How to Create a Market Maker Pool on DODO
Connect your browser wallet. DODO supports most of the popular browser wallets, including MetaMask, Trust, TokenPocket, imToken, SafePal, and Coinbase Wallet.
Enter the amount of tokens you would like to supply as buy and sell side liquidity. Currently “Standard” and “Single-Token” pool models are supported for Market Maker Pools.
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.
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.
Congratulations! You have created a Market Maker Pool on DODO.
Go to the “My Pool List” section on the Market Maker Pool page, and click “Manage” to view the details of the pool, such as its trading volume, trading fee revenue, etc.
If you want to deposit or withdraw liquidity, you can directly modify the number of tokens.
Liquidity provision is not risk-free, and there is always a possibility of loss. Please be careful when proceeding and make sure you understand the risks.
Last modified 7mo ago