# Introduction

![](https://1815793865-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHyVQ2s6G62CO6qQhl7Ev%2Fuploads%2FCKqqwlh6hBcu32YiGNQv%2Fseacows%20_twitter%20\(2\).png?alt=media\&token=dc9b9273-caf1-4d7e-99a6-415711f9e0bf)

## What is SeaCows?

SeaCows is an AMM-based NFT marketplace to instantly trade NFTs. Aside from buying and selling NFTs, traders and web3 projects can create their own liquidity pools to receive LP earnings and provide maximum NFT liquidity.

### What is an NFT AMM?

An NFT AMM is the decentralised alternative to centralised marketplaces such as Opensea or Magic Eden. As opposed to a bid-and-buy model it utilises liquidity pools with which anyone can interact.

<figure><img src="https://1815793865-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FHyVQ2s6G62CO6qQhl7Ev%2Fuploads%2FLCk7o9c3b3b0fSRiBUtL%2FGroup%2058.png?alt=media&#x26;token=fbc38779-c3c9-4995-a517-a04358438dbd" alt=""><figcaption><p>SeaCows Overview</p></figcaption></figure>

### What problem Seacows Solved:

* Problem of today’s NFT AMM?
  * Sudoswap is the first NFT AMM get popular, but currently, it only supports single-user pools.For trader Pool, only the creator of pool could add/withdraw liquidity, this resulted in liquidity fragmentation across pool.

### What is Shared pooling?

* Seacows AMM solves the shared pooling Problem for NFT, shared pooling refers to the ability for multiple users(liquidity providers) to provide liquidity to a liquidity pool for a specific NFT-ETH trading pair.
* When users deposit their NFTs into the pool, they receive a proportional amount of liquidity pool tokens called LP tokens.
* These LP tokens represent the user’s share of the pool and can be redeemed for their share of the pool’s assets at any time.

### The power of SeaCows

1. **Shared Liquidity Model:** Every single liquidity pool created via the SeaCows protocol allows LPs to share liquidity for the same NFT collection. At the same time LPs earn yields based on their share of the pool.
2. **ERC721 & ERC1155 Compatibility:** LPs can create both ERC721 and ERC1155 based pools.
3. **ERC20 Compatible Trading Pairs:** Any ERC20 token can be used as a trading pair when creating a pool.

### NFT AMM Use Cases:

1. [**Degen NFT Trading**](use-cases/nft-traders)**:** As a trader, you interact directly with a smart contract that concentrates liquidity which makes NFT trading more efficient, secure, and cost-effective.
2. [**Gaming**](use-cases/gaming)**:** To blockchain games an NFT AMM provides a seamless and decentralised way to buy and sell in-game assets, while ensuring that there's always liquidity available for popular assets. All to increase player engagement and reduce fraud.
3. [**NFT Creators**](use-cases/nft-creators)**:** As an NFT Creator, you avoid any third-party marketplaces and can create your own liquid market with lower fees and more control over floor prices and royalties to ultimately guarantee greater financial benefits when monetizing your creative work.
4. [**DeFi**](use-cases/defi)**:** To DeFi protocols an NFT AMM provides a valuable addition offering increased liquidity, access to new markets, trustless trading, and seamless integration.
