🔥Create a Swap Pool
Before creating your own pool, check if a pool of your desired NFT collection already exists. Depositing your own liquidity into an existing pool is highly desirable as it concentrates more liquidity and allows you to own more LP rewards.
How to create a liquidity pool?
1. Enter the "Pool Creation Page" by clicking Create Pool in the menu bar. Set the following parameters.
Token: Select your preferred ERC20 to deposit. (Currently, we only support ETH).
NFTs: Select your preferred NFT Collection to deposit.
Start Price: This price determines the floor price of your pool.
Swap Fee: The Swap Fee determines how much the LP earns from each transaction with the pool. (Currently, we only allow a swap fee of 1%).
Curve: The price curve determines how the floor price of the NFTs behave for each transaction with the pool. (Currently, we only allow the CPMM curve).The CPMM curve follows the
The CPMM (Constant Product Market Maker) Curve is based on the function x*y=k, which establishes a range of prices for two tokens according to the available quantities (liquidity) of each asset.
This means the price of each NFT increases as they are being bought since the NFT amount in the pool decreases and gets more rare relative to the ERC20 token in the pool. Oppositely, if NFTs are being sold to the pool, the NFT price decreases as the ERC20 amount becomes less is more rare relative to the NFT amount.
2. Choose the NFT assets to deposit into the pool.
As we select the NFT Collection, the NFTs we own of that collection are shown. Now you can easily select the ones you'd like to deposit into the pool. Next, press "Create" (this will not yet trigger the transaction).
3. Approve the collection.
Review your NFT selection, and the token amount you have to deposit into the pool. Click approve and allow the SeaCows protocol to transfer the selected NFTs into the pool.
Create the pool
Once you approved the transaction you are now able to deposit both your NFTs and ERC20 tokens into the pool. Keep in mind that the ERC20 amount is determined by your starting price and the amount of NFTs you selected.
If you selected a starting price of 0.1 ETH and chose 10 NFTs, you will have to deposit 1 ETH into the pool.
Great Success!
Check out your newly created pool by pressing "View Collection".
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