Why NFT AMM DEX ?

Market Makers are critical to NFT.

Market Makers or Liquidity Providers provide liquidity to buyers and sellers in a financial market so that customers can trade assets without impacting their pricing. They aid in the determination of asset prices and the regulation of the crypto or NFT market.

NFTs are illiquid due to their uniqueness. Thus it may take some time to locate customers. Certain NFTs may be popular with some collectors but not with others. Collectors typically have a preference for a specific type of asset. A collector, for example, may love a punk with a cigar, while another may prefer a punk with a cap. How can you locate consumers for 9999 unique blockchain items?

NFTs may have had rapid growth in 2021. Nonetheless, liquidity and pricing challenges keep it from becoming totally mainstream. Impulse purchases, enthusiasm, and exhilaration typically propel the embryonic sector. The final price paid for an NFT is frequently determined by the buyer's subjective choices rather than the interaction of supply and demand.

Cryptos, as opposed to NFTs, can be easily traded on the market because their prices are fixed, and they have more excellent utility and demand. NFTs, on the other hand, face the challenge of inaccurate price determination and valuation.

The difficulty in determining NFT prices is frequently influenced by their low transaction volume and extreme price fluctuations. Whether manipulated or not, price fluctuation is common in the NFT market and contributes to NFT illiquidity.

In addition, here is some crucial element that NFT AMM could bring to the NFT holders and traders:

• Lower entrance barrier: NFT AMM lowers the user’s entrance barrier (buying and selling), and education costs are meager.

• Instant liquidity: can exit at any time.

• NFT - LP is efficient and flexible because it directly participates in market making and has higher rates. Pool parameters (such as the LP fee, buy and sell tax, and price discovery methods) can also be customized. NFT - FT LP is efficient and flexible because it directly participates in market making and has higher rates. Pool parameters (such as the LP fee, buy and sell tax, and price discovery methods) can also be customized.

• New NFTfi building blocks: takes advantage of combinability and can be used as the NFTfi, gamefi project marketplace's underlying infrastructure.

• Another type of inducement: the previous model was overly simplistic and unsustainable. The NFT project side can be deeply linked to stakeholders, and transaction fees can be used as a new type of "royalty" incentive LP/project side.

• New NFTfi building blocks: takes advantage of combinability and can be used as the underlying infrastructure of the NFTfi, gamefi project marketplace.

How Liquidity Providers Could really Help NFTs

• Support the case for Market-Making in NFT.

• Market makers have the ability;

• Facilitate the widespread adoption of NFTs in DeFi, assist more people in adopting NFT, and enable more accurate price determination.

Liquidity providers play an important role in the burgeoning NFT industry. NFTs are expected to gain widespread adoption once the issue of liquidity and price determination is resolved. Then, new opportunities such as NFT loans, derivatives, and fractionalization will emerge.