We launched v2 of NFT Protocol into a public beta phase on April 21, 2022. This version of NFT Protocol requires that swap creators send their assets involved in the swap to the protocol where they are held in escrow awaiting a taker by paying gas for an on-chain transaction. We chose this architecture because it allows the protocol to operate entirely on-chain and limits attack vectors in pretty significant ways relative to the hybrid on/off-chain protocols that power most other NFT marketplaces and trading platforms. This architecture is a great fit for creators who mint from their own contract, intend to list and sell their creations at a fixed price, and simply need a safe and affordable means of listing their creations for sale.
With the v3 update to NFT Protocol we aim to broaden our appeal within the NFT space with a new swap architecture that doesn't require sending the assets involved in a swap to the protocol to be held in escrow awaiting a taker.
Creating a swap in v3 will require users to pay gas for one-time (unless the approval is later revoked) token approval transactions for all ERC 20s and NFTs involved in the swap and then pay gas to submit a makeSwap call to the protocol. The gas fee associated with the makeSwap call will be noticeably less than the gas required to actually transfer the assets involved to the protocol as in v2.
This architecture will allow users to create decentralized swaps more affordably, list assets for sale or make offers on multiple platforms, and keep their assets in their wallets until they're sold.
When creating a swap on the NFT.org DEX the default swap type will be this new type of swap, but users will be able to select if they'd prefer to create an escrow swap.
Additional features that will be included in the v3 update in Q3 and subsequent v3.1 update in Q4 of the protocol include:
Programmable royalties - creators and NFT project founders will be able to customize the royalties extracted from swaps on NFT Protocol and how they are distributed.
Programmable fees - protocol fees will be dynamic (flat or value-based) and adjustable.
Adjustable swaps - swap creators will be able to make certain adjustments to the TAKE side of their swap.
Swap expiration - swap creators will be able to specify an expiration date and time for their swaps.
Advanced accounting - NFT Protocol ETH/MATIC balances will be spendable on the protocol without first having to withdraw (currently in Q&A).
Auctions - auction functionality will be built into the escrow swap architecture such that assets up for auction will be guaranteed to sell so long as any specified reserve price has been met.
Collection offers - make an offer for any NFT from a given collection.
The focus for the NFT.org DEX as we progress towards v3 of NFT Protocol will be on accommodating within the UI at NFT.org the new features contained in v3 of the protocol.
Additional features the applications team will be working on include:
Chat - a means of communicating with others via the NFT.org DEX interface.
Notifications - a means of users opting in to being notified of events pertaining to their address(es) that happen on the NFT.org DEX (currently in Q&A).
External data - bring price history and data into the application from external sources (currently in Q&A).
Social media bot - a bot that relays activity on NFT Protocol to Twitter, Discord, and Telegram (the bot is already live in a Q&A stage on all three platforms).
SDK - we are building a SDK that will make it easy for developers to build a custom frontend powered by NFT Protocol.