Magic Eden debuts Automated Market Maker charging zero fees
Renowned NFT marketplace Magic Eden has launched an Automated Market Maker (AMM) ecosystem, allowing users to function as sellers, buyers, and bilateral Liquidity Providers (LPs). The platform has reduced the Maker fee to zero, while the liquidity pools contain a 1.3x fee multiplier ($50,000 prize pool).
Automated Market Maker launched
Magic Eden announced the debut of an automated market maker (AMM) on the Solana blockchain. The decentralized exchange will not charge customers marker fees with the liquidity pool containing a 1.3x multiplier ($50,000 prize pool). The fee multiplier will go to the providers of the liquidity pool.
The platform enables users to become liquidity providers. Users can manage to sell LPs, buy LPs, and double LPs effectively since the multi-item sale is turning out to become onerous.
The AMM by Magic Eden is a trading platform that operates like a vending machine, uninterruptedly displaying the selling price for Solana and NFT. Buyers and sellers will make a trading market known as a “Liquidity Pool,” enabling them to manage different NFTs and then create sell and buy orders accumulating a commission as income.
Liquidity pools
The buy-side LP is attributed to having many collection submissions possessing different prices. Other than placing each price independently, the user can describe using terms like pricing curve type, the maximum buy price, and amount of solitary buy orders, incremental estuary, and enabling of royalty payment. For instance, the marketplace looks for the adjusted price below the net price to
Sell-side LP is equivalent to the numerous listings having different prices. The platform simplifies the entry of prices by enabling users to use keywords to achieve the necessary sale.
Double-sided LP contains both buy-side and a sell-side. It works like the normal market where users can exercise both buy and sell sides. Users can earn fees from both the sell and buy sides.
The AMM mechanism by Magic Eden makes the attributes of sell-side, buy-side, and double-side liquidity pools. The technology makes it easy for users to create, revise and revoke orders irrespective of the size of their LPs.
