# 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?**

#### 🦀 T**o earn yield on your NFTs via bid/ask spreads & trading fees** 

1. Create a **Buy & Sell NFTs** Pool on [Collection.xyz](http://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

{% hint style="info" %}
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
{% endhint %}

<details>

<summary>🐂 <strong>To buy NFTs</strong> only (without selling after the purchase)</summary>

1. Create a **Buy NFTs** Pool on [Collection.xyz](http://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

</details>

<details>

<summary>🐻 <strong>To sell NFTs</strong> only (without buying after the sale)</summary>

1. Create a **Sell NFTs** Pool on [Collection.xyz](http://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&#x20;
5. Approve & Create Pool

</details>

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