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LP Strategy Guide
To begin thinking about your liquidity provision strategy, select a NFT collection and answer this question:
Do I want to buy / sell / earn yield?
- 1.
- 2.Select the NFTs attributes you want to sell (e.g. Golden Azukis)
- 3.Customise your pool strategy & parameters
- 1.Set Start Price as the price
- 2.Set Delta to 5% (i.e. with every trade that your pool executes, it’ll buy/sell the next NFT at a 5% cheaper/higher price)
- 3.Set Trading Fee to 1% (i.e. with every trade that your pool executes, you will receive 1% of the NFT price)
- 4.Set Royalties to your desired amount
- 4.Deposit NFTs & ETH that you are LP-ing
- 1.Have a buy bias? Deposit more ETH
- 2.Have a sell bias? Deposit more NFTs
- 3.Don’t have a buy/sell bias? Deposit equal amounts of ETH & NFTs
- 5.Approve & Create Pool
If you have many NFTs in 1 collection with different rarity / price premiums, you are recommended to create multiple pools for each rarity/price tier, so that you extract the most value out of your strategies
- 1.
- 2.Select the NFTs attributes you want to buy (e.g. Golden Azukis)
- 3.Customise your pool strategy & parameters
- Set Start Price to how much you want to buy the NFT for
- Set Delta to 5% (i.e. with every buy that your pool executes, it’ll buy the next NFT at a 5% cheaper price)
- Set Trading Fee to 1% (i.e. with every buy that your pool executes, you will receive 1% of the NFT price)
- Set Royalties to your desired amount
- 4.Deposit ETH that you want to buy NFTs with
- 5.Approve & Create Pool
- 1.
- 2.Select the NFTs attributes you want to sell (e.g. Golden Azukis)
- 3.Customise your pool strategy & parameters
- 1.Set Start Price to how much you want to sell the NFT for
- 2.Set Delta to 5% (i.e. with every buy that your pool executes, it’ll sell the next NFT at a 5% higher price)
- 3.Set Trading Fee to 1% (i.e. with every buy that your pool executes, you will receive 1% of the NFT price)
- 4.Set Royalties to your desired amount
- 4.Deposit NFTs you want to sell
- 5.Approve & Create Pool
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Last modified 7mo ago