Shared Escrow for AMMs

Product Improvement Impact Program
1

  1. Abstract
    AMMs are a great way to drive liquidity to NFTs and great for users who want to be able to trade hands off. Currently it’s hard to AMM on ME because it’s so capital inefficient needing to have idle SOL in every individual offer. Shared escrow already exists for bids, seems it might not be the hardest to link it to AMMs and improve the QOL for any AMM providers.

    Allowing for shared escrow means drastically less SOL required in offers to achieve the same result, and allows the SOL to be invested in more NFTs to allow AMMing on more collections for the same amount of SOL invested.

  2. Motivation

    • As an AMM provider, would love to be able to be a lot more capital efficient and provide liquidity on more collections by having less idle SOL stuck in bids that will likely never be taken.

  3. Key Terms

    • AMM (Automated Market Maker; pools which trade automatically on Magic Eden)
    • Shared Escrow (Using a single escrow balance for all offers within your AMMs)

  4. Specification

    • Add shared escrow for AMMs on ME to draw SOL from a single balance rather than needing separate balances for each collection.
    • It exists already for bids on ME, so would think that adding the functionality for AMMs wouldn’t be too hard to integrate.

  5. Benefits/Risks

    • Benefits are driving more users to MEs AMMs. Currently, competitors allow for shared escrow allowing users to AMM on a smaller budget so becoming competitive in that market should drive more AMM providers to use ME.
    • Risk would be that the time is spent developing this but it does not lead to significant growth in the AMM market meaning the time would have been wasted. But quality of life would have been significantly improved for any AMM providers.

  6. Outcomes

    • Increased liquidity on ME for NFT collections and better user experience being able to AMM with less capital.
2 Likes
2

Solid proposal – shared escrow for AMMs is a real step forward. It helps LPs stretch their SOL across multiple collections without losing control.

That said, if you want this to pass a vote, you’ll need to make it crystal clear for everyone – not just LPs and devs.

Most people don’t understand how fragmented capital in AMMs works. Without a simple explanation, they might ignore it or even vote against it just because of the jargon.

Make it visual. Make it simple. Make it relatable.

Let’s help people want to vote yes. This deserves to be implemented.