Overview
NFTX is a protocol focused on creating concentrated liquidity and financial primitives for NFTs. With the V3 release, NFTX introduces a bespoke AMM (a fork of Uniswap V3) and vault primitives that convert NFT collections into tradeable ERC20 vTokens. The platform enables instant buys, sells, and swaps of NFTs by pairing vTokens with WETH and exposing concentrated liquidity positions so liquidity providers (LPs) can target ranges and capture vault fees more efficiently. NFTX’s V3 innovations include ETH-based vault fees, dynamic premium fees, and a redesign of the swap widget to support both ERC20 and NFT trades.
Core Capabilities
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Concentrated Liquidity AMM: NFTX V3 runs its own AMM derived from Uniswap V3, with pools using vToken/WETH pairs and two fee tiers (notably 0.3% and 1%). The AMM lets LPs concentrate liquidity around price ranges to increase capital efficiency and fee capture.
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Vaults and vTokens: Collections are fractionalized into ERC20 vTokens, giving users exposure to a collection’s TWAP price without purchasing whole NFTs. Vaults allow instant liquidity: minting vTokens from deposited NFTs and redeeming NFTs for vTokens/ETH.
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ETH-denominated Vault Fees: V3 transitions vault fee payments to ETH, using vToken TWAPs to compute fee amounts. This simplifies fee settlement and aligns incentives for sellers and LPs.
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Dynamic Premium Fees: NFTX V3 implements a dynamic premium that decays (for example, from a high percentage down to 0 over a fixed interval), paid in ETH and intended to reward original sellers and manage price discovery and order flow.
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Swap Widget and Token Interoperability: The redesigned swap interface supports both ERC20 ↔ NFT and NFT ↔ NFT flows. Users can swap between vTokens and other ERC20s or receive different collection tokens for sold NFTs.
Key Features (numbered list)
- Instant Buy/Sell/Swap: Swap ETH for NFTs or NFTs for ETH seconds, enabled by vToken liquidity and the NFTX AMM.
- Yield for Liquidity Providers: Provide concentrated liquidity to earn a pro rata share of AMM and vault fees, with fee distribution tied to where liquidity sits relative to market price.
- Fractionalized Ownership: Buy fractional exposure to blue-chip collections (e.g., $PUNK) via vTokens and stake inventory to earn vault fees.
- Concentrated Liquidity Positions: Create targeted liquidity ranges to optimize capital efficiency and maximize fee capture on specific price bands.
- Cross-chain Deployments: NFTX supports Mainnet, Arbitrum, and Base deployments to broaden accessibility and reduce transaction friction.
How it works — simplified
- Connect your wallet: Access the app and authorize a wallet connection.
- Browse collections: Select a vault for the collection you want to buy, sell, or provide liquidity to.
- Buy / Sell / Provide liquidity: Use the swap widget to transact instantly using available vToken/WETH liquidity or mint/redeem via vault interactions.
Why use NFTX
NFTX V3 is designed for users who want immediate, composable liquidity for NFTs and for LPs seeking yield from NFT markets. By combining vTokens, a custom Uniswap V3-style AMM, and ETH-based fees, NFTX makes it possible to trade fractionalized NFT exposure, capture vault revenue, and design concentrated liquidity strategies similar to fungible token markets. The dynamic premium fee adds a mechanism to reward sellers and manage price-impact for newly listed assets, while TWAP pricing makes valuation more robust for automated trading and treasury operations.
Recommendation and considerations
NFTX is well-suited for collectors and traders who want quick market access to many NFT collections without purchasing whole pieces, and for liquidity providers seeking to earn both AMM trading fees and vault fees. Users should be mindful of smart contract risk, range selection when providing liquidity, and the implications of dynamic premium fees on buy/sell pricing. As always, review on-chain contracts, deployment addresses for each network, and community channels (e.g., Discord) before allocating significant capital.
Final notes
NFTX V3 is an evolution of V2, running as a separate deployment set with fresh addresses. The platform emphasizes capital efficiency, fee monetization, and fractional access — bringing more familiar DeFi mechanisms to the NFT ecosystem while preserving the ability to mint, redeem, and swap NFTs instantly.


