NFT protocol Collection launched an NFT DEX protocol that allows users to create liquidity pools for NFTs that target specific criteria.
Users can set price parameters and restrict pools to certain collections, in-collection traits or socially curated lists to allow people to buy and sell NFTs more quickly and easily.
“The protocol uses Merkle proofs to specify and target specific NFTs by token IDs, allowing users to target individual tokens, user-defined groups, or the whole collection, according to NFT infrastructure startup Gomu, the open-source project’s core contributor. These NFTs can be grouped based on what users desire such as traits, rarity, or even whether they are banned on Opensea.
Sound confusing? Imagine you want to buy a Bored Ape Yacht Club NFT that has a solid gold fur trait, a trait shared by just 0.46% of the BAYC collection. Instead of searching and bidding on other marketplaces, you could create a liquidity pool and deposit ETH into it. Someone wishing to sell a solid gold fur Ape would then be able to deposit the Ape into the pool and be paid for it immediately.
Likewise, if you wanted to sell an NFT, you could find a pool that matches the criteria of your NFT and sell it straight away, providing there is enough ETH in the pool.
Testnet and rollout
Collection will launch on Ethereum’s Goerli testnet today before rolling out on the Ethereum mainnet later on in Q1 2023.
“The difference between the NFT DEXs versus the traditional marketplaces like OpenSea is that you can automatically buy and sell,” said Spencer Yang, core contributor for Collection.xyz & CEO of Gomu. “We believe that NFT DEX infrastructure is essential for the growth of the NFT industry in all market conditions.”
Based in Singapore, Gomu launched early last year and raised a $5 million seed funding round in October from investors including Coinbase Ventures, Defiance Capital, and Saison Capital. In November, it announced Mutant Hideout, an NFT marketplace and community hub for members holding Mutant Ape Yacht Club NFTs.