The problem KratoSwap solves

NFT markets still lag behind decentralised exchanges in terms of efficiency, despite the fact that platforms like Uniswap have made trading a seamless procedure. Finding someone to trade NFTs with on NFT markets takes time and effort. With an AMM, users may instantaneously exchange NFTs with others at a fair price as long as there is liquidity, eliminating the need to wait for an offer.

Through the use of an automated market maker (AMM), KratoSwap aims to make trading on NFTs easy for traders, running on Polygon.

• As an NFT AMM protocol, the project works by letting Liquidity Providers deposit NFTs and/or ETH into liquidity pools.
• The users can choose to either buy or sell NFTs (or both), deposit their NFTs and/or ETH and then indicate a starting price and percentage of price fluctuation.
• We are using an Exponential, Linear and Quadratic pricing mechanism to set the relationship between price and supply algorithmically.
• Now users can trade NFTs from the pool and earn trading fees as people trade from the pool. Every time an NFT is bought or sold, the price of another NFT algorithmically changes for the pool, based on the bonding curve. Users can choose to switch the pool parameters or withdraw assets anytime.
• Since there are as many pools as there are LPs, users can search through the different pools to find their desired NFT at their preferred price.

Challenges we ran into

• Deciding the pricing of an NFT on the platform, explored Chainlink and Reservoir API
• Researched which AMM functions to use, implemented Quadratic mechanism from scratch
• Made the platform run exclusively on Polygon, similar to how similar platforms like Hadeswap & Coral Cube are running on Solana
• Integrating Frontend & Backend to the deployed contracts