Codex and Sudoswap: A revolution in NFT trading and liquidity
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Sudoswap relies on Codex as their definitive single source of truth for historical data, significantly reducing engineering and AWS costs by hundreds of thousands of dollars.
Sudoswap has emerged as a pioneer in DeFi innovation and has revolutionized the world of Non-Fungible Tokens (NFTs) by transforming them into fungible liquidity pools. NFT trading is unique due to the non-fungible nature of the asset class. Unlike ERC-20 tokens, NFTs are not readily divisible or tradable in fractional forms – increasing the barrier to entry and reducing liquidity.
Compared to conventional cryptocurrency projects, NFT collections often have a much smaller quantity, ranging from a few hundred to about ten thousand tokens usually. These limitations make trading on platforms like OpenSea challenging, with sellers facing extended waiting times to find liquidity, and buyers encountering unresponsiveness to their bids.
Sudoswap changed the game by offering a Uniswap-like DEX experience for NFT traders. Sudoswap uses linear, exponential, and other bonding curves to pool multiple assets from one collection together. Unlike other NFT marketplaces, there is always liquidity for trades at the expense of slippage – a tradeoff many users are excited to take advantage of.
“Working with the Codex team has been a game-changer. Codex seamlessly provides all the data we need, when we need it.
If the data we want isn't currently available, the development team makes it available for us. I wish all of our integrations went this smoothly.”
Owen,
Co-Founder of Sudorandom Labs
Innovative protocols demand intricate architecture and often lack out-of-the-box solutions for development support. Sudorandom Labs faced unique requirements beyond the conventional subgraph model:
- Fetching metadata for each NFT
- Accessing images from IPFS
- Managing collection-level data
Integrating off-chain data with on-chain transactions proved to be difficult. While exploring The Graph for indexing infrastructure, Sudoswap realised that this approach would not be flexible enough to cover all the necessary use-cases of the protocol.
Building a custom indexer was considered to support Sudoswap’s growth. However, as a burgeoning DeFi protocol, developing a solution in house seemed neither cost-effective nor time-efficient due to the need for multiple engineers to build it as well as ongoing maintenance.
Sudorandom Lab's search for a provider led them to Defined, an enterprise solutions partner capable of building data pipelines for their unique protocol. Defined became the invisible infrastructure layer for Sudoswap, providing custom indexers for NFTs that seamlessly merged on-chain and off-chain.
For over a year, Sudoswap has relied on Defined as their definitive single source of truth for historical data. A partnership that has yielded substantial savings for Sudoswap, slashing potential engineering costs and AWS fees by hundreds of thousands of dollars. Moreover, the engineering support from Defined accelerated Sudoswap's development, enabling them to iterate and optimize their V2 version even faster.
With Defined as a key partner, Sudoswap was able to focus on their core product, reduce costs, and achieve more agile development—a victory for any development team.