Caviar V1 Review 2026: An NFT AMM on Ethereum

Caviar V1 is an NFT automated market maker protocol on Ethereum. It uses the constant product formula (x * y = k) and supports swaps between ERC20 tokens and NFTs. DefiLlama files it under NFT marketplaces and summarises it as the easiest way to trade and earn yield on an NFT.

The protocol has been tracked since February 2023. Its listed TVL is about $61,742, up 3.3% over seven days, and two audits are listed. It has no token of its own, and its social presence is the caviarAMM account.

Caviar suits users who like the AMM model for NFTs, where you trade against a pool instead of a single listing. Its small liquidity and unpublished fee details are the main things to weigh.

An AMM replaces an order book with a pool of assets and a pricing formula. Caviar uses the constant product formula, x * y = k, where the product of the two reserves in a pool stays constant. When someone buys from the pool, the price of what remains goes up. When someone sells into it, the price falls.

In Caviar's case the pool pairs NFTs with ERC20 tokens, so a trader can swap one for the other directly. Liquidity providers supply the assets, and in AMMs of this kind they usually earn a share of trading fees. That is the likely source of the yield described by the project, though the specific mechanics are not detailed here.

The trade-off is that pool prices come from the formula, not from a seller's chosen price. Thin pools can produce large price swings, and providers may find their holdings shifted toward whichever asset traders sold into the pool.

Caviar V1's trading and liquidity fees are not stated in the material available here. Anyone interested should check the fee settings shown in the app before swapping or adding liquidity.

Beyond protocol fees, every action on Ethereum mainnet costs gas, which varies with network demand. In a constant-product pool, price impact is also a real cost, and it grows when the pool is small.

Two audits are listed for Caviar V1, but the auditors, dates and findings are not named. An audit lowers the chance of obvious contract bugs but does not remove it. Users keep custody through their own wallets, and smart-contract risk applies to any assets placed in a pool.

Liquidity is small at roughly $61,742 TVL, which raises price-impact risk and means a single large trade or withdrawal can shift pools. The project does not publish a licence or regulatory status. Beware of lookalike sites and unrelated tokens named Caviar on other chains, and only approve token spending you understand.

Caviar V1 suits NFT holders and traders who already use Ethereum wallets and understand how AMM pools price assets. It is a better fit for people exploring pool-based NFT liquidity in small sizes than for anyone needing deep liquidity or tight, predictable pricing.