# How to Provide Liquidity

{% hint style="info" %}
Wondering why should you bother? Read [why-provide-liquidity](https://docs.tensor.trade/provide-liquidity/why-provide-liquidity "mention") first.
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"Providing liquidity" on TensorSwap means creating "maker" orders, which include:

* [Collection-wide bids](#collection-wide-bids)
* [Listings](#listing-orders)
* [Market-making orders](#market-making-orders)

If you're unfamiliar with "maker" / "taker" terminology, [read this](https://www.investopedia.com/articles/active-trading/042414/what-makertaker-fees-mean-you.asp).

## Collection-Wide Bids

<figure><img src="https://3364018093-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTP1CBEbwTzCoyWl9J8MH%2Fuploads%2FxyQBvgZfo0sgaL3GEJNf%2Fbid.png?alt=media&#x26;token=33a3baaa-ac21-4ea4-a4b9-c57e2af3c027" alt=""><figcaption></figcaption></figure>

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.

When placing more than one bid at a time you can make use of TensorSwap's [bonding curve ](https://docs.tensor.trade/provide-liquidity/advanced-concepts/bonding-curves)functionality. This is just a fancy way of saying you can automate your bid prices to adjust downwards with every subsequent purchase.&#x20;

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:&#x20;

1. Head over to <https://www.tensor.trade/>
2. Choose your desired collection
3. On the right hand side choose **BUY** > then **COLLECTION-WIDE BID**
4. Choose the number of NFTs you are willing to buy, starting price, and the decrement, then place the order

{% hint style="info" %}
For a **detailed tutorial** on placing collection-wide bids, see [buy-or-bid](https://docs.tensor.trade/trade/get-started-with-tensors-amm/buy-or-bid "mention").
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## Listing Orders

<figure><img src="https://3364018093-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTP1CBEbwTzCoyWl9J8MH%2Fuploads%2FnvGXpT99fjjeoCkCX3BE%2Fsell.png?alt=media&#x26;token=70302a1c-1109-48bf-bafd-6041f2cd0e4e" alt=""><figcaption></figcaption></figure>

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*.

[Bonding curve](https://docs.tensor.trade/provide-liquidity/advanced-concepts/bonding-curves) simply means that with each sale, your selling price adjusts upwards. This lets you sell at higher prices as your portfolio gets depleted.

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. Head over to <https://www.tensor.trade/>
2. Choose your desired collection
3. On the right hand side choose **SELL** > then **LIST**
4. Choose the number of NFTs you re willing to sell, starting price, and increment, then place the order

{% hint style="info" %}
For a **detailed tutorial** on listing NFTs, see [sell-or-list](https://docs.tensor.trade/trade/get-started-with-tensors-amm/sell-or-list "mention").
{% endhint %}

## Market-Making Orders

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You'll need to be in "Pro" mode (bottom toggle) to market-make.
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<figure><img src="https://3364018093-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FTP1CBEbwTzCoyWl9J8MH%2Fuploads%2F1Y70HdBYtQjHclzOl75K%2Ftrade.png?alt=media&#x26;token=8c229cc0-002f-4bff-aa3c-17758c13f6c7" alt=""><figcaption></figcaption></figure>

[Market-making](https://www.investopedia.com/terms/m/marketmaker.asp) orders are the most complex but also the most interesting out of the three.

In short, it's a **two-sided orde**r in which you're offering to **both buy and sell a certain number of NFTs.**&#x20;

{% hint style="info" %}
Read the above two sections first to understand how **collection-wide bids** and **list orders** work.
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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:&#x20;

1. Head over to <https://www.tensor.trade/>
2. Choose your desired collection
3. On the right-hand side choose **MARKET-MAKE**
4. Choose the number of NFTs you re willing to buy & sell, starting price, and delta, then place the order

{% hint style="info" %}
For a **detailed tutorial** on market-making NFTs, see [market-make](https://docs.tensor.trade/trade/get-started-with-tensors-amm/market-make "mention").

For a rundown of config params & for **3 simple templates** (low risk 🟩, medium risk 🟨, high risk 🟥) check out [setting-up-your-market-making-order](https://docs.tensor.trade/provide-liquidity/setting-up-your-market-making-order "mention")
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