Magic Eden Launches Automated Market Maker Platform for NFT Traders
Magic Eden, a popular marketplace for non-fungible tokens (NFTs), has recently announced the launch of their automated market maker (AMM) platform. The new AMM allows users to act as buy-side liquidity providers (LPs), sell-side LPs, and bilateral LPs. This is a significant development for NFT traders as it simplifies the management of multi-item sell or buy orders, regardless of the LP size.
To access Magic Eden’s AMM Pools, users need to click on their shopping cart and select the ‘Advanced Orders’ toggle. The Market-Making option will then appear, and users can select ‘Buy Only’, ‘Sell Only’ or ‘Double Sided’.
The AMM platform has three types of LPs, which are buy-side, sell-side, and double-sided LPs. A buy-side LP is similar to multiple collection offers with different prices. Instead of inputting the prices one by one, users only need to describe their entire buy-side LP in terms of the pricing curve type (linear or exponential), the highest buy price on the curve, the number of single buy orders on the curve, the incremental delta amount on the curve, and whether a royalty payment is enabled.
On the other hand, a sell-side LP is similar to multiple listings with different prices. Instead of inputting the prices one by one, users only need to describe their entire sell-side LP in terms of the pricing curve type (linear or exponential), the lowest sell price on the curve, the set of NFTs that need to go into the sell-side LP, the incremental delta amount on the curve, and whether a royalty payment is required on each sale.
Magic Eden’s AMM platform is an exciting development for NFT traders as it allows them to manage multi-item sell or buy orders easily. This means that traders can focus on their NFT investments instead of spending time managing orders. Additionally, the launch of the AMM platform is timely as the NFT market continues to grow rapidly. In conjunction with the launch of the AMM platform, Magic Eden is offering a $50,000 prize pool with a Maker fee of 0, and all liquidity pools have a 1.3x fee multiplier.
In conclusion, Magic Eden’s AMM platform is a significant development in the NFT market that simplifies the management of multi-item sell or buy orders. It will be interesting to see how the platform develops and how it impacts the NFT market in the future.
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