After the whales harvest BLUR, they switch to SUDO, and whether Sudoswap, whose trading volume has been suppressed, will see spring again

2023-02-17 18:33

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原文标题：《巨鲸收获 BLUR 之后转向 SUDO，交易量被抑制的 Sudoswap 能否再次迎来春天》

Animoca Brands Digital Assets Research Team

PANews

The airdrops have had a huge wealth effect as NFT marketplace Blur has launched airdrops and launched its original BLUR token on major trading platforms, with many early participants reaping huge rewards. It's no exaggeration to say that February saw a number of significant liquidity hot events, and now the community seems to be turning its attention to the NFT automated market maker Sudoswap, with market researchers wondering whether its governance token SUDO could be the "next big thing."

At the end of January, Sudoswap released governance token SUDO and rolled out lock and drop. Early sudoAMM LP (trading pool only) and 0xmons NFT holders (prior to snapshot date) were eligible for SUDO drops. XMON holders, on the other hand, can earn SUDO tokens through a lock-in activity and then get 10,000 Sudos for every XMON they lock up for a month from the time the contract is deployed.

XMON is a platform for summoning neural networks to generate pixel monsters called NFT. Built by Sudoswap developer 0xmons, since SUDO is still not tradable and XMON and SUDO have a "close relationship", So the crypto community often uses the XMON price to value SUDO.

Interestingly, the Sudoswap team gave the on-chain governance forum all decision making on the SUDO publishing mechanism, including whether SUDO tokens could be listed on the trading platform and liquidity guidance, resulting in a collapse in XMON's price.

The price performance somewhat reflected the community's dissatisfaction, especially after Sudoswap announced its initial token economy model, and the drop from $23,000 all the way down to $18,000 showed that XMON traders didn't like the idea of locking up assets. That, coupled with SUDO's uncertainty about its "non-transferability" -- whether and how soon it will be able to trade on a trading platform -- has also put many off, even though XMON has bounced back above $20,000 at the time of writing.

In fact, the Sudoswap community has been pushing for SUDO to be tradable. February 2, community member @Taikimaeda2

A proposal to fix the problem fell short of the 2.4 million required to vote; On February 14, community member farmertaiki.eth again launched a proposal to promote the tradability of SUDO, aiming to address the initial liquidity incentive plan and detailed liquidity mining issues, while avoiding the volatility and selling pressure caused by the withdrawal of the whale liquidity. (Note: According to the SUDO distribution plan announced by Sudoswap in September 2022, an initial supply of 60 million tokens will be distributed to XMON holders, but as much as 41.9% of the token supply will be distributed to Xmon holders, which also caused great controversy in the community at the time.) 3,647 addresses divided nearly half of Sudoswap airdrop, will face the big test of user loss

In simple analysis, initial SUDO liquidity is unlikely to be deployed before early March (meaning SUDO is unlikely to be available on the trading platform), which is why many traders are looking at BLUR at this stage. However, the next wave of crypto market attention is likely to shift to SUDO, and the data on the chain shows that some people are already exploring SUDO's potential, such as the whale in the image below who has converted all 162,379 BLUR into XMON.

On the other hand, to solve the SUDO liquidity problem, SugoiSwap wrote a liquidity wrapper contract to bypass Sudoswap's restrictions, but judging from the market reaction, there seems to be little interest in using this contract to trade SUDO. Lack of liquidity and demand also caused wSUDO price discovery not to work.

Next, let's look at the fundamentals.

If SUDO is valued using the XMON price, the current market price of SUDO should be around $1.90 with a market cap of around $114 million. Compared to LOOKS at around $300 million fully diluted valuation (FDV) and X2Y2 at around $180 million fully diluted valuation, SUDO seems to have a lot of room to grow -- not to mention compare it to BLUR...

Sudoswap has been held back by OpenSea's blacklisting of NFT markets where royalties are not mandatory, but with the rise of platforms such as Blur, this may soon change. Frankly, the Sudoswap "nftAMM" design concept is a "zero to one" innovation that played a significant role in the NFT financialization process, and perhaps the community is aware of some of the early issues (such as inefficient asset pricing) and some "interesting things" are in the works.

In short, SUDO deserves more attention after Blur's airdrop.