1inch will enter the NFT trading market, and a new round of offensive and defensive battles for DEX will start?

The NFT trading market will welcome new players again. The DEX aggregator 1inch recently initiated a vote on the proposal to create an NFT trading aggregator, which was passed without surprise or with a high number of votes. As of the publication, the support rate of the proposal initiated by 1inch has reached 97.8%, and the voting will end on March 26.

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Features such as free and limit orders, which have been supported by high votes

In order to maintain competitiveness in the DeFi field, the 1inch community initiated a proposal to create an NFT market aggregation platform with no platform fees. Iinch believes that a successful community market can bring traffic to its ecosystem and DEX aggregator products. It hopes to reduce the cost of community members by building a 1inch native market with rich user experience, and use its own advantages in the DeFi field to develop in DeFi , NFT and Web3 ecology to gain a broader market share.

The proposal pointed out that the current trading volume of NFT has dropped significantly compared with the NFT bull market in 2021 and 2022, and at the same time, NFT platforms related to mining rewards such as Blur have seized sales and market share. And the best example of the effectiveness of NFT transaction aggregators is during the bull market in 2021 and 2022, when the market share is mainly distributed on Gem and Genie (now acquired by OpenSea and Uniswap respectively).

However, this method of simply aggregating transactions does not completely solve the NFT liquidity problem, especially the long-tail asset holders lack transaction motivation, and the incentive methods of transaction mining such as Blur and X2Y2 further endow asset transactions with liquidity .

Although 1inch believes that the current NFT market is extremely challenging, its DEX aggregator is also facing the same problem before its release. 1inch hopes to create more liquidity for NFT by introducing large-scale market makers on the NFT aggregation platform as NFT market makers, and by integrating limit order functions, additional product overlaps, and connections with existing networks. Market makers are more decentralized.

1inch's NFT market aggregator aims to provide a comprehensive aggregation platform for buying, selling and trading NFT. It tries to simplify the process of purchasing and managing NFT by aggregating various market lists. All transaction and listing service fees of the NFT market in the MVP stage will be included in the DAO treasury. At the same time, the aggregator also provides advanced search and filter options to help users find specific NFTs based on details such as feature type, floor price, rarity, and creator. In addition, 1inch also plans to provide a unified wallet that allows users to store and manage their NFTs in multiple markets.

And considering 1inch's existing platform, the NFT aggregator will also allow users to exchange their NFTs with other cryptocurrencies, such as Ethereum and any other ERC-20 tokens, aiming to provide more liquidity for the NFT market, And provide investors with a decentralized and safe asset trading path.

Of course, if you want to be competitive, you must have the same or even lower fees than competitors such as X2Y2. The NFT market aggregator will not charge platform fees and will support 1inch, OpenSea, X2Y2, and Looksrare. At the same time, 1inch will also use the agreement's limit order protocol (1inch's gas-free limit order function allows users to set specific price targets and trading conditions for swap, and the transaction can be completed when the market price matches the set data. ) brings true limit orders to the NFT space, again at no additional cost.

For example, when Bored Ape Yacht Club NFT holders want to sell their NFT assets, the NFT limit order function can Allow the holder to set the automatic listing at any desired price. For another example, when the NFT held by the user is crashing and they cannot use the Internet, they can create a stop-loss limit order to have their NFT assets automatically listed when the floor price calculated by TWAP is hit.

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Enter NFT one after another, multiple DEXs compete on the same stage

With the increasing size of the NFT market and accelerating penetration into a wider range of user groups, more and more institutions have accelerated their pace of entering the NFT field, including many DEX platforms. With the advantages of the DeFi field, how do these DEXs perform in the NFT field?

Uniswap

As one of the leading DEX projects, Uniswap announced the acquisition of Genie, an NFT aggregation market, in June 2022, and it was officially launched a few months later, supporting platforms such as OpenSea, X2Y2, LooksRare, and Sudoswap. However, the performance of DEX "top class" Uniswap in the NFT field is not satisfactory. NFTScan data shows that as of March 23, the Uniswap NFT market has only generated a transaction volume of over 4,900 ETH since its launch, the number of interactive wallets is only 28,000, and the number of NFT transactions is about 30,000. Especially since the beginning of this year, most of the daily transaction volume is less than 100 ETH, and it has only been in single digits recently.

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0x

0x is an open protocol that supports peer-to-peer asset exchange on Ethereum, and it enables DeFi applications on the Ethereum network. According to NFTScan data, as of March 23, the total transaction volume of 0x has exceeded 4,200 ETH, the number of NFTs sold is about 52,000, and the number of interactive wallets exceeds 65,000. Overall, the daily trading volume of 0x is basically in single digits.

In addition, SushiSwap previously announced the launch of a decentralized brand licensing and incubator framework, and Sushi Studios also plans to launch an NFT market in the first quarter.

On the whole, at this stage, these DEXs are still unable to become a liquidity release tool for NFT, and whether 1inch will change after entering the market, we will not know until it is officially launched.