Two-sided Liquidity Pools Explained
JewelSwap allows market makers to provide liquidity on both sides to the AMM. Market makers have the ability to set up predetermined fees on the spread for every trade executed in the pool.
For eg, A market maker can set up a two-sided liquidity pool with 10 buy orders and 10 NFT, with a delta exponential of 5%.
A higher delta will result in higher volume, while a lower delta will result in lower volume.
For every NFT bought, the number of NFTs in your pool will increase by the corresponding amount. And the price of the next buy order/NFT will be adjusted downwards by the delta value of 5%.
For every NFT sold, the number of NFTs in your pool will decrease by the corresponding amount. And the price of the next buy order/NFT will be adjusted upwards by the delta value of 5%.
In the extreme case, you will end up being EGLD rich or NFT rich.