• Index
  • Resources
  • NewNewest
  • +Submit
    • Submit New...
    • Index
    • Resource
    +
  • Interchain info © 2025

  • All
  • Index
  • Resources

Interchain Info

Support ICI

Premium Services
Send feedback
Stake with our Partner

Social

Twitter
Discord
Telegram

Links

Terms of Service
Privacy Policy
Documentation

Spark Family

Spark IBC
Airdrops

Interchain info © 2025

Caviar
Caviar

Caviar

NFTsDeFiTools & Infrastructure

Caviar is an on-chain, gas-efficient automated market maker (AMM) designed for trading NFTs, both whole and fractional, using ERC20 tokens and ETH. It uses liquidity pools and automated pricing algorithms to replace traditional order book models. Users can earn trading fees by providing liquidity to shared or custom pools. Caviar’s unique features include fractionalization of NFTs, customizable liquidity pools, and an emphasis on gas efficiency.

Introduction

Caviar is a decentralized, on-chain AMM (Automated Market Maker) protocol that facilitates the trading of non-fungible tokens (NFTs) with Ethereum (ETH) or ERC20 tokens. Designed with a focus on gas efficiency, it allows users to trade NFTs in both whole and fractionalized forms. This approach provides liquidity without the need for direct buyer-seller interaction by utilizing liquidity pools and AMM algorithms to determine pricing based on market supply and demand dynamics.

Liquidity Pools

Caviar operates using two main types of liquidity pools: shared pools and custom pools.

  • Shared Pools: These pools are open to all users who wish to provide liquidity. Each shared pool supports a specific NFT collection and a reserve asset (e.g., ETH), allowing users to deposit NFTs and ERC20 tokens into the pool. These pools use the xy=k invariant to adjust prices as trades occur, ensuring a seamless and automated trading experience. Shared pools categorize NFTs based on desirability (e.g., floor, rare) to optimize liquidity.

  • Custom Pools: Liquidity providers can create custom pools, which offer more advanced settings like adjustable fees, concentrated liquidity, flash loans, and stolen NFT filtering. These pools are owned and controlled by the creator, who can set specific trading parameters to tailor their pool to different market needs.

Buying and Selling NFTs

Users can trade NFTs within Caviar’s ecosystem through its intuitive interface. Traders have the option to buy or sell whole NFTs or fractionalized portions of NFTs. Fractional NFTs are represented by ERC20 tokens, which can be bought and sold in specific sub-pools based on their rarity or desirability.

  • Buying: Users can buy either whole NFTs or fractional NFTs from available pools. For fractional NFTs, Caviar issues ERC20 tokens proportional to the ownership share of the purchased NFT.

  • Selling: Similarly, NFTs can be sold back to the pool for the reserve asset (ETH or ERC20 tokens). Fractional NFT holders can sell their share of ownership back into the pool, facilitating liquidity and trading opportunities.

Fractionalization and NFT Wrapping

One of Caviar’s most significant innovations is fractionalization. This feature allows users to divide an NFT into smaller ERC20 tokens, enabling partial ownership and easier trading of high-value NFTs. These fractional tokens can be wrapped into ERC20 tokens or unwrapped back into NFTs based on user preferences.

Impermanent Loss

As with any AMM, Caviar users providing liquidity may experience impermanent loss (IL). IL happens when the price of assets in the liquidity pool fluctuates, potentially resulting in fewer NFTs or less ETH than originally deposited. However, liquidity providers earn a 1% trading fee on every swap, which can help mitigate or offset IL over time, depending on the volume of trades and the volatility of the assets involved.

Conclusion

Caviar offers a highly flexible, gas-efficient platform for trading both whole and fractional NFTs. Its AMM model, coupled with customizable liquidity pools and fractionalization, positions it as a key player in the NFT trading ecosystem, providing opportunities for both traders and liquidity providers to benefit from decentralized, efficient NFT markets.

CONTENTS

  • Introduction
  • Liquidity Pools
  • Buying and Selling NFTs
  • Fractionalization and NFT Wrapping
  • Impermanent Loss
  • Conclusion

Related NFTs Indexes

  • Geckies

    Geckies
    Featured
    Verified

    Cute NFTs on the Stargaze blockchain, spreading love everywhere they go

    NFTs
  • Proto Towers

    Proto Towers
    Featured
    Verified

    Proto Towers is an NFT collection on the Stargaze blockchain with a unique collaboration model.

    NFTs
  • ZomBs

    ZomBs
    Featured
    Verified

    A horde of 1000 ZomBs is coming to Stargaze.zone! Catch them and pet them before they conquer the world!

    Collections
  • Hungrybera

    Hungrybera
    Featured
    Verified

    Hungrybera is a collection of 7,500 unique generative NFTs owned by the founding members of Ramen Finance.

    Collections
  • Kingdomly

    Kingdomly
    Featured
    Verified

    NFT and Token Deployment Made Easy

    Tooling & Analytics
  • CubHub

    CubHub
    Featured
    Verified

    AR-powered NFT project on Berachain that merges digital teddy bears with immersive community experiences.

    NFTs