Collection.xyz Documentation
Collection.xyz
  • What is Collection.xyz?
  • Collection Concepts
    • Liquidity Pool
      • Advanced Pool
      • Basic Pool
    • Bonding Curve and Delta
    • Fee
    • Buy / Sell
    • APR
    • The Collection Whitepaper
    • Collection 1.00: Patch Notes
  • User Guides
    • Create a Trade Pool
    • Create a Buy Pool
    • Create a Sell Pool
    • Buy & Sell NFTs instantly
    • LP Strategy Guide
  • Technical Reference
    • NFT AMM
      • What Is A CollectionPool?
      • Differences Between Individual And Communal Liquidity Pool Model
      • How do I determine if a pool has sufficient liquidity to fulfil an order?
    • Fee Structure
      • Overview of the Fee Structure in NFT AMMs
      • Calculation and Collection of Fees
    • Royalties
      • How are royalties implemented?
      • Relation between Royalties and Fees in the AMMs
      • All Possible Royalty Scenarios
    • Airdrop Compatibility
      • Can Collection.xyz handle airdrops?
    • Pool Types
      • Definition of Pool Types In NFT AMMs
      • Comparison of Different Pool Types
    • Bonding Curves
      • Parameters of the bonding curves
      • Type of bonding curves
        • Linear Curve
        • Exponential Curve
        • Sigmoid Curve
      • How are the parameters used in each of the bonding curves?
      • Customizable spread curves
    • Github Repos & Addresses
    • Audit Reports
    • Technical User Flows
      • Technical Architecture
      • Create Pool
      • Swapping and Trading: User Buying NFT
      • Swapping and Trading: User Selling NFT
      • Bonding Curves and Pricing
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  1. Collection Concepts

Fee

Collection adopts a carry fee model by design for TRADE pools, where the protocol takes a percentage of the trading fee. Unlike a flat fee model, carry fee model presents a fairer and more sustainable distribution across the traders, liquidity provider and the protocol.

However, as a carry fee model assumes an ongoing concern (a valid assumption for TRADE pools which will continue to trade within a band), it may not be as valid for LIMIT-type pools which can only trade a limited number of times (TOKEN or NFT pools). For those types of pools, for simplicity of understanding, we maintain a flat fee.

The protocol fee for both types of pools will be 0% at launch, and governance 👀 can decide the percentage in the future.

Royalty

Collection seeks to provide a platform that helps to balance royalty asks from traders and creators. It is therefore recommended by default when liquidity provider is creating the pool.

While creating an incentive program for the vault, NFT Project Owners / vault creators have the option only to incentivize pools that honor royalties.

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Last updated 2 years ago