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?

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

1. Create a Buy & Sell NFTs Pool on Collection.xyz

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

🐂 To buy NFTs only (without selling after the purchase)

1. Create a Buy NFTs Pool on Collection.xyz

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

🐻 To sell NFTs only (without buying after the sale)

1. Create a Sell NFTs Pool on Collection.xyz
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