Trading LP Parameters

When providing liquidity to trading pools, there are multiple parameters that need to be set:

Type (soon to be available):

TypeHolds

Trade

NFTs & Tokens

Can buy and sell and price can increase and decrease

TradeUp

NFTs & Tokens

Can buy and sell and price can only increase

TradeDown

NFTs & Tokens

Can buy and sell and price can only decrease

Buy

Only Tokens

Can only buy (price will only decrease)

Sell

Only NFTs

Can only sell (price will only increase)

Price Curve - Controls how the LP's price changes after each trade. There are two options: linear and exponential.

Exponential:

nextPrice=priceāˆ—(1+Ī“)nextPrice = price * (1 + \delta)

Linear:

nextPrice=price+Ī“nextPrice = price + \delta

Delta - The parameter that controls the behaviour of the price curve. It is represented as a percentage for the exponential curve and a value in ETH for the linear curve. (e.g. 20% for the exponential curve and 0.1 ETH for the linear curve).

Initial Price - The initial price at which the LP will provide liquidity. It is advisable to keep this value close to the market price of the underlying NFTs in order to optimize the utilization of the liquidity.

ETH Amount - The amount of ETH that will be supplied to the LP.

Fee - The percentage fee that the LP will take on each trade it participates in. (e.g. 0.5%).

NFTs - The NFTs that will be supplied to the LP.

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