Proposal: Enabling a zero-fee NFT to NFT exchange for Nouns by atomic0 [atomic zero]

Overview

Hey everyone! For the last few weeks the atomic0 [atomic zero] team has been drafting our first Nouns proposal. We’ve sought extensive community feedback and will be putting it on chain very soon. We’d love to hear your feedback, so please feel free to comment on this thread, DM me on Twitter, or on Discord (robert#8239). Thank you!

Enabling a zero-fee NFT to NFT exchange for Nouns by atomic0 [atomic zero]

Goal

Enable zero-fee inter-collection trading/swaps for Nouns and Nouns derivatives on the atomic0 NFT to NFT exchange.

Why?

Noun “OTC” trading is currently inefficient in a web3 environment and is usually done in Discord or other social media. On-chain execution can be coordinated with an added layer of curation/search to simplify these otherwise complex trades greatly. Interested in a noun for 100 lil nouns + 15ETH? Looking to swap your punk for 2 nouns? Looking to pay additional WETH to trade your higher noun ID for a sub-100 ID? These trades will be possible to post to the atomic0 exchange with no fees, be executable by anyone, and can all be open at once until one of them is filled.

Today, there is no NFT-to-NFT exchange, only OTC trading tools. Nouns can enable this radically new style of trading, which is uniquely possible with NFTs while incentivizing Nouns proliferation.

The proposal

Across the entire atomic0 swap exchange experience, the benefits of Noun-involved trades are highlighted:

The atomic0 team will use funding from this proposal to meet the deliverables and timeline (below) and guarantee zero-fee swaps where Nouns + derivatives are involved for the lifetime of the atomic0 exchange. Where Nouns swaps are found throughout the experience, for example, on an individual punk page with a Noun-involved swap, the swap is highlighted as being a “Nounish” zero-fee swap. Swaps comprised solely of non-Noun assets (BAYCs, Punks, etc.) on atomic0 will be subject to a 0.5% gross fee on the estimated value of the swap.

Implementation details and mocks

Individual punk page with an example of noun proposed bids/swaps:

Asset selection:

The swap creation page post-asset selection:

Considerations

  • No fees, ever, where Noun or Noun derivatives are included in swaps for the lifetime of the atomic0 swap exchange.
  • An infinite number of swaps can be created (using Seaport) without the NFTs leaving your wallet until an order is filled.
  • Supports multi-sig (Safe) from day 1.
  • Opensea “Marked as stolen” support/warning.
  • The atomic0 exchange utilizes Seaport (and the Opensea conduit, so no approvals if approved on OS), and NFTs don’t leave your wallet until a swap is executed.
  • Our plan is to bootstrap with Nouns DAO funding and provide benefits to the Nouns DAO with our no fee swap product. We plan on a sustainable long-term roadmap via atomic0 fees (0.5%) on other collections where Nouns are not involved in trades (e.g. Wrapped Punks to BAYC)
  • Additional proposals/products are possible with fee distribution back to the treasury after we’ve cut our teeth.
  • atomic0 is not yet VC-backed and is wholly founder-owned and operated.

Our Story with Nouns/web3

We launched a proof of concept zero-fee NFT marketplace which was the first on Ethereum to have both zero fees and optional royalties (back in June). Several Nouners used it to field OTC interest in their NFTs, but notably, yyybee used it to sell Noun #227, and vapeape (nounder) used it to sell his V1 Cryptopunk. Many other traders and collectors in the space have executed trades on the platform, including Franklin, who actively lists his apes on atomic0.com. While I don’t yet have a Noun, I’m still closely watching and bidding on the auctions. Last month, we also built the first WETH, non-custodial bidding solution for punks. This proposal was made possible with Noun delegations by cryptopunks.eth and brennen.eth.

Deliverables and timeline

  • Upon proposal execution → Noun fees are removed on atomic0.com for all Noun listings, including derivatives.
  • Four weeks from proposal execution → Individual Noun to Noun or Noun to Other 721 (wrapped punks, BAYC, etc.) swap creation/execution enabled.
  • Eight weeks from proposal execution → Trait and ID array on the “want” side of trades enabled.
  • Stretch goal → Automated recurring emails with the top swap offers received for your wallet.
  • Stretch goal → Automated price adjustments and bulk swap creation when Seaport 1.2 is deployed on-chain.

FAQ

Why not build this as a stand-alone Nouns-specific website (e.g., nouns-swaps.com)?

  • We’ve seen project-specific marketplaces come into the fold recently, such as Apecoinmarketplace and nounish.market. The utilization is near-zero compared with generalized marketplaces (Opensea, Looksrare, etc.). Embedding the aforementioned noun-specific benefits into the larger atomic0 swap ecosystem will incentivize and propagate nouns more than isolating noun swaps onto a Noun-only exchange. In other words, if people can also use the platform to trade their punks for apes, there’s a higher chance of Noun propagation due to incentives (no fees) for Noun-involved trades.

How does this contrast with Proposal 46 (Marketplace Pod Proposal)?

  • Our roadmap is entirely centered around enabling NFT to NFT trading, a stretch goal of proposal 46 (noun.market). Our deliverables focus on NFT to NFT, which makes for minimal overlap with noun.market’s ETH to NFT focus. We see noun.market as complementary in some areas, including derivative identification for collection no-fee designation.

Wen open source?

  • We intend to open-source many components over time to allow for community contributions to the product, specifically on the front end. This will happen as we enable on-chain order creation and other helpful functionality throughout the development.

How does the atomic0 swap product contrast with existing OTC solutions such as NFTTrader, Sudoswap OTC, and Swap Kiwi?

  • The websites mentioned above are great OTC tools for situations where you’ve already found a counterparty for your swap. For example, you own a Noun, have fielded interest on Discord, and have found someone to swap your Noun for a punk. We take it up a notch with an exchange-style format allowing you to field interest across many collections and NFTs, simultaneously. You could make the same offer to 100 punks of your liking, for, all at once, and have them all open and executable on-chain until someone fills the swap. We also support trait, collection, and ID-array bids and have many added layers of discoverability for swaps.

Will this require ongoing Nouns funding for maintenance?

  • Nouns support will sustain the platform’s development through our roadmap mentioned above. Until fee-generating swaps from other collections, such as BAYC (where Nouns aren’t included), can sustain ongoing costs to operate the exchange. We may put through other proposals to add additional functionality or for long-term operational support, depending on community interest in the exchange.

Do you have a plan for on-chain swap storage?

  • Off-chain swap storage is cheaper to implement and doesn’t require additional helper contracts, so we’re prioritizing them here for our MVP. We are open to implementing on-chain swap listings depending on the appetite, utilization, and community feedback. Fortunately, Seaport does allow for the storage of order hashes in their contract, so there is undoubtedly a path to implementation.

Team

Funding Logistics

39 ETH to 0x12f3da22832ade66d63c624b8c40726db1124faf (atomic0.eth, a multisig controlled by Robert and Alex)

2 Likes

WHAT?
There are at least 3: sudoswap. nfttrader and swap.kiwi.
swap.kiwi is even owned by a nouner! (@niftynaut)

To be fair, I even stopped reading after this. Nouns have even been traded at swap.kiwi already. not sure about the other platforms.

It seems that, if we were to fund something, it would have to offer something we cannot already do/are already doing at other platforms.

Thanks for taking the time to respond!

I’ve chatted with @niftynaut and have a great amount of respect for what they’re building. In fact, I used swap.kiwi to swap a v1 punk of mine just a couple of weeks ago.

We’ve addressed the overlap and compared what we’re building here in our proposal. Please let me know if you have any feedback to this section “How does the atomic0 swap product contrast with existing OTC solutions such as NFTTrader, Sudoswap OTC, and Swap Kiwi?”

To summarize, we’re planning in the direction of an NFT to NFT exchange, rather than an OTC tool for when you’ve already found a counterparty.

Have to break this down into different perspectives for obvious reasons.

Noun perspective:

  • I don’t think it is wise for nouns to take sides in marketplace turff wars. There is obviously a race to the bottom in terms of market fees and a black/white view in terms of royalties. I don’t think we as a DAO should take sides here.
  • I don’t see nouns as part of a gated community marketplace. If you want to add nouns - feel free, but centralising which NFTs can be traded with is not very nounish.
  • Total amount of people selling nouns atm is probably less than 20 individuals. The number of people just wanting to swap a noun for something else is probably much smaller even.
  • I don’t see how this proliferates nouns.

Punk perspective:

  • iirc you are funded by investors, so the not VC backed argument is slightly misleading. Are there any nouns invested?

swap.kiwi founder perspective:

  • sad seeing this now after you asked me (before all of this here) how we as kiwi will set up our upcoming marketplace - without sharing that you are working on the same idea :man_shrugging:

Heard about this in the Noun Square space the other day. Really thought out. Good luck with your proposal. You have mine and The Fashion Dao’s support!