Magic Eden launches AMM-type NFT marketplace

Launch of Magic Eden AMM

NFT electronic market giant Magic Eden announced today that it has opened an Automated Market Maker (AMM) on the Solana (SOL) blockchain.

Hey Solana
Announcing: our Magic Eden AMM!

0 MAKER FEES til further notice
1.3X FEE MULTIPLIER on all liquidity pools ($50K prize pool)!
Something special: set up liquidity pools by NFT TRAITS

Set up buy / sell or double-sided pools today! pic.twitter.com/6vsagHQG2r

— Magic Eden (@MagicEden) April 27, 2023

Magic Eden AMM is a vending machine-like trading platform that constantly offers the selling price between two assets (SOL/NFT). Both buyer and seller users can set up a trading market called a “liquidity pool” to efficiently manage multiple NFT (non-fungible token) buy and sell orders and earn commission income.

The following three types of typical uses of Magic Eden AMM are assumed.

• Traders set up a “purchase-only pool”, put in the settlement currency (SOL), and wait for sellers.
• Whales set up a “sale-only pool” and put in NFTs to wait for buyers.
• Creators set up a “buying and selling pool” and earn commission income by providing liquidity.

The price calculation formula presented is a mechanism set by the pool creator. For example, the Magic Eden AMM buy-side LP offers two options: linear (e.g. increments of 0.1 SOL) and exponential (e.g. increments of 5%). Further parameters can be set, allowing pool creators to customize pricing to suit their trading strategies and objectives.

As part of the promotion of the new AMM model, Magic Eden is implementing a 1.3x increase in commission revenue paid to providers for every transaction in the liquidity pool, with a free period for maker fees. The total prize money is 6.73 million yen ($50,000).

Source: Magic Eden

To access Magic Eden’s AMM pool, visit any collection page, click on the shopping cart in the upper right corner, and select “Advanced Orders.” You will be presented with market-making options, which you can choose to buy only, sell only, or both sides.

connection:What is AMM (automated market maker) | Explanation of mechanism and risks

What is Magic Eden

Magic Eden, which was launched as an NFT electronic marketplace on the Solana blockchain in September 2021, provides excellent searchability and user experience (UX), and is an NFT collection issuing platform “NFT Launchpad” that is easy to use even for non-developers. ”, and has acquired many users and creators in the Solana NFT ecosystem.

In October 2022, it partnered with Coral Cube, an NFT market aggregator with functions for traders, but its purpose was not disclosed. However, the latest Magic Eden announcement cites Coral Cube’s AMM function overview, suggesting technical cooperation.

In recent years, Magic Eden has pursued a multi-chain strategy, adding support for the Polygon (MATIC) blockchain. In addition, it also provides aggregation of NFTs on the Ethereum (ETH) blockchain. In particular, when the Bitcoin version of NFT “Ordinals” marketplace was opened in March 2023, Magic Eden’s share of the Ordinals market surged to over 50% in just a few days.

connection:Magic Eden Expands in Bitcoin NFT ‘Ordinals’ Market