Introduction

Let’s start off with some word games first.

Sudo-swap. sudo is an abbreviation of "super user do" and is a Linux command that allows programs to be executed as a super user (aka root user) or another user. Nice !!. The name in itself packs a punch!. Did the team just wanted to put the user in more control by building a decentralized NFT marketplace, unlike others (psst. :shushing_face: Opensea)

Okay, back to intro.

The sudoswap AMM – or just sudoswap for short – is a minimal, gas-efficient automated market maker (AMM) protocol that facilitates NFT-to-token swaps (and vice versa) using customizable bonding curves. As of August 2022, sudoswap supports ERC721 NFTs, as well as all ETH and ERC20 tokens.

What is Sudoswap?

Sudoswap is a decentralized NFT marketplace on the Ethereum network, and it operates in a radically different way compared to other NFT marketplaces.

O==n OpenSea== you trade NFTs with other people through an ==off-chain order book model.== But ==on Sudoswap you buy and sell NFTs through liquidity pools,== which are pieces of code on the blockchain that contain tokens. Users can deposit NFTs or ETH into Sudoswap’s pools and earn fees from trades that take place through these pools.

The main advantage of Sudoswap is that there’s always liquidity if there’s a pool for your NFT collection, so you can immediately sell your NFT into a pool and receive ETH. That said, one disadvantage is that you may not always get the price you’d like, so it may not be an ideal option for super-rare, high-priced NFTs.

The reason behind this is because the price of NFTs changes in proportion to how many NFTs are left in the pool – basically, it’s simple supply and demand calculations. For users experienced with decentralized exchanges, these mechanics should feel familiar, but it is a very different experience for those who are used to NFT marketplaces like OpenSea where you can set the sale price.

Each NFT collection on Sudoswap may have multiple pools with different specifications – all created by users. One specification is “bonding curve,” which is essentially a mathematical formula that determines how the price of NFTs in that pool will change after each sell or buy.

Reference

Note: As this is a dashboard bounty, the amount of explanations used are restricted to bare minimum.

Important parameters

Comparing with other marketplaces

==Sudoswap had a very good initial months.== In the months of ==July== and august it recorded huge growth. Boasting of ==15000% growth in volume==, however the growth rate has reduced in the following months, it’s significance in the market has not.

On the other-hand, it’s competitor ==opensea has stagnated== to an extent. The number of users has remained stand still. However, ==larva labs looks like it has lost a lot of customers== in the following months.

On analyzing the sheer number of NFT’s sold, ==opensea still dominates the market with 90%== of the NFTs sold on it in the last 6 months.

However, it accounts to only 50 % of the volume.

Sales comparison

==Sudoswap supported (15) the second highest number of currencies to facilitate NFT trading.== This is possible because of the system design, any user can create a pool with a token and NFT of his choice. Opensea on the other hand accepted close to 60 currencies, TRUE GOAT.

However, larva labs, looksrare and nftx have only facilitated trade using 1 currency.

==Even though sudoswap allowed for 15 different currencies, the truth is almost all the trades happened using ETH or WETH. I==t too followed the general trend seen in the entire ethereum space.

Note: we filter out tokens such as SINS which are specifically used to trade SINS finance NFTs by using price_usd as a filter. s

Fees

Currencies supported

ZERO. Yes, zero creator fee is now raging in the NFT market. ==Sudoswap, larva labs and nftx are among the marketplaces that have collected 0 creator fees== in the past 6 months.

==Sudoswap== being a Decentralized exchange for NFTs runs solely on smart contracts. This leads it to having some of the ==(second) highest transaction fees.== However, it makes up for this by charging a very ==negligible 0.5% as platform fee.==

New users

Where have new your turned to in the past months ?

It is clearly visible that ==in the month of August 2022, a wave of users made their first nft purchase on sudoswap.==

Sudoswap

==The correlation coefficient between volume of sales and average price is - 0.45 indicating an inverse relation between the two==

Volume

NFTs sold

Buyer and sellers

==It appears that the BAYC, nouns and based ghouls are among the costliest NFT projects on sudoswap.== This is inline with the trends seen across other marketplaces.

Daily active users

We define daily active users as those users who perform who perform more than 2 transactions in a week. We see that most users performed only 1 transaction a week. However, a small fraction of them have been active and the number has saturated to close to 500 users.

User analysis

Around ==76% of the users have used the sudoswap marketplace only for a week or less.== However, users who use the protocol for more than 4 weeks can be considered as loyal customers. and their numbers seem to be good, ==around 5% can be considered as long time users.== or around a 1000 users

We observe that ==most of the buyers (65%) spend around 10-1000 USD on average.==

However, the number of users spending less than 1 USD on average is very low. This may be because the transaction fees on ethereum might itself cost more than NFT thus discouraging small users.

NFT projects

The trend appears to be to that ==as the average price of an NFT goes up, the number of NFT’s of the project sold reduces.== This can be seen in the size of 8liens which has an average price of 978 USD and close to 2000 NFts sold.

Same trend, but exponential manner. Here the ==costliest projects appear to be sold in very low numbers==. Especially the blue chip NFTs. BAYC, Nouns and kamagang have NFT sales in single digits sold in the past 6 months. (Note: the blue chip NFTs appear like a small speck on the map)

Among the new projects, Renga’s ==blackbox and 8liens have been particularly traded in large amounts== in the recent months.

Around ==50% of the sales are of the value 10-500 USD.== with only 0.7% sales amounting to more than 5000+ USD.

Surprisingly, ==the market share of shrimps is much less ( half of) than share of whales==

Key takeaways

• Sudoswap had a very good start, boasting of 15000% growth in the initial months which has since reduced.
• In the month of August 2022, a wave of new users made their first NFT purchase on sudoswap.
• Sudoswap supported (15) the second highest number of currencies to facilitate NFT trading. However, ETH and WETH accounted for 99% of the volume generated.
• Sudoswap, larva labs and nftx are among the marketplaces that have collected 0 creator fees, but a concerning point is that, it also suffers from high transaction fees (2nd highest).
• The correlation coefficient between volume of sales and average price is - 0.45 indicating an inverse relation between the two.
• It appears that the BAYC, nouns and based ghouls are among the costliest NFT projects on sudoswap. However, their number are very small, in fact they are in single digits. Among the new projects, blackbox and 8liens have been particularly traded in large amounts
• 50% of the sales are of the value 10-500 USD.
• around 5% of the user base can be considered as loyal users as they have been active on the platform for more than 4 weeks in the past 6 months.

Twitter thread :

Definitions

1. Volume : the total amount of USD involved in the transactions. ( It is usually the sum of total USD spent, unless mentioned otherwise)

2. Platform fees : Every platform takes a fee for facilitating an NFT trade. The fee percentage can vary depending upon the marketplace. 0.5 % in the case of sudoswap.

3. Creator fees : A percentage of sale that goes to the creator. similar to the concept of royalties. Examples of creators: Yuga labs.

4. Transaction fees : the fees paid to validators and governors to include NFT transactions into blockchain

5. NFT projects : NFT projects in this dashboard refers to the series of NFT. Examples: BAYC, Nouns, AZuki.

6. New NFT projects : Projects that have been launched recently. ( For this dashboard, author considers the last 6 months)

7. month on month growth : the change in the value of a specific metric as a percentage of the previous month's value. Calculations : subtract the first month from the second month and then divide that by the last month's total.

8. New users: Users who bought their first NFT irrespective of marketplace. Does not include minting or transfer.

9. Active users : Users who perform at-least 3 (or in other words, more than 2) NFT transactions in a single week is considered to be active on that week.

10. Loyal users : Users who have used the platform for more than 4 weeks in the past 6 months.

11. Currency: token offered by Buyer in exchange of NFT.

12. Classifying trade sizes

    when PRICE_USD < 1 and PRICE_USD > 0 then 'shrimp (0-1)'
      when PRICE_USD < 10 and PRICE_USD >= 1 then 'crab (1-10)'
      when PRICE_USD < 50 and PRICE_USD >= 10 then 'Octpus (10-50)'
      when PRICE_USD < 100 and PRICE_USD >= 50 then 'Fish (50-100)'
      when PRICE_USD < 500 and PRICE_USD >= 100 then 'Dolphins (100-500)'
      when PRICE_USD < 1000 and PRICE_USD >= 500 then ' Shark (500-1000)'
      when PRICE_USD < 5000 and PRICE_USD >= 1000 then ' Whale (1000-5000)'
      when PRICE_USD >= 5000 then 'Humpback whale (5000+)'
    

Parameters :

This dashboard allows the user to change the number of months parameter. The term `number of month` means how many past months you would like the dashboard to display.

Reference :

1. Sudoswap working and introduction →
2. Daily active users query from adriaparcerisas’s dashboard →
3. Spending budget of buyers query from k2rbpz‘s dashboard →

Conclusion

• Sudoswap had a very good start, boasting of 15000% growth in the initial months which has since reduced.
• In the month of August 2022, a wave of new users made their first NFT purchase on sudoswap.
• Sudoswap supported (15) the second highest number of currencies to facilitate NFT trading. However, ETH and WETH accounted for 99% of the volume generated.
• Sudoswap, larva labs and nftx are among the marketplaces that have collected 0 creator fees, but a concerning point is that, it also suffered from high transaction fees (2nd highest).
• The correlation coefficient between volume of sales and average price is - 0.45 indicating an inverse relation between the two.
• It appears that the BAYC, nouns and based ghouls are among the costliest NFT projects on sudoswap. However, their number are very small, in fact they are in single digits. Among the new projects, blackbox and 8liens have been particularly traded in large amounts
• 50% of the sales are of the value 10-500 USD.
• around 5% of the user base can be considered as long time users as they have been active on the platform for more than 4 weeks in the past 6 months.

Reference :

1. Sudoswap working and introduction →

2. Daily active users query from adriaparcerisas’s dashboard →

3. Spending budget of buyers query from k2rbpz‘s dashboard →

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Methodology

The dashboard can be divided into 3 main sections.

1. Important parameters : For a quick glance, Important parameters such as volume, NFTs sold, top NFT and many more metrics are displayed together. All data is of the current day.
2. Marketplace comparison : While this dashboard focuses on SUDOSWAP, it is necessary to understand it’s performance against its competitors. Hence we compare it with other marketplaces based on parameters such as monthly growth, total fees and marketshare ( and many more). ==It is also to be noted that a special emphasis is made on sudoswap while comparing as this is a dashboard dedicated to sudoswap.==
3. Sudoswap Analysis : The final third part involves understanding the sudoswap marketplace. We strive to understand how the marketplace has been functioning in the past 6 months, what NFT projects are being sold and which of them are popular and finally look at user behaviors.

Tables used include

1. ethereum.core.ez_nft_sales
2. ethereum.core.dim_contracts