NFT Liquidity Mining

At Micro3, NFT liquidity mining is a process in which crypto holders deposit and lock their minted NFTs to get rewards. These rewards commonly stem from NFT trading fees that are accrued from platform participants and rewards provided by our partners. Fees are often at 0.3% per transaction and the total reward differs based on one’s proportional share in a liquidity pool.

For example, crypto holders must provide equal portions of NFTs in terms of value to the staking pool. If we have NFTs worth of 4 ETH (assumed each is priced $2,500) we have a total of $10,000. Therefore, lending these NFTs means that we also have to provide 10,000 USDT (valued at $1 per token or any tokens with the same value).

Again, the liquidity provided will be granted to clients who trade NFTs from that NFT collection. These fees and other rewards are then collected and distributed to liquidity providers (LPs).