Creating a liquidity pool
Anybody can create a liquidity pool. The only requirement is that the asset pair does not already exist.
Liquidity pool creators are also liquidity providers since they deposit the initial liquidity and are given LP tokens in return. For security reasons, a very small portion of the initial liquidity is locked in the liquidity pool forever. The liquidity provider needs to make sure that the ratio in which the initial liquidity was provided reflects the real-world exchange rate, otherwise, it would be open to arbitrage and they could lose out on the overall value.
One thing to keep in mind is that the liquidity pool creator needs to provide a small amount of non-refundable ADA bundled with the tokens as per requirements of the Cardano blockchain.
The creation of a liquidity pool can be seen in the following image:
User creates a new liquidity pool and receives LP tokens
You can create a liquidity pool in the Pool tab by clicking Create pool. This will take you to the Create a new pool page.
Here you have to select a pair of assets that do not have an existing liquidity pool yet.
Once you are ready, click Create a new Pool. WingRiders will let you once more review the transaction details. If you are satisfied with the transaction, confirm it using the Confirm button. Afterwards, you will be prompted by your connected wallet to sign the transaction (example from Nami Wallet, interface may differ in other wallets).
After successfully signing the transaction, WingRiders will inform you about a successful pool submission. You can track progress of the pool creation in the Transactions tab, either by clicking Transaction list in the message window or you can click Transactions in the top right corner. After the transaction was confirmed, you will see your transaction in the Completed tab.
Last modified 1yr ago