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Providing Liquidity.
How to earn ADA from your CNFTs?
Liquidity:
Any user can add liquidity into a pool by depositing their CNFT + ADA. Once a user has added liquidity they are allowing others to trade with their assets, for this reason you should only deposit floor NFTs, from any collection. When a user withdraws their assets they may be given a different floor NFT than the one they originally deposited.
Users that add liquidity earn a portion of trading fees in ADA from each sell/buy/swap in the pool.
Warning regarding Liquidity Pools:
Please be advised that participating in liquidity pools involves a risk of impermanent loss due to market price deviations. The risk is higher for low liquidity pools and during high market volatility.
Investment in liquidity pools is not protected and you may lose part or all of your investment. Before participating, consider your financial situation and risk tolerance and seek the advice of a licensed financial advisor.
TCC Labs, Extract and TCC do not provide investment advice and do not endorse any specific liquidity pools. It is your responsibility to conduct your own research and make informed decisions.