Pool Manager NFT

When a liquidity pool is created, the creator is awarded a Pool Manager NFT. The NFT-holder has the exclusive right to manage certificates related to the pool's stake address.

The NFT-holder can perform any certificate action, such as

  • Delegate to a stake pool

  • Register a stake pool

  • Deregister stake pool

As a protocol participant, the NFT-owner should manage the deposited ADA to generate maximum returns for depositors.

When the pool is managed properly:

  • It generates high yields

  • Deposits flow into the pool

  • Full management of liquidity pool stake credentials for pool manager NFT

When the pool is not managed properly:

  • Deposits flow out to high-yield pools

  • Deposits flow out from the pool

  • The pool manager does not control a significant amount of ADA

Lastly, the liquidity pool can be destroyed only if Pool Manager NFT is burned.

Reminder If you've created a liquidity pool, please refrain from withdrawing 100% of your liquidity if you do not intend to delete the pool. Removing all liquidity without deleting the pool risks forfeiting the Pool Deployment Fee (~35 ADA).

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