Uniswap’s moves to conquer the NFT market

Buying NFT on Uniswap? Now you can, with a marketplace aggregator and an AMM for decentralised purchases

All this and more for Web3! Uniswap, the largest decentralised exchange – over 1 billion dollars exchanged in the last 24 hours – is preparing for Web3 by expanding its service provision. The missing piece? A facility to buy NFTs in a totally decentralised manner. Uniswap promises to integrate NFTs in the autumn through its acquisition of the marketplace aggregator Genie and Sudoswap’s AMM protocol. 

Uniswap decentralising the NFT market

The first DEX to use Automatic Market Makers? The first decentralised exchange for daily trading? Uniswap – Hayden Adams’ brainchild, the DEX that has marked a before and after in the cryptocurrency industry. Uniswap remains true to its decentralising finance approach by working on a feature that allows the purchase of NFTs without intermediaries thanks to the liquidity pools typical of AMMs. Uniswap already uses an Automated Market Maker to provide liquidity to the exchange, i.e. it clears orders automatically thanks to price-determining smart contracts and liquidity pools. Now it is preparing to apply an AMM for the trading of NFTs on its platform as well.  In addition to having a fully decentralised system, Uniswap users will be able to choose from a huge variety of NFTs thanks to the acquisition of marketplace aggregator Genie. 

Genie’s acquisition in June

Uniswap acquired the NFT marketplace aggregator Genie on 21st June 2022. Genie provides several purchase options aggregated from various marketplaces, such as OpenSea or LooksRare, making its offer very broad. Why did the Uniswap team also choose to integrate NFTs into their products? “We see NFTs as one of the forms of value in the growing digital economy and a significant entry point to Web3 already. Uniswap’s mission is to offer a complete platform for digital economy. To mark the acquisition, Uniswap organised a USDC airdrop for anyone who has used Genie before 15th April 2022 or who owned one of the Genie Genesis NFTs. The airdrop will be launched in August and will be redeemable over the following twelve months. The integration with Genie will initially be available in the Uniswap web app, to eventually be rolled out to the APIs and facilitate developers as well. 

… and the Sudoswap integration in July

In a tweet on 22nd July 2022, Scott Gray of the Uniswap Product Team revealed that NFTs on Uniswap will also be supported by Sudoswap, an AMM-based marketplace. Sudoswap’s Automated Market Maker, released on 8th July, will make it possible to buy NFTs on Uniswap’s platform with an AMM, mirroring the operation of the exchange itself. In fact, thanks to Sudoswap’s AMM, people will be able to buy NFTs automatically thanks to liquidity pools, unlike traditional marketplaces that combine the supply and demand of sellers and buyers of non-fungible tokens. It is to all intents and purposes a totally decentralised NFT trading because all orders are managed on-chain through the use of smart contracts

NFTs will be available for purchase on Uniswap from next autumn. In the meantime, the DEX is engaging in discussions with its community to develop new features in the NFT and Web3 fields.