Multi-Asset Liquidity Pools
An evolution of NFT liquidity pools
Last updated
An evolution of NFT liquidity pools
Last updated
We are pushing the boundaries of NFTfi technology and have invented a novel concept never before seen in all of crypto - the multi-asset liquidity pool.
A multi-asset liquidity pool consists of multiple NFT collections (which have distinct values themselves) paired with a given token. Based on the estimated market value of each of the underlying collections, the pool has a certain target ratio for each of the NFT collections.
Let's use one of our existing multi-asset liquidity pools as an example.
We have a multi-asset liquidity pool with the following NFT collections paired with $CSWAP token:
Toolheads - Target : 36% Tappy - Target: 28% Clay Nation - Target: 20% SpaceBudz - Target: 10% The Ape Society - Target: 5%
Unlike a conventional NFT liquidity pool, where a user gets to choose what they get, the user uses a certain amount of $CSWAP to play the pool ("roll the dice") and win a random NFT out of the pool. This gives $CSWAP a strong initial utility as it can literally be used to win NFTs out of the multi-asset liquidity pools, which themselves have ADA value associated with them.
Similarly, users can use these liquidity pools to play the sell side of the game - 'dump' their NFTs for $CSWAP, which is roughly related to the market value of those NFTs. $CSWAP can be either used to play other pools, or used in other parts of the CSWAP ecosystem (Our goal is to allow users to stake $CSWAP for platform fee sharing on CSWAP's upcoming fungible DEX).
Whenever there's a gap in price between multiple platforms, and there is natural price volatility, this inherently creates trading and arbitrage opportunities for users where they can actually make effectively risk-free trades between the platforms.
Multi-asset liquidity pools offer a new venue for people to find new ways to extract value.
For example, trading and arbitrage opportunities can be created when:
The price of an NFT goes up on one marketplace while being stagnant on another
The value of $CSWAP in the pool changes
People buy/sell in/out of the CNFT's regular NFT pools or multi-asset liquidity pools
If someone wins an NFT out of the pool, and the pool happens to be short on that asset, it will offer more CSWAP for that particular collection as it has a higher desirability factor.
