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How to Create a Liquidity Pool on DODO

1. Navigate to the Create Pool Page

Navigate to the DODO Create Pool page (https://app.dodoex.io/dev/pool).
Connect your browser wallet. DODO supports most of the popular browser wallets, including MetaMask, Trust, TokenPocket, imToken, SafePal, and Coinbase Wallet.

2. Select Pool Type

Currently, DODO supports 3 different liquidity pool types: standard, pegged, and single-token. You cannot modify your pool’s parameters once it's been created. Upon creation, everyone is able to deposit liquidity into the pool.
  • ​Standard: Standard Pools are similar to Uniswap v2 pools in terms of capital allocation and efficiency. They require liquidity for both buy and sell side tokens.
  • ​Pegged: Pegged Pools are similar to Curve pools, and are suitable for synthetic assets.
  • ​Single-Token: Single-Token Pools are created with one token type only. They are useful for selling project tokens to raise funds. This type of pool allows you to create liquidity markets with the tokens you have and nothing more.

3. Configure Parameters

Standard Pool

Enter the amount of tokens you would like to supply as buy and sell side liquidity.
The initial price of the token pair follows the market price by default. Unchecking the “Fixed ratio at current price” option will expose you to the risk of being arbitraged.
If the “Fixed ratio at current price” option is unchecked, the initial price of your pool will be determined by the amount of tokens on the buy and sell sides. For example, if there are 1000 DODO as sell side liquidity, and 100 USDC as buy side liquidity, then the initial price would be 1 DODO = 0.1 USDC (100 USDC / 1000 DODO)
There are three options for the fee rate:
  • 0.01%: suitable for stablecoin trading pairs, such as USDT or BUSD
  • 0.3%: suitable for mainstream assets, such as BTC or ETH
  • 1%: suitable for exotic token pairs
Note: a low trading fee rate tends to attract more trading volume in the pool.

Pegged Pool

Enter the amount of tokens you would like to supply as buy and sell side liquidity.
The pegged exchange rate follows the current market price by default. Unchecking the “Fixed ratio at current price” option will expose you to the risk of being arbitraged.
You can uncheck the “Fixed ratio at current price” option and enter the pegged exchange rate for your pool manually. The initial price of your sell side asset will be the manually entered exchange rate.
There are three options for the fee rate:
  • 0.01%: suitable for stablecoin trading pairs, such as USDT or BUSD
  • 0.3%: suitable for mainstream assets, such as BTC or ETH
  • 1%: suitable for exotic token pairs
Note: a low trading fee rate tends to attract more trading volume in the pool.
There are three options for the Slippage Coefficient (k), and the value is set to 1 by default:
  • K = 0.5: suitable for most trading pairs
  • K = 0.01: suitable for trading pairs with low volatility, such as BUSD or USDT
  • K = 1: suitable for volatile assets
Note: the smaller the slippage coefficient, the lower the slippage for traders, and the deeper the market depth. To learn more, watch our video on slippage coefficients.

Single-Token Pool

Enter the amount of tokens you would like to supply as sell side liquidity.
The initial price follows the current market price by default. Unchecking the “Fixed ratio at current price” option will expose you to the risk of being arbitraged.
You can uncheck the “Fixed ratio at current price” option and enter the initial price for your pool manually. Your sell side liquidity will be sold at the manually-entered initial price.
There are three options for the fee rate:
  • 0.01%: suitable for stablecoin trading pairs, such as USDT or BUSD
  • 0.3%: suitable for mainstream assets, such as BTC orETH
  • 1%: suitable for exotic token pairs
Note: a low trading fee rate tends to attract more trading volume in the pool.
There are three options for the Slippage Coefficient (k), and the value is set to 1 by default:
  • K = 0.5: suitable for most trading pairs
  • K = 0.01: suitable for trading pairs with low volatility, such as BUSD or USDT
  • K = 1: suitable for volatile assets
Note: the smaller the slippage coefficient, the lower the slippage for traders, and the deeper the market depth. To learn more, watch our video on slippage coefficients.
Congratulations! You have created a liquidity pool on DODO.

Managing Your Pool

Go to the “My Pool List” section at the bottom of the "Create Pool" page, and click “Manage” to view the details of the pool, such as its trading volume, trading fee revenue, etc.
You can also click "Invite" to get a link to your liquidity pool, allowing you to share it with friends.

Adding or Removing Liquidity

To add liquidity to or remove liquidity from your new pool, check out the Liquidity Provision tutorial.

Risk Disclaimer

Liquidity provision is not risk-free, and there is always a possibility of loss. Please be careful when adding liquidity and make sure you understand the risks.