LogoLogo
  • Overview
    • WingRiders introduction
  • Liquidity pools
    • Constant Product
    • Stableswap
  • Actions
    • Creating a request
    • Swapping
      • Halting mechanism
    • Creating a liquidity pool
    • Adding liquidity
    • Removing liquidity
    • Reclaiming requests
  • Staking
    • Voting for Stake pools
    • How to vote
  • Entities
    • Swap user
    • Liquidity provider
    • Agent hosts
  • Boosting Vault
  • DAO Rules
    • Overview
    • Membership of WingRiders DAO
    • Proposals
    • Voting
  • Glossary
  • Portfolio
    • Profit and Loss
  • Launchpad
    • WRT Holders Tier
  • Battle of Pools
    • How Does It Work?
    • Rules and Process
    • Rewards and Fees
    • Strategy and Analysis
    • Technical Questions
    • Security and Transparency
    • Advanced Questions
    • Block-by-Block Tracking
Powered by GitBook
On this page
  1. Actions

Creating a liquidity pool

PreviousHalting mechanismNextAdding liquidity

Last updated 9 months ago

Anybody can create a . The only requirement is that the does not already exist.

Liquidity pool creators are also since they deposit the initial liquidity and are given 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 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 the requirements of the Cardano blockchain.

The creation of a liquidity pool can be seen in the following image:

Guide

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. Afterward, you will be prompted by your connected wallet to sign the transaction (example from Nami Wallet, the interface may differ in other wallets).

After successfully signing the transaction, WingRiders will inform you about a successful pool submission. You can track the progress of the pool creation in the Transactions tab, either by clicking Transaction list in the message window or clicking Transactions in the top right corner. After the transaction is confirmed, you will see your transaction in the Completed tab.

liquidity providers
liquidity pool
asset pair
LP tokens
arbitrage
User creates a new liquidity pool and receives LP tokens