Here's a guide to understanding Magic Eden’s AMM Pools:

Before we dive into the details of Magic Eden’s AMM Pools, let's go over a few key definitions:

Handling a single item sell-order or buy-order is a manageable task for users, but managing multi-item sell or buy orders (LPs) can quickly become overwhelming. Magic Eden’s AMM makes it easy to manage sell-side, buy-side, and double-sided LPs, regardless of the LP size.

To access Magic Eden's AMM Pools, click on your shopping cart and select the 'Advanced Orders' toggle. You will see the Market-Making option appear. You can select 'Buy Only', 'Sell Only' or 'Double Sided'.

A buy-side LP is similar to multiple collection offers with different prices. Instead of inputting the prices one by one, you only need to describe your entire buy-side LP in the following terms:

For example, a buy-side LP with exponential pricing curve type, 10.5 SOL highest buy price on the curve, 5 single buy orders on the curve, 5% incremental delta amount on the curve, and royalty-payment enabled means that the LP creator has to pay the sum of the net prices to be locked in the buy-side LP. Our marketplace calculates an adjusted price to show to potential sellers, which is lower than the net price, to budget the payment of royalty amounts and other marketplace fees.

In this example, it shows the Market-Making feature on Magic Eden which is specific to the 'Buy Only' or Buy Side LP flow.

This feature allows you to:

When you select these features, a line or curve will be displayed showing the prices at which you will purchase the NFTs. The user, in this case has set a 'Start Price' of 0.03 and a 'Change By' value of 0.001 SOL. Hovering over the chart will display the individual prices of buy orders.

A sell-side LP is similar to multiple listings with different prices. Instead of inputting the prices one by one, you only need to describe your entire sell-side LP in the following terms:

For example, a sell-side LP with exponential pricing curve type, 11.025 SOL lowest sell price on the curve, 4 NFTs to put in the sell-side LP, 5% incremental delta amount on the curve, and royalty payment required on each sale means that the LP creator has to pick 4 NFTs to put in the sell-side LP. Our marketplace calculates an adjusted price to show to potential buyers, which is higher than the net price, to budget the marketplace fees.

In this example, it shows the Market-Making feature on Magic Eden which is specific to the 'Sell Only' or Sell Side LP flow.

This feature allows you to:

When you select these features, a line or curve will be displayed showing the prices at which you will sell the NFTs. The user, in this case has set a 'Start Price' of 0.04 and a 'Change By' value of 1%. Hovering over the chart will display the individual prices of sell orders.

A double-sided LP is a buy-side LP followed by a sell-side LP. It's similar to a traditional market maker, allowing users to trade both sides of the market. The LP creator of a double-sided LP can define an LP-Fee to collect fees as a percentage of every buy or sell transaction with the LP. This means that LP owners will be able to collect fees on every transaction with the LP.

This example, shows the 'Double-Sided' pool which is the complete market making flow on Magic Eden.

This feature allows you to:

When you select these features, a line or curve will be displayed showing the prices at which you will buy and sell the NFTs. Buy orders are displayed by a grey line and sell orders will be in green. The gap between the two lines will vary depending on the 'LP Fee' set for the pool.

All advanced orders are completed by selecting the 'Place Order' button.

Magic Eden AMM Pools provide a simple and efficient way to manage sell-side, buy-side, and double-sided LPs on Magic Eden. With proper tooling, users can easily create, update, and cancel their orders, no matter how large their LP is. For more information, please check out our FAQs or reach out to our support team.