AMM Pools

After minting, primary liquidity users are free to contribute their minted SFTs to permissionless pools.

Since DoubleMarket uses semi-fungible token standards, such as ERC-1155 (and potentially ERC-6909 in the future), the most viable AMM protocol that currently supports ERC-1155 tokens would be sudoswap.

Sudoswap is typically used for trading NFT collections. However, there is no reason it cannot be used to trade other ERC-1155 tokens, such as tokenized options positions.

Options in general share certain characteristics with NFTs. Every monthly expiration series is a new collection, and every strike is a unique feature.

Why not use ERC-20 tokens?

We believe that tokenized derivative positions should be a base DeFi building block, similar to how Ethena is becoming the default collateral for DeFi and even CeFi. ERC-20 tokens would be preferred as they are much more widely supported than ERC-1155 tokens at this time. However, for long-term sustainability and potential minting of hundreds of different series of options, ERC-1155 tokens are more suitable, minimizing gas costs and reducing contract duplication.

Protocols such as Uniswap do not currently support ERC-1155 token pools. However, Uniswap v4 will likely use semi-fungible token standards internally, making