Gumball Protocol: NFT Liquidity Solutions Based on Arbitrum
The NFT season has returned. It’s great when the NFT price rises, and there are always people willing to buy it. But it’s not so much fun when it drops, and it’s hard to find someone willing to take it for your Jpeg. People stop buying NFTs because they are inliquid assets. Sudoswap was the first protocol to solve the problem. It created an NFT liquidity pool that pairs NFTs to ETH via a bonding curve. The Gumball Protocol facilitates the creation and trading of NFTs. Gumball aims to solve the problem of NFT liquidity by creating an ERC-20 token unique to each collection. This will enable instant liquidity and make it easier to convert these valuations into liquid assets. Gumball is working to solve this problem by determining the bonding curve for how NFTs can be interchangeable with ERC-20 tokens. Arbitrum is leading the effort to offer the best Web3 experience. To take advantage of various scaling options for Ethereum, projects are joining forces. Its products are among the best on the market due to a variety of benefits including faster transactions and interoperability via EVMs. Arbitrum users also enjoy economic benefits. The protocol architecture is broken down into three main parts. Gumball Factory is the first, which creates gNFTs (Gumball NFTs) and deploys new NFT collections. A pool is created when it interacts with an ERC-20 Bonding Curve. This curve is similar to Sudoswap but uses native GBT tokens rather than ETH. The Gumball Factory makes it possible to convert GBT and NFT between any time. Instead of the NFT floor price being determined based on ETH trading activity, the Gumball Token is used with ETH to determine the price. GBT’s price is controlled by a bonding curve. Each purchase increases the price of GBT, and each sale decreases it. This stabilizes the price until buyers and sellers reach an equilibrium in the token’s value. Transaction fees are generated by users who interact with the bonding curve. GumbarGumbar allows users the opportunity to earn transaction fees by trading GBT and NFT by staking GBT. This allows the protocol to maintain liquidity, which is a critical component of DeFi. However, Gumball Protocol still has some opportunities to add value. The following numbers are based on the top three NFT collection on the platform. If Gumball launches more collections, it is possible to expect fees to increase. The protocol helps creators market their products to their communities. It partially removes one of their biggest fears.
The creator receives 1% of the swap fees.
GBT/GNFT stakers, who facilitate the swap and maintain liquidity within protocol, receive a 1% swap fee.
Since January 10, the protocol has generated approximately $17,688.37 at ETH prices. Since January 10, the protocol has generated approximately $17,688.37 per day at ETH prices. This premise has the risk that NFT holders will flock where there is the most liquidity. This leaves no revenue for stakers related to NFT collection, including protocols.SafetyGumball was audited by A-rated audit firm Peckshield in December 2022. They determined that while they found a few issues, including 1 medium-severity bug and 2 low-severity bugs, overall, the smart contracts were well-designed by the team.They were also audited by Zokyo prior to the Peckshield audit in June 2022 and passed the initial audit with flying colors (although the contract was later amended, hence the second audit).ConclusionGumball is a new iteration of the NFT/ERC-20 pair that Sudoswap will revolutionize in the summer of 2022. It’s a unique concept that creates instant liquidity for NFTs. Although they have not yet shared any indications of a token launch or a token launch, it is worth engaging with the platform early on. We encourage you to do your own research before investing.Join us to keep track of news: https://linktr.ee/coincuWebsite: coincu.comHaroldCoincu NewsTags: ArbitrumETHGBTgNFTGumballGumball FactoryNFTSudoSwap