Goal
Enable zero-fee inter-collection trading/swaps for Nouns and Nouns derivatives while funding a self-sufficient tool for other collections to trade NFT to NFT.
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. Interested in a noun for 100 lil nouns + 15ETH? Looking to swap your punk for two nouns? Looking to pay additional WETH to trade your higher noun ID for a sub-100 ID? These trades can be posted 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 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.) 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 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 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.
- We plan 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 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, ayyybee 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. A big thank you to all the Nouns who gave feedback on this prop before it went on-chain!
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 this contrast with existing OTC tools such as NFTTrader, Sudoswap OTC, and Swap Kiwi?
- The websites mentioned above are great 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 noun swap offer to 100 punks of your liking, 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
29 ETH to 0x12f3da22832ade66d63c624b8c40726db1124faf (atomic0.eth, a multisig controlled by Robert and Alex)
