Collection, a non-fungible token protocol, has rolled out a DEX proposal that enables users to develop pools for liquidity meant for targeting specific NFTs.
Users are able to establish criteria such as setting parameters for prices or not allowing pools for certain collections to trade NFTs quicker and easier. Other criteria include socially curated lists and in-collection traits. Merkle proofs are at the basis of the new protocol, allowing users to state which particular NFTs they look for, based on the token’s ID. Furthermore, users can target individual PDFs, groups defined by users, or entire collections. The news comes from Gomu, a non-fungible token infrastructure startup that is also a core contributor to the open-source project.
Through the Decentralized Crypto Exchange, users can search for NFTs grouped on rarity, traits, or OpenSea bans. For example, if someone wants to acquire a BAYC NFT with a specific trait, like a solid platinum hat, they discover that this trait can be common to just 0.54% of the NFT collection. Instead of going to different marketplaces to search and place bids, Collection users can set up liquidity pools and invest Ethereum. Those who sell BAYC NFTs with solid platinum hats can also deposit the tokens in the liquidity pool and get paid instantly.
Collection will roll out on Goerli, Ethereum’s testnet, prior to launching on the mainnet later in 2023.