Hadeswap is an AMM-powered non-fungible token (NFT) marketplace on the Solana blockchain that offers instant NFT liquidity, 0% platform fees, and 0% royalty fees.
NOTE: It will soon implement 0.5% platform fees that will be dedicated entirely to its ABC NFT collection holders. As for the royalty fees, you will soon have the option to pay your favorite collections (optional royalties).
Table of Contents
How Does Hadeswap Work?
Now, you’re probably asking what is with this NFT AMM trend and why many of them are popping up recently. Let’s start with the NFT space’s liquidity issues.
NFT marketplaces rely on price agreements between buyers and sellers for a trade to complete. A seller sets a price and waits for someone willing to pay for it. And this waiting phase keeps a large chunk of assets from getting traded, making them very illiquid.
What if there’s an instant way to sell these static NFTs? This is where an AMM can help.
An NFT AMM like Hadeswap allows collectors to create liquidity pools and instantly sell their assets, a feature that common NFT marketplaces like OpenSea and Magic Eden currently don’t have.
AMMs were previously used only on decentralized exchanges (DEXs) such as Uniswap but are now being tested by an increasing number of NFT platforms.
Hadeswap provides both types of offerings:
- The ability to buy and sell NFTs through an AMM pool, and
- Create liquidity pools and earn passive income from the fees.
You can even set limits on the buy/sell orders on your pool, allowing you to set your preferred price instead of accepting the market price when the orders were placed.
Providing Liquidity VS Trading
Providing liquidity allows you to make instant sales on your digital assets, which is ideal when you need immediate liquidity. The only downside is that you don’t get to decide your NFT’s price, as an algorithm does, which means that you may have to sell at a loss.
Trading, meanwhile, is the common way of selling NFTs, where you list digital assets at your desired price. But unlike being a liquidity provider, it does not guarantee immediate sales as someone needs to agree on your price before a trade can happen.
In the next sections, we’ll show you how to earn passive income by becoming a liquidity provider, as well as how to buy or sell your NFTs via Hadeswap.
How to Create a Liquidity Pool
Creating a liquidity pool in Hadeswap is not as intimidating as it sounds. In fact, almost anyone with experience in NFT trading can easily understand it.
You will need a Solana-based wallet in order to connect to the platform. We highly recommend Phantom.
Here’s how you can provide liquidity on Hadeswap:
Connect to Hadeswap
Head over to hadeswap.com and connect your web3 wallet by clicking on the top-right section that says “connect wallet.”
Begin Pool Creation
Connect your wallet and select the ‘My Pools’ button in the screen’s upper-right corner.
After that, click ‘Create Pool.’
This should bring you to Step 2.
Select an NFT Collection
On the search bar, enter the name of the NFT collection from which you want to create a pool. For this guide, we chose ‘Mechs of Solana’.
Choose a Pool Type
Hadeswap allows you to create three types of pools. The first one allows you to earn SOL tokens through NFT payments, while the second pool offers the opposite, which lets you earn NFTs through SOL payments.
But if you want to potentially generate higher profits from your pool, you may want to select the third one, a combination of the first and second pool, which allows you to earn from trading fees. For this example, we will choose the third option.
Set Pool Parameters
On this page, you can adjust your pool’s parameters, such as fee, spot price, bonding curve, delta, and your chosen asset.
If you’re confused about the terminologies we’ve mentioned above, let’s briefly define each one.
| Fee | What you want to charge every time someone trades using your pool. |
Spot Price | This is the starting price for all your pool’s NFTs |
Bonding Curve | The price mechanism you want to apply for your pool. Here, you’ll get to choose between two options: Linear curve or exponential curve. |
Delta | The scale of price changes in your pool |
After reviewing the parameters you’ve set, click ‘Create Pool,’ located at the lower-right of the screen.
Approve the Wallet Transaction
Your wallet will prompt you to approve the transaction. Click it.
How to Buy NFTs
Before you can purchase NFTs on Hadeswap, make sure that you have enough funds to purchase digital assets and cover the transaction fees in your wallet. As a reminder, Hadeswap currently charges 0% transaction fees.
Connect Your Wallet
Connect your wallet to the Hadeswap website.
Choose Your Collection and NFT
Click the ‘Collections’ tab on the screen’s upper-right side of the webpage. Search for your desired collection on Hadeswap’s extensive library. For this article, we will buy ‘Mechs of Solana.’
Next, select the NFT you want to purchase from the collection. For this one, we picked ‘Mech #1692’.
Approve the Transaction
Once done, click the ‘Swap’ button on the lower right corner of the screen.
Then, approve the transaction on your wallet.
How to Sell NFTs
Selling your NFT on Hadeswap grants you instant liquidity, unlike typical marketplaces. You will need a web3 wallet and a Solana NFT.
Here’s how you can instantly liquidate your digital assets:
Connect Your Wallet
Connect your wallet to the Hadeswap website.
Select the ‘Collections’ Tab
Go to the ‘Collections’ tab.
Go to the NFT Collection’s Page
Search for your NFT collection and click the ‘Sell’ button. In this example, we are selling a Mechs of Solana NFT.
Choose the NFT You Want to Sell
Select one or more NFTs you’ve purchased from that collection and click the ‘Select’ button.
Note: In case your purchased NFT does not appear, simply refresh the page or disconnect and reconnect your wallet on Hadeswap.
Click the ‘Swap’ button at the lower-right corner of the screen. It’s time to say goodbye to our Mech #1692.
Approve Transaction
After clicking the ‘Approve’ button, don’t leave your wallet yet and wait for the ‘success’ notification. Sometimes, the transaction may fail due to some technical issues, prompting you to do this step again.
Closing Remarks
Note that Hadeswap is still in beta mode and has no audits yet. It reminds current and would-be users to use its marketplace’s services with caution.
To join Hadeswap’s growing community, you may visit its Twitter and Discord accounts. Furthermore, you can also purchase its ABC NFT collection at OpenSea and Magic Eden.
If you want a similar platform to Hadeswap but on Ethereum, we highly recommend you try Sudoswap as they have striking similarities.
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