What is MidaSwap? MidaSwap is an NFT AMM platform on Ethereum that allows users to trade NFTs while helping LPs earn additional income from trading fees. So what’s special about this project? Let’s find out with Weakhand in this article.
Before jumping into the article, everyone can refer to some of the following projects to gain more knowledge about the NFT AMM segment.
- What is SudoSwap? SudoSwap cryptocurrency overview
- What is HadeSwap? HadeSwap cryptocurrency overview
- What is Caviar? Caviar cryptocurrency overview
What is MidaSwap?
Overview of MidaSwap
MidaSwap is an AMM platform on Ethereum for model-based NFTs Liquidity Book. MidaSwap was born with the purpose of providing a good trading experience for users in the NFT market while also providing many different strategies for Liquidity Providers to profit from trading fees.
What is MidaSwap?
Participants on the MidaSwap platform:
- User: Any NFT can be traded on the MidaSwap platform. Users need to pay a 0.5% fee for each transaction and depending on the NFT, there is an additional 0.5% royalty fee.
- Liquidity Provider (LP): Provide liquidity for NFT – ERC20 trading pairs to receive trading fees. A special point about MidaSwap is that users only need to provide liquidity on one side of NFT or ERC20, which helps increase liquidity while reducing Impermanent Loss for LPs. MidaSwap also mints 1 NFT ERC721 representing LPs in the Pool
MidaSwap’s mechanism of action
MidaSwap applies the Liquidity Book model by dividing liquidity into price zones, each price zone is called 1 Bin. MidaSwap applies the formula X + Y = K to each Bin to determine the NFT price per transaction. The Liquidity Book model was first introduced by Trader Joe in August 2022, everyone can refer to details about the Liquidity Book model here.
I will give the following example so everyone can better understand the price model applied by MidaSwap on its platform:
Example of price model applied on the MidaSwap platform
Let’s say Alice, Bob and Charlie added NFT liquidity to the liquidity book in the range Bin15, Bin25 and Bin30 and David added an NFT sell limit order in Bin20. In this case, the floor price is 15 USDC and Midaswap will list the price of the NFTs in the Liquidity Book. Note that the initial order price of Tokenid1 and Tokenid2 provided by Alice is 30 USDC. The purchase of any NFT provided by Alice will increase the price of another NFT provided by Alice (in this case, 5 USDC).
What is the MidaSwap difference?
MidaSwap is working with several lending platforms to allow users to use LP Tokens as collateral. In addition, the liquidity provision between LPs is completely independent, so the more times the providing LP trades, the more fees are incurred and the more rewards the LP will earn.
Core Team
Tim xie : Co Founder
- Tim Xie has worked at a blockchain platform called AschPlatform since July 2017 as a Software Engineer.
- Then in March 2020, Tim Xie joined Qilin Protocol as Co Founder.
- In October 2022, Tim Xie quit his job and became Co Founder at MidaSwap
Investor
Update…
Tokenomics
Update…
MidaSwap Project Information Channel
- Website: https://www.midaswap.org/
- Twitter: https://twitter.com/Midaswap_
- Discord:
summary
MidaSwap helps improve user experience during the trading process through the Liquidity Book model – a model that Trader Joe has also applied very successfully to Tokens. Hopefully the information I provide in this article has helped everyone gain interesting knowledge about MidaSwap.
