NFT Liquidity Pools
Liquidity enhances cash flow to owners of an asset and increases buying, selling and yield / ROI
Users of the Matry protocol may support the platform (and be rewarded with Liquidity Provider Tokens - such as MATRY and a split of trading fees ) by adding or providing Liquidity in the form of a concentrated pool of tokens / funds, known as Liquidity Pools.
The definition of a Liquidity Pool, is as per the below explanation from Binance (the leading global Centralized Cryptocurrency Exchange): A liquidity pool is a collection of funds locked in a smart contract. Liquidity pools are used to facilitate decentralized trading, lending, and many more functions. Liquidity pools are the backbone of many decentralized exchanges (DEX), such as Uniswap. Users called liquidity providers (LP) add an equal value of two tokens in a pool to create a market. In exchange for providing their funds, they earn trading fees from the trades that happen in their pool, proportional to their share of the total liquidity.
As anyone can be a liquidity provider, AMMs have made market making more accessible. One of the first protocols to use liquidity pools was Bancor, but the concept gained more attention with the popularization of Uniswap. Some other popular exchanges that use liquidity pools on Ethereum are SushiSwap, Curve, and Balancer. Liquidity pools in these venues contain ERC-20 tokens. Similar equivalents on Binance Smart Chain (BSC) are PancakeSwap, BakerySwap, and BurgerSwap, where the pools contain BEP-20 tokens.
With Matry, there are 2 types of Liquidity Pools available:
1) NFT Staking Liquidity Pools
2) Trading Liquidity Pools