Collection.xyz’s NFT Decentralized Exchange Protocol Goes Live on Ethereum Mainnet
In Brief
Collection’s NFT DEX protocol enables users to create liquidity pools with NFTs and ETH to automate buying and selling of NFTs without intermediaries.
Users can also filter the NFTs they want to accept in their liquidity pools by specifying parameters.
Two months after launching on the Goerli testnet, Collection.xyz’s NFT decentralized exchange (DEX) protocol has now launched on the Ethereum mainnet. With automated market maker features, users can create liquidity pools with NFTs and ETH to automate buying and selling NFTs without intermediaries on a simple app interface.
The launch of Collection.xyz aims to solve the inefficiencies of price discovery and trading on current order book-based platforms by offering automated, highly customized trading options. When creating liquidity pools, users can filter the NFTs they want to accept by specifying parameters like unique traits, super-rare NFTs, or NFTs above the floor.
Furthermore, all Collection.xyz users can browse its “Hotlists” to generate ideas about curated filters to customize their pools. Users can also execute automated trading strategies by targeting individual token IDs within a collection.
Collection.xyz has previously launched community-based projects, such as The Mutant Hideout for Mutant Ape Yacht Club holders, involving the community in market-making activities and sharing profits among users. NFT project creators can use the protocol’s Draw vault to incentivize liquidity and royalty paying for their collections. By depositing NFTs or ERC-20 tokens, eligible liquidity providers can receive rewards based on their contribution. As liquidity grows, the creators earn royalties.
According to a press release shared with Metaverse Post, the DEX protocol has been successfully audited by ABDK Consulting, which counts Uniswap, GMX, ZKSpace, CitaDAO, and Sudoswap as some of its clients.
During the testnet phase, Collection.xyz held a testnet competition that saw over 120 participating wallets, with 302 pools created to trade Collection Zodiac NFTs. More than 1,100 Collection Zodiac NFTs were bought through pools.
At launch, the protocol will include features such as:
- 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), and 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.
In the future, Collection.xyz plans to enhance the trading experience by minimizing gas consumption and expanding chain coverage. Collection.xyz is a confirmed launch partner for Base by Coinbase, an Ethereum Layer 2 network.
“We want to ensure that we have a version of our UX that fulfills the new user’s needs for NFTs while also having an interface that caters to the professional audience with more data, real-time capabilities, and features. The gas fee reduction will benefit all users, and we’ll keep that in mind as we build out the next version. We plan to launch on Base L2 on Ethereum as one of the launch partners. Thereafter, we’ll prioritize other EVM-compatible networks with significant demand and traction,” Spencer Yang, co-founder of Collection.xyz, told Metaverse Post.
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About The Author
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
More articles
Cindy is a journalist at Metaverse Post, covering topics related to web3, NFT, metaverse and AI, with a focus on interviews with Web3 industry players. She has spoken to over 30 C-level execs and counting, bringing their valuable insights to readers. Originally from Singapore, Cindy is now based in Tbilisi, Georgia. She holds a Bachelor's degree in Communications & Media Studies from the University of South Australia and has a decade of experience in journalism and writing. Get in touch with her via cindy@mpost.io with press pitches, announcements and interview opportunities.
