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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?

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🦀 To earn yield on your NFTs via bid/ask spreads & trading fees

  1. Create a Buy & Sell NFTs Pool on Collection.xyzarrow-up-right

  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

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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

chevron-right🐂 To buy NFTs only (without selling after the purchase)hashtag

  1. Create a Buy NFTs Pool on Collection.xyzarrow-up-right

  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

chevron-right🐻 To sell NFTs only (without buying after the sale)hashtag

  1. Create a Sell NFTs Pool on Collection.xyzarrow-up-right

  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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