NFT Liquidity Pools (AMM)

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AMM-driven NFT Liquidity Pools create the ability for individuals with NFTs and SOL to create a decentralized focused marketplace for any individual wishing to purchase, sell or even swap their NFT for another version in the same collection. These pools allow these actions to happen instantly - avoiding the traditional centralized method of waiting for a counterparty to come along on the secondary market. By creating and investing in these pools, Liquid Capital earns fees denominated in SOL on every interaction with the pool (for acting as the market maker for this particular NFT – SOL pairing). Liquidity pools are the largest source of fee-generation activities for Liquid Capital.

Liquid Capital currently manages between 15-20 liquidity pools on Hadeswap that are actively monitored and adjusted on an as-needed basis depending on the individual metrics for each pool. The pools are assessed on average between 5-10 times a day taking the overall market conditions with respect to Solana price movements, NFT activity and general market sentiment into consideration. When establishing any liquidity pool the metrics used to select projects include: having a solid reputation, med/high trading volume and are projected to remain somewhat stable in relation to the overall market. Any pool that becomes too one-sided will be adjusted through the trading delta, spot price, and trading fee to help rebalance the pool and restore optimal liquidity positioning.

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