# Distill - NFT AMM ## LIquidity Providers ### Token-Asset Providers Lps may bring any number of non fungible tokens and any amount of fungible ERC20 assets to the pool. ### Clone Providers An LP may provide a clone only to the pool. This action augments the token reservers as if there is more liquidity in the pool. A clone's worth must meet or exceed the minimum requirements of the pool. ## LP Tokens ### Option A: Multi Tokenization #### ERC4626 Vault Shares An LPs fungible assets provided as liquidity is represented as standard ERC4626 vault shares. #### ERC20 Sortition Tokens Each underlying non-fungible token provided to the pool as liquidity is then abstracted as an ERC20 token to it's provider. When an NFT is sold **BY** the pool a single token is selected at random and burned. When an NFT is sold **TO** the pool a single token is selected at random and it's owner is minted another token. The tokens are redeemable for a randomly selected tokenId from the pool. #### ERC721 Clone Positions When an LP provides a clone to the pool thier position is represented as an ERC721 token tracking their provided cloneId's and the tokens backing those clones. #### Advantages: - Composability with well known and accepted standards. - Liquid and fungible positions. #### Disadvantages: - Complexity when entering and exiting positions. - unforseen consequences with the ability to seperate position equalities? ### Option B: Tokenization as ERC721 An NFT representing the clone position is minted keeping track of the cloneId's and their values. #### Each Position as A Single Token Positions may be represented by an ERC721 token encoding: - The position's share of the assets pool. - The clone Id's and their values deposited into the position. - The position's claims on the NFTs in the pool. The claims accounted for in the ERC721 token would behave in the same way as the sortition tokens described above. #### Advantages: - Simpler interface for entering and exiting positions. - No additional complexities created by ability to split a positions equalities. #### Disadvantages: - Non standard interfaces and interaction with positions. ## Ditto Auctions ### Clone Ejected from Pool ### Underlying NFT Traded for Clone ## Swaps ### NFT for Tokens ### Tokens for NFT