Crypto Gloss

Sudoswap (SUDO)

Sudoswap is an NFT AMM protocol on Ethereum that brings automated market making to NFT liquidity — instead of listing individual NFTs at fixed prices, liquidity providers create pools for NFT collections that automatically adjust buy/sell prices along a bonding curve. This enables instant NFT buying and selling without waiting for a counterparty, analogous to how Uniswap v2 works for fungible tokens but applied to NFTs.

How It Works

NFT Liquidity Pools:

  • Anyone can create a pool for any ERC-721 or ERC-1155 NFT collection
  • Pools use a bonding curve (linear or exponential) that adjusts prices as NFTs are bought/sold
  • Buy pools: Hold ETH, want to buy NFTs. Price decreases as NFTs are purchased from the pool.
  • Sell pools: Hold NFTs, want to sell. Price decreases as NFTs are sold to the pool.
  • Buy+sell pools: Two-sided market making; earn spread from both buys and sells.

No Royalties:

  • Sudoswap originally launched with zero enforced creator royalties — a controversial choice that sparked the “royalty wars” debate in NFTs.
  • This attracted high-volume traders who preferred to avoid 5-10% royalty fees.

SUDO Token:

  • Governance over protocol parameters and upgrades
  • Distributed via xSUDO staking program

Impact on NFT Market

Sudoswap’s launch in 2022 triggered the “creator royalty debate”:

  1. Marketplaces enforcing royalties (OpenSea) vs. optional-royalty platforms (Blur, X2Y2, sudoswap)
  2. NFT creators argued royalties were essential revenue; traders argued they were optional
  3. Blur’s rise in 2023 (which made royalties optional) largely settled the debate in traders’ favor

Social Media Sentiment

Sudoswap is discussed in NFT and DeFi circles on X/Twitter. The AMM approach for NFTs was genuinely innovative — solving the illiquidity problem plaguing NFT floor assets. While Blur (focused on order-book-style pro trading) eclipsed sudoswap in volume, sudoswap carved a niche for AMM-style NFT liquidity provision. SUDO token is relatively low-profile. The project is viewed as an important technical innovation that influenced subsequent NFT market design.

Last updated: 2026-04

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