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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?

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

  1. 1.
    Create a Buy & Sell NFTs Pool on Collection.xyz​
  2. 2.
    Select the NFTs attributes you want to sell (e.g. Golden Azukis)
  3. 3.
    Customise your pool strategy & parameters
    1. 1.
      Set Start Price as the price
    2. 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. 3.
      Set Trading Fee to 1% (i.e. with every trade that your pool executes, you will receive 1% of the NFT price)
    4. 4.
      Set Royalties to your desired amount
  4. 4.
    Deposit NFTs & ETH that you are LP-ing
    1. 1.
      Have a buy bias? Deposit more ETH
    2. 2.
      Have a sell bias? Deposit more NFTs
    3. 3.
      Don’t have a buy/sell bias? Deposit equal amounts of ETH & NFTs
  5. 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. 1.
    Create a Buy NFTs Pool on Collection.xyz​
  2. 2.
    Select the NFTs attributes you want to buy (e.g. Golden Azukis)
  3. 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. 4.
    Deposit ETH that you want to buy NFTs with
  5. 5.
    Approve & Create Pool
🐻 To sell NFTs only (without buying after the sale)
  1. 1.
    Create a Sell NFTs Pool on Collection.xyz​
  2. 2.
    Select the NFTs attributes you want to sell (e.g. Golden Azukis)
  3. 3.
    Customise your pool strategy & parameters
    1. 1.
      Set Start Price to how much you want to sell the NFT for
    2. 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. 3.
      Set Trading Fee to 1% (i.e. with every buy that your pool executes, you will receive 1% of the NFT price)
    4. 4.
      Set Royalties to your desired amount
  4. 4.
    Deposit NFTs you want to sell
  5. 5.
    Approve & Create Pool
  • ​
User Guides - Previous
Buy & Sell NFTs instantly
Next - Technical Reference
NFT AMM
Last modified 1mo ago