I’m posting this on behalf of the Wonderland team. The entire proposal can be viewed here (https://defi-wonderland.notion.site/Sudoswap-Wonderland-s-Proposal-for-Sudoswap-Shared-Pooling-5b633b7830f44d0faebfe3b8cb1f4e27).

Introduction

We at Wonderland are big supporters of Sudoswap and believe it can become a crucial pillar of DeFi. We plan to contribute to ensuring its success and are thrilled to be introducing the concept of shared pooling to Sudoswap.

Shared pooling will allow users to provide liquidity into already existing pools. This should solve many existing pain points, allowing Sudoswap users to dramatically simplify the pool setup process and be free of activity tinkering to achieve the best returns.

Shared pooling will also solve major liquidity fragmentation issues and will unlock pool tokenization, which will be helpful in composability, NFT fractionalization, and on-chain NFT pricing oracles.

Our shared pooling innovation should lead to more liquidity being provided to Sudoswap as barriers to entry will be dramatically reduced. Users will be able to target the best-performing pools and the highest returns at reduced costs while their liquidity is actively managed for them.

Who is Wonderland?

We are a team of top Web3 researchers, developers, and operators who believe that the future must be open-source, permissionless, and decentralized.

We partner with some of the most successful and promising protocols in Web3 – including Yearn, Connext, and Keep3r Network – to find solutions to complex engineering challenges and help them reach their full potential.

We focus on building deep, mutually beneficial partnerships with protocols. We do not clock out to simply “get the job done”. We are an extension of our partners’ teams, delivering unparalleled guidance and support over the long-term, and standing by partners as they navigate the exciting (and sometimes challenging) world of Web3 and decentralized finance. The experienced Wonderland team has seen it all – the good and the bad – and believes being in it together is the way forward in Web3.

What is Shared pooling?

When discussing AMMs, people often envision pools of money where multiple users can provide liquidity. Sudoswap is the most popular NFT AMM, but currently, it only supports single-user pools. In the NFT context, shared pooling allows users to participate in an NFT-ETH pool together. When NFTs are deposited, users no longer own the NFT itself but instead possess a position represented by an LP token.

But why do we care so much about shared pooling?

Shared pooling is not only a powerful solution to reduce liquidity fragmentation, but also unlocks other benefits that will take NFTs and DeFi to the next level.

For instance, shared pooling enables the ability to tokenize pools, allowing users to invest in an entire collection or gain exposure to multiple NFTs with a single LP token. Additionally, fractionalization of NFTs would be possible, enabling investors to gain exposure to the price of an NFT without paying the whole amount.

Shared pooling could also enable the creation of an on-chain NFT pricing oracle that could be used for lending, derivatives markets, and other DeFi applications.

Which NFTs can be shared pooled?

When considering shared pooling for NFTs, it is essential to remember that it only makes sense for NFTs with similar pricing. This is because all NFTs in the pool are offered at the same selling price, and the pool can only buy any NFT at that same price. Although using an off-chain rarity oracle to determine the price is possible, a trustless and permissionless shared pool would only work for price floor NFTs.

By voting “FOR” this proposal, the DAO agrees to set aside 200,000 SUDO via LlamaPay to be distributed to Wonderland upon completion of the task. The tokens will be vested linearly over the course of four months.

By voting “AGAINST,” you do not support this proposal.