Moverse Whitepaper
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MOVESWAP

MOVEswap – Exclusive NFTs liquidity pool

Trade, Buy, and Sell NFTs instantly.

What is MOVEswap?

MOVEswap is an AMM protocol for NFTs (non-fungible tokens) which is the digital pile of NFTs locked in a smart contract. Liquidity pool is created by users and belongs to the DAO community (NFT holders). They will be the ones to vote on and determine the pool's operation.
MOVEswap uses an on-chain protocol instead of an off-chain order book system like other marketplaces. This will ensure that all NFT will have liquidity while users can trade, buy, and sell NFTs instantly and effectively.
Here are what you can expect from MOVEswap:
  • Instantly and seamlessly trade, buy, and sell any NFTs.Enhanced liquidity for investors and speculators in NFTs.
  • MOVEswap allows members to take their money and leave whenever they want, without needing approval of other members.

How does it work?

When you make a trade on an AMM, you do not work with a traditional counterparty. Instead, you’re executing the trade against the liquidity in the liquidity pool.
So, you can only trade NFTs immediately if there is sufficient liquidity in the pool.This means users can buy from or sell into liquidity pools instead of directly trading between themselves, providing immediate liquidity for NFT traders. If you're familiar with Uniswap, it's a similar concept but for NFTs. For the buyer to buy, there doesn’t need to be a seller at that particular moment, only sufficient liquidity in the pool.
An example of this would be by taking 10 NFTs and 1,000 USDC and then putting them both into a liquidity pool. Traders could then trade USDC for that NFT or trade an NFT for an amount of USDC.
The amount of USDC required to purchase an NFT in this pool or the amount you would receive for selling your USDC is predetermined by the liquidity pool’s creator. However, as long as there are available NFTs and USDC in the pool, you will be able to trade.
For each minting box, 70% of the fee will be added to the liquidity pool.

The different from Liquidity Pool on Pancakeswap and MOVEswap

At Pancakeswap, when users add token to a Liquidity Pool (Providing liquidity), users will receive Liquidity Provider (LP) tokens which cannot be traded or profited from:
  • Staking to farming pool (if any)
  • Reward in the form of trading fees when people use your liquidity poolAt MOVEswap, users can provide liquidity by minting NFT.
And users can earn profit from that NFT by:
  • Participate in Move and earn token
  • Buy or sell directly with MOVEswap or a marketplace (no unstake required)
=> This method will ensure the value of the “LP" provided, 'LP' has its own value that is not affected by market price fluctuations.
The definition of a Liquidity Pool, is as per the explanation below from Binance (the leading global Centralized Cryptocurrency Exchange):
A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions. Liquidity pools are the backbone of many decentralized exchanges (DEX), such as Uniswap. Users called liquidity providers (LP) add an equal value of two tokens in a pool to create a market. In exchange for providing their funds, they earn trading fees from the trades that happen in their pool, proportional to their share of the total liquidity.
As anyone can be a liquidity provider, AMMs have made market making more accessible. One of the first protocols to use liquidity pools was Bancor, but the concept gained more attention with the popularization of Uniswap. Some other popular exchanges that use liquidity pools on Ethereum are SushiSwap, Curve, and Balancer. Liquidity pools in these venues contain ERC-20 tokens. Similar equivalents on Binance Smart Chain (BSC) are PancakeSwap, BakerySwap, and BurgerSwap, where the pools contain BEP-20

Who will benefit from MOVEswap

Traders:

MOVEswap takes your NFT trading to the next level.
  • Swap NFTs <> Token and vice versa instantly
  • Cash out your NFTs without waiting for buyers

Investors:

NFTs are typically illiquid and difficult to value. MOVEswap simplifies the process of speculating and investing in the NFT market:
  • Access the most liquid NFT marketplaces.
  • Keep track of the prices of specific NFT categories.