How to Create a New Pool
Last updated
Last updated
The process of creating a new pool is very similar to adding liquidity to an existing pool (Link: Add Liquidity Guide with Screenshot). The key difference is that when you create a new pool, you are providing liquidity for a pool that has never existed before.
In this guide we use an example of creating a new pool in concentrated liquidity pools(V3).
Select "Liquidity" in navigation menu and select "Concentrated" liquidity pools.
When creating a new pool, please specify the token pair you would like to set up.
Select a fee tier for the pool you are going to create. There are 3 tiers that are supported now, which are 0.05%, 0.3% and 1% respectively. For most non-stable trading pairs, 0.3% is always the most adopted fee tier. For a relatively rare asset that is rarely traded, 1% can be selected to give enough motivation to LPs. 0.01% and 0.05% are usually used for stable trading pairs. Please select a suitable fee tier for your pool if you want the pool you created to be utilized by more transactions.
Set an initial price for the pool. Please specify a reasonable starting price, otherwise you may need to bear excessive impermanent loss. Besides, you need to set a price range which you want to allocate your initial liquidity into. The initial price must be within the range you selected.
Narrow Range: Higher rewards if the price stays within this range, but fewer active liquidity opportunities outside the range.
Wide Range: Provides stability, but may earn fewer rewards as liquidity is spread over a broader price range.
Enter the amount of tokens on any side of the target liquidity pool. After setting all basic parameters, you need to enter the liquidity amount you want to provide to the pool as initial liquidity. Just input the amount for one of the tokens, the amount for the other one will be automatically calculated according to the starting price and the price range you select.
You’ve entered all needed parameters, you can submit to create the pool and approve your wallet to add initial liquidity. You’ll get your position NFT after your liquidity is successfully added.
