Liquidity Provision on Wasabi

Wasabi is now live on Ethereum Mainnet as of April 20, 2023! LPs who deposit NFTs and / or ETH into the Wasabi Protocol early will unlock exclusive benefits and receive early bird rewards.

How to Provide Liquidity: A Step-by-Step Guide

  1. Visit the Wasabi Protocol website at

  2. Connect your wallet: To interact with Wasabi Protocol, you'll need a compatible Ethereum wallet (such as MetaMask) with sufficient funds for your desired liquidity provision.

  3. Select the "Sell Options" button.

  4. Choose your asset pair: Wasabi Protocol allows LPs to provide liquidity for various NFT options markets. Select the desired NFT collection and / or ETH for which you want to supply liquidity. LPs can deposit NFTs, ETH or both.

  5. Choose your price oracle: Define the price range for the options contracts within which you're comfortable providing liquidity. This range will determine the amount of exposure you have to price fluctuations.

  6. Deposit assets: Deposit the required amount of assets for your chosen pair and price range.

  7. Confirm the transaction: Review the details of your liquidity provision and confirm the transaction. Your wallet will prompt you to approve and sign the transaction.

  8. Monitor your position: Track your liquidity provision's performance, accrued fees, and any incentives on the Wasabi Protocol dashboard.

Season I LP Rewards Program

Wasabi Protocol’s mainnet launch will be accompanied by an incentive program geared toward liquidity providers who deposit assets on the platform early. Rewards will be calculated as such:

  • 10x Points on daily TVL (Total Value Locked in ETH, including locked NFT value)

  • 100x Points on ETH earned by issuing options * (30 - days out of expiry)

  • 150x Points on ETH earned from accepting an offer

What are the Risks?

As with any financial market, providing liquidity on Wasabi Protocol carries inherent risks:

Impermanent loss: Due to the nature of liquidity pools, LPs may experience impermanent loss if the price of the assets in the pool diverges significantly from the initial deposit price. In Wasabi’s case, the impermanent loss represented is in the form of ETH or NFTs traded in the pool.

Smart contract risk: While Wasabi Protocol has been thoroughly tested and audited by audit firms Zellic and Narya, unforeseen vulnerabilities in the smart contracts could lead to potential losses.

Regulatory risk: The regulatory environment surrounding NFTs and DeFi is still evolving. Changes in regulations may impact the protocol's operations and liquidity provisions. To this end, Wasabi Protocol is currently restricted to users in the United States and United Kingdom.

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