Sweep n' Flip: Brazilians launch liquidity pools for the NFT market
A group of Brazilians created a decentralized exchange ( DEX ) focused on non-fungible tokens ( NFTs ), called Sweep n' Flip . Using a modified version of Uniswap v2, the idea is to allow the creation of liquidity pools that combine NFTs and tokens ERC-20. Daniela Zscharber, Head of Marketing at Sweep n' Flip, shared more details about DEX with Cointelegraph Brasil.
More liquidity for NFTs
In times of downturn in the cryptocurrency market, it is common to see NFT holders with large amounts 'stuck' in their wallets. This happens due to the low liquidity that the NFT market presents, characteristic of the lack of fungibility.
Also, it is not possible to sell just a fraction of an NFT, unlike ERC-20 tokens such as MATIC, SNX or UNI. In practice, a holder of an item from the Bored Ape Yacht Club collection can be left with more than BRL 300,000 trapped in the form of an NFT.
DEX Sweep n' Flip aims to solve these pains, by enabling the creation of liquidity pools with NFTs that, like conventional pools, generate gains for users.
“It is an incentive for the NFT holder of a collection, who can now place the token on the DEX and receive part of the transaction fees [made in the pool]”, evaluates Daniela Zscharber. “It is also not necessary to wait for orders in an order book to sell or buy. It is possible to do this within a liquidity pool”, he adds.
Trading simulation between the MATIC token and NFTs from the Gotas collection. Image: Sweep n' Flip
The liquidity pool model for NFTs also protects collections, says Zscharber. Holders of these tokens can choose to provide liquidity and receive income instead of dumping their collectibles on the secondary market.
Currently, Sweep n' Flip offers more than twenty liquidity pools for collections of NFTs in the Polygon ecosystem. Recently, support was added for a blockchain Ethereum, and the first collection chosen was CryptoRastas, designed by Brazilian Marcus MPC.
Some of the collections available on the Sweep n' Flip platform. Image: Sweep n' Flip
“By the end of 2023, the plan is to have more than 100 liquidity pools on our platform”, concludes Zscharber.
