# NFT Rewards

<figure><img src="https://3226448103-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F40Q4o1eTUbfBk5TFnZ8r%2Fuploads%2FgmVRsHBmMpiH5hX0gHvO%2Fspaces_O9rL5Pn6FMh0a22yX5Eo_uploads_Hlz6MhrBnqPHWrerFcRp_NFTRewards.webp?alt=media&#x26;token=d123a4a7-270e-4d4f-b02e-b8e795e16fb3" alt=""><figcaption><p>Text and figures are placeholders</p></figcaption></figure>

[NFT Rewards](https://swap.tacocrypto.io/nft) are rewards added to Liquidity Pools. Users can provide liquidity and get the chance of winning NFTs every day.

Winners are selected based on their total share of the liquidity pool, based on this scheme:&#x20;

{% hint style="success" %}
*Pool Share \* 10,000 = Number of Entries*

The entries count only for the liquidity pool in which the user has provided liquidity
{% endhint %}

{% hint style="info" %}
By clicking on Details, users have the chance to see all the NFTs provided
{% endhint %}

{% hint style="success" %}
A Liquidity Pool can have both M.E.A.L. and NFT Rewards.
{% endhint %}

<figure><img src="https://3226448103-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F40Q4o1eTUbfBk5TFnZ8r%2Fuploads%2FNgS1ZJRvhALnJzFVTgXU%2Fspaces_O9rL5Pn6FMh0a22yX5Eo_uploads_S8SsiEiIrKa2OB2iJLzy_Meal%20-%20NFT%20reward.webp?alt=media&#x26;token=7e60b156-c14d-4f44-86ec-5f36c6b3e583" alt=""><figcaption><p>MEAL page. When a MEAL has also NFT Rewards you will see <span data-gb-custom-inline data-tag="emoji" data-code="1f381">🎁</span> icon in the Daily Rewards section. Text and figures are placeholders.</p></figcaption></figure>

## Providing Liquidity

Users can provide liquidity to have chances of winning NFT rewards based on their pool share: this action can be done both in the Liquidity or the NFTs sections of the Taco Swap.

It's worth noting that by providing the token pair, users contribute to the total liquidity of the specific pool.

Users are able to withdraw their tokens anytime, with no added fees.

{% hint style="warning" %}
Providing liquidity has risks to be aware of. The main risk of using Liquidity Pools is Impermanent Loss.

[Get to know more about Impermanent Loss here.](https://academy.binance.com/en/articles/impermanent-loss-explained?ref=JLI1VBLA\&utm_source=BinanceTwitter\&utm_medium=GlobalSocial\&utm_campaign=GlobalSocial)
{% endhint %}

## How to Set Up NFT Rewards

This feature is only for projects, get to know more on the [Projects Account section](https://whitepaper.tacostudios.io/defi/taco-swap/broken-reference)

* Go to the projects dashboard <https://swap.tacocrypto.io/settings/nft-rewards>
* Login with the account which own the token(s)
* Once logged in, you will be able to see the Liquidity Pools linked to your token/s. If you don't see them there are two possibilities: 1) There are no existing Liquidity Pools with your tokens and you have to create one here <https://swap.tacocrypto.io/liquidity> 2) The account is not linked to the token/s
* Choose one of the existing Liquidity Pools and click on Manage Rewards
* Click on +Add Rewards and transfer the *total* amount of NFTs you want to give as reward to swap.taco with the required Memo
* Click on Manage, insert the *daily* amount of NFTs you want to give as reward and Save. **Now the NFT rewards are live and visible.** In this panel you will also be able to deposit more NFTs.
* Click on Manage to edit rewards anytime

{% hint style="info" %}
Up to two different NFT rewards supplies can be created for the same Liquidity Pool, one for each of the liquidity pool tokens. Only the owner of the token smart contract can manage the supply.

Example: WOMBAT/TLM pool NFT Rewards

NFT Supply 1 can be managed by wombattokens contract owner

NFT Supply 2 can be managed by alien.worlds contract owner

A third supply can be created by Taco team during special events.
{% endhint %}

<figure><img src="https://3226448103-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2F40Q4o1eTUbfBk5TFnZ8r%2Fuploads%2FPZeyujCNuI8XMDjPb4TC%2Fspaces_O9rL5Pn6FMh0a22yX5Eo_uploads_oYFwAmR1VCUSBdHnk3oB_NFT%20Rewards%20-%20rewards%20view%20nfts.webp?alt=media&#x26;token=1e0fe477-24bd-4ebc-8837-7ffc8803c769" alt=""><figcaption><p>Text and figures are placeholders</p></figcaption></figure>

## Advertising for Web3 Projects

NFT Rewards are a fantastic opportunity to advertise your Web3 projects.

By distributing NFT Rewards, projects allow more and more users to provide liquidity for their tokens and get to know their ecosystem.

NFT Rewards are also a great way to stabilize tokens in addition to rewarding users.