Tensor
  • 👋Welcome
    • ⚡About
    • 🔗Links
    • 🛣️Roadmap
    • ⭐Rewards
      • 4️⃣Season 4!
      • 🤝Referrals!
      • 3️⃣Season 3!
      • 👾End of Season 2 + Tensorians are coming!
      • 2️⃣Season 2!
  • 👾Tensorians
    • 🖖Tensorians Manifesto
  • 📈TRADE
    • 🪙Fees & Royalties
    • 💻API & SDK
    • ❌Troubleshooting
      • 🙋Share an Error
      • 😭Doesn't load - what do?
      • 🔍Verify an NFT Mint
      • 🤔Weird Phantom Transactions
      • 💎Rarity
    • 🔀Get Started with Tensor's AMM
      • 🎁Buy or Bid
      • 🤑Sell or List
      • 🔁Market-Make
      • ⛔Closing an Order
      • 🛑Purchase Caps
      • 📺Video Tutorials
    • 🎲YOLO Buy
    • ↔️Shared Escrow
  • PROVIDE LIQUIDITY
    • 🤔Why Provide Liquidity?
    • 🌊How to Provide Liquidity
    • ✏️Market-Making Example
    • 🤑What APY can you expect?
    • 🛑What are the Risks?
    • ⚙️Setting up your Market-Making Order
    • 🔬Advanced Concepts
      • 📈Bonding Curves
      • ⚠️Impermanent Loss
  • 🤝Work with us
    • 🧑‍🎨Creator Portal
      • 📒Claiming or Updating an Existing Collection
      • 📖Verifying a new NFT Collection
      • 📚How to get a Creator Page?
    • 🎨Creator Partnerships
    • 🤙Contact us
Powered by GitBook
On this page
  • Collection-Wide Bids
  • Listing Orders
  • Market-Making Orders
  1. PROVIDE LIQUIDITY

How to Provide Liquidity

Earn trading fees & LP rewards by providing liquidity and creating markets for your favorite NFT collections on TensorSwap.

PreviousWhy Provide Liquidity?NextMarket-Making Example

Last updated 3 months ago

Wondering why should you bother? Read Why Provide Liquidity? first.

"Providing liquidity" on TensorSwap means creating "maker" orders, which include:

If you're unfamiliar with "maker" / "taker" terminology, .

Collection-Wide Bids

Collection-wide bids let you put in an offer for the entire collection. For example, you might offer to buy "any SMB" for 100 SOL. Anyone with a SMB can then take that offer.

If you choose an "exponential" bonding curve (%) with a starting price of 1 SOL and an increment of 10%, each consecutive purchase will be 10% lower. So for 5 NFTs, it would be: 1 SOL > 0.9 > 0.81 > 0.74 > 0.67.

To set up a collection-wide bid:

  1. Choose your desired collection

  2. On the right hand side choose BUY > then COLLECTION-WIDE BID

  3. Choose the number of NFTs you are willing to buy, starting price, and the decrement, then place the order

For a detailed tutorial on placing collection-wide bids, see Buy or Bid.

Listing Orders

List orders let you list a bunch of NFTs at the same time, exactly like listings you'd put up on OpenSea or MagicEden, with one big difference - you can configure a bonding curve.

If you choose a "linear" bonding curve (◎) with a starting price of 1 SOL and increment of 0.1 SOL, each consecutive sale will be 0.1 higher. So for 5 NFTs, it would be: 1 SOL > 1.1 > 1.2 > 1.3 > 1.4.

To set up a list order:

  1. Choose your desired collection

  2. On the right hand side choose SELL > then LIST

  3. Choose the number of NFTs you re willing to sell, starting price, and increment, then place the order

For a detailed tutorial on listing NFTs, see Sell or List.

Market-Making Orders

You'll need to be in "Pro" mode (bottom toggle) to market-make.

In short, it's a two-sided order in which you're offering to both buy and sell a certain number of NFTs.

Read the above two sections first to understand how collection-wide bids and list orders work.

An MM order is just a collection-wide bid + a list order placed together, with a few key differences:

  1. When placing a MM order, your starting BUY price will be 1 notch lower than your starting SELL price. So, for example, if you're setting up a MM order on a linear curve with 0.1 SOL delta and 1 SOL starting price, your first BUY price will be 0.9 (0.1 lower than 1 SOL).

  2. Placing an MM order lets you set up custom fees (up to 25%). These are charged on top of Tensor's 1% taker fees and are completely up to you. We recommend setting up something reasonable, so you attract buyers.

  3. When a MM order SELLs to the taker (buyer), royalties are voided. This is done to incentivize market-making orders which create volume and liquidity for the collection. When a MM order BUYs from the taker (seller), royalties are upheld and paid by the taker.

To set up a market-making order:

  1. Choose your desired collection

  2. On the right-hand side choose MARKET-MAKE

  3. Choose the number of NFTs you re willing to buy & sell, starting price, and delta, then place the order

For a detailed tutorial on market-making NFTs, see Market-Make.

For a rundown of config params & for 3 simple templates (low risk 🟩, medium risk 🟨, high risk 🟥) check out Setting up your Market-Making Order

When placing more than one bid at a time you can make use of TensorSwap's functionality. This is just a fancy way of saying you can automate your bid prices to adjust downwards with every subsequent purchase.

Head over to

simply means that with each sale, your selling price adjusts upwards. This lets you sell at higher prices as your portfolio gets depleted.

Head over to

orders are the most complex but also the most interesting out of the three.

Head over to

🌊
bonding curve
https://www.tensor.trade/
Bonding curve
https://www.tensor.trade/
Market-making
https://www.tensor.trade/
read this
Collection-wide bids
Listings
Market-making orders