Collection.xyz Documentation
Collection.xyz
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  • Collection Concepts
    • Liquidity Pool
      • Advanced Pool
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    • Bonding Curve and Delta
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    • The Collection Whitepaper
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  • User Guides
    • Create a Trade Pool
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    • 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. Technical Reference
  2. NFT AMM

What Is A CollectionPool?

PreviousNFT AMMNextDifferences Between Individual And Communal Liquidity Pool Model

Last updated 2 years ago

A CollectionPool is a liquidity pool that represents a set of automatic buy and/or sell orders for an NFT denoted in its base currency. A CollectionPool’s owner is an Ethereum address ownerAddress if and only if the ownerAddress is the ownerOf() the LPToken (short for Liquidity Pool Token) tokenId corresponding to the CollectionPool address. Each LPToken is represented by an ERC721 token.

CollectionPools are deployed from a factory contract called CollectionPoolFactory which also the ERC721 contract. In order to check the correspondence of an LPToken tokenId with a pool address, one can use the poolAddressOf() function.

Given that we identify CollectionPool ownership entirely with ownership of the LPToken, ownership of the AMM activity and liquidity can be easily composed with other functions and traded. LPTokens accrue the fees from trading activities for a particular pool, which are separately accounted for.

For v2, we support ERC721 (for NFTs, ERC1155 coming in a future version) and ETH/ERC20 on the other side. For convention’s sake, for a TOKEN-NFT pair, we consider the TOKEN pair the bid side, and the NFT the ask side.

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