The co-founder of Jupiter Aggregator introduces GOAT Swap, an Automated Market Maker (AMM) for Non-Fungible Tokens (NFTs) that enables users to collect fees on liquidity such as Magic Eden.
“I believe that the NFT AMM model will significantly alter NFT trading on Solana.” Ben Chow, creator of GOAT Swap, said Web3Wire that automated buying and selling versus a price curve is available for the initial time. This would greatly simplify trading for NFT holders, enhance NFT liquidity for all possessors, and enable NFT arbitrage trading.
You may establish the pricing and trading fees for your NFTs using GOAT Swap. Furthermore, you may construct pools for the automated purchase, sale, and exchange of NFTs.
The pool, also known as the liquidity pool, is a smart contract that enables the immediate exchange of assets. The most prevalent pool on GOAT swap is an NFT>SOL pool, in which anybody with an NFT from that series may trade it for SOL.
For instance, if you visit the GOAT exchange website and browse the “Collections” section, you will likely find the following:
Let’s use the ‘Dippies’ NFT series, where the Buy, Sell, and Pools buttons are shown. You may purchase any NFT in the Buy category and sell any NFT in the Sell section. When you go to the Pool tab, however, you will notice that there are both one-sided (NFT > SOL and SOL>NFT) and two-sided (NFT > SOL) pools:
There have been issues over whether GOAT Swap and ElixirNFT are the same, since both appear to perform the same function.
Ben Chow said that there are distinctions between the two: “ElixirNFT has a different system than we do. While they are society-owned, authorization is required to access them. In addition, you must adhere to any cost structure they establish. If you aren’t Apple, you can’t create an iPhone, but anybody with the knowledge can develop an Android phone, which is why there are a plethora of them. Likewise, if you wish to swap any NFT on GOATswap, you may form a pool and establish your own costs.”
Despite the advantages and disadvantages of each strategy, the creator feels that “empowering every NFT holder to turn into a liquidity provider and collect fees similar to any other marketplace” presents the most chance.