How Hadeswap Is Redefining AMMs through NFTs ($HADES, NFTs and More)

We can't ignore this anymore; let's dive in.

AMMs are taking over.

Hate it or love it, @hadeswap is booming - and it's currently the #1 NFT AMM on Solana. Below are a few of my thoughts on AMMs, the upcoming $HADES token and the future of the protocol.

So... what is Hadeswap?

Well, first, let's talk about Automated Market Makers (AMMs). An AMM allows for digital assets to be traded in an automated, permissionless environment. This is achieved by utilizing liquidity pools rather than the traditional order book approach.

A good example of an AMM in practice is @orca_so. Orca is actually a Concentrated Liquidity AMM (CLAMM, for short), but for the sake of simplicity, we’ll just call it an AMM for now.

If you’ve ever traded on Orca, you know that swapping is almost frictionless in comparison to an order book, for example. This is because you are actually trading against a pool of tokens (a liquidity pool). Liquidity providers (LPs) are the backbone of liquidity pools (for obvious reasons).

LPs receive rewards for providing liquidity. Not every LP is a whale. Anyone can provide liquidity. With traditional order books, you need buyers and sellers. All an AMM needs is liquidity. Back in the day before AMMs, liquidity was a massive challenge for DEXs on Ethereum.

Back on topic: Hadeswap allows anyone to create pools and provide liquidity through NFTs. If you've ever wondered how selling NFTs instantly is possible (or why it’s happening), it is simply because NFTs have become more liquid than ever - and your favorite marketplaces have reacted accordingly.

Tokenomics

$HADES is an upcoming token that will be used for governance, delegations and upcoming Hades NFT auctions. 30% of the supply will be distributed to ABC + Hades NFT holders via staking rewards. ABC (the first NFT collection in the Hadeswap family) has pumped like mad because of this.

Team allocation:

25% of the supply goes to the Hadeswap team -> "2 years vesting with incremental monthly release that is fully executed if no tokens are sold.”

About the Hades NFT:

• The NFT will have a 30,000 supply

• Will earn staking rewards ($HADES).

• Access to exclusive $HADES auctions.

Emissions:

• "All $HADES used for auctions will be burned in exchange for emitting the NFTs.

• 5 daily auctions MINIMUM.

• Unstaking has a 21 day 'cool-down' period.

'• 500,000 $HADES to be distributed monthly.

Risks and Conclusion

Hadeswap has been absolutely crushing it. The protocol is quickly approaching $1.5M Solana volume. However, it is not currently audited.

It's a great platform, but it comes at a risk. There is tons of FUD around this. It seems like they have plans for an audit, though.

So, what do I honestly think about Hadeswap?

I like the team's execution. ✅

I can clearly see their vision. ✅

Their business model is disruptive. It just works. ✅

Even if you dislike the concept of AMMs, it's hard to ignore the passion here.

Overall: I like it.

I encourage you to DYOR. You can start by reading the whitepaper for yourself. AMMs are not perfect and come with their own set of risks. None of this is financial advice.

That's all for now. Subscribe for more. — Lite.