# Multi-Asset Liquidity Pools

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. 

## What is a 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.<br>

<figure><img src="https://1513526320-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbvmBYEEAeyy4TR2hJPTb%2Fuploads%2FIEsLUFQvGwLILOn5k8vM%2Fimage.png?alt=media&#x26;token=95e4f567-d9ff-4c80-a770-28c24a328a8e" alt=""><figcaption></figcaption></figure>

## How does the protocol work?

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Let's use one of our existing multi-asset liquidity pools as an example.

&#x20;We have a multi-asset liquidity pool with the following NFT collections paired with $CSWAP token:

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Toolheads - Target : 36%\
Tappy - Target: 28%\
Clay Nation - Target: 20%\
SpaceBudz - Target: 10%\
The Ape Society - Target: 5%

<figure><img src="https://1513526320-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FbvmBYEEAeyy4TR2hJPTb%2Fuploads%2FV4E5JHCzKQ8epSaxCpbL%2Fimage.png?alt=media&#x26;token=302ea2f5-e0ea-4b6c-8ed9-e2a01c1b5839" alt=""><figcaption></figcaption></figure>

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).

## Creating new financial opportunities

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.<br>