SudoSwap's Recurring User Base A Good Sign of Organic Usage

Despite overall volume and user base declining after the airdrop, recurring users actually make up on average 70% of all daily users on SudoSwap since November 2022, with this figure reaching all-time high of 79% on Dec. 12.  SudoSwap offers immediate sell-side liquidity for NFTs through Sudo AMM v2’s customizable bonding curves. LPs deposit NFTs and/or ETH into liquidity pools, and can choose if they want to buy or sell NFTs (or both) and specify bonding curve parameters. The AMM has found organic product-market fit for creators and the NFT community, allowing creators to generate a more guaranteed alternative revenue stream, given the race to zero with royalties amidst the stiff NFT marketplace competition. It also allow NFT traders to enjoy noticeably better prices and lower slippage, a perfect balance between value alignment.

While some form of product-market fit has been established, the project still needs to figure out how to tie the AMM product and SUDO token cohesively. A project with a good product does not necessarily have a good token design (e.g UniSwap), and it will be crucial for the team to figure out how to create a sustainable value accrual mechanism for SUDO soon as competition among NFT marketplaces remain stiff. We have yet to see any token incentives from SudoSwap, which likely can draw more users to try out Sudo’s AMM, which after all, has a steeper learning curve compared to traditional marketplaces such as OpenSea. The NFT crowd are (generally speaking) not as well versed in DeFi, so it will be interesting to see how the team educate retail NFT users to learn and use Sudo’s AMM and drive further adoption.


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