also known as a liquidity pool, is a smart contract that allows you to swap between two assets instantly. The most common type of pool on Mew-O is an NFT>APT pool, which means that anyone with NFTs from that collection can instantly swap them for APT or inversely.
A bonding curve is used by pools to determine the relative price at which one asset is traded for another. The more assets purchased from the pool, the more expensive they become. In contrast, the more assets sold to the pool, the cheaper they become.
A pool should ideally contain some of both assets, allowing users to switch back and forth between them. However, it is also possible to create a pool with only one asset, in which case users can purchase that asset from the pool. A bonding curve is a mathematical formula defining the relationship between an asset's price and supply. Bonding curves are a crucial feature of automated market makers since they are used to adjust asset prices algorithmically.
Mew-O recognizes three bonding curves: linear, exponential, and X*Y=K.
Linear Bonding Curve
A linear bonding curve raises the price of an NFT by a fixed amount (called Delta) each time an item is purchased from the pool. When an item is sold to the pool, the price of the NFT is reduced by the same flat amount.
A liquidity provider, for example, may establish an NFT>APT pool with a Start Price of 1 APT and a Delta of 0.1 APT. If they provide sufficient liquidity, the price of an NFT will rise to 1.1 APT after purchasing one item from the pool. When a second item is purchased, the price will rise to 1.2 APT, and so on. If an NFT is sold to the pool at any time, the price will fall by 0.1 APT.
Exponential Bonding Curve
An exponential bonding curve raises the price of an NFT by a certain percentage (also known as delta) each time an item is purchased from the pool. When an item is sold to the pool, the price of the NFT decreases proportionally.
To determine the equivalent decrease, convert the percentage to a decimal index (e.g., 1.5 for 50%) and divide the price by this number.
A liquidity provider, for example, may establish an NFT>APT pool with a Start Price of 2 APT and a delta of 50%. If they provide sufficient liquidity, the price of an NFT will rise to 2 + 50% = 3 APT after purchasing one item from the pool. When a second item is purchased, the price will rise to 3 + 50% = 4.5 APT, and so on. The price will be reduced. by 1.5 when an NFT is sold to the pool
X*Y=K Curve
The price of an NFT is adjusted by an X*Y=K curve every time an item is bought from or sold to the pool so that the product of two virtual reserves remains constant after each trade. These virtual reserves correspond to the number and value of NFTs purchased or sold by the pool.
Liquidity providers can adjust (tighten or loosen) X*Y=K curves using an additional concentration parameter.
Please see the section X*Y=K curve for more information on how they work.
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