Creating a Pool
Last updated
Last updated
To create a pool, navigate to the Pools tab.
To the top right, you will see a Create Pool button. Click on this, and it will bring you to the page where you can open a new pool on Aftermath.
Click on Create Pool, and a new page will open where you will be prompted to set the parameters for your Pool. The first step is to decide on the type of Pool:
There are two types of invariants (curves) you can choose from for your pool: Uncorrelated and Stable. Uncorrelated is for assets whose prices fluctuate relative to each other, such as a pool with SUI, USDC, and BTC. The Stable invariant is for similar assets, such as various USD-pegged stablecoins, different variations of staked SUI, etc. Note that correlated pools must have equal weights of each asset. Uncorrelated pools may have whichever relative weights the creator of the pool chooses. Once you have chosen your Pool type, click Next.
There are various attributes of your Pool to specify on page two. We will review them all:
Pool Name: This is the name that will appear on the Pools page to users of the Aftermath app.
Trade Fee: Here you can set the fees charged to traders which go to liquidity providers. Typical fees are 0.3% for uncorrelated pools and 0.05% for stable pools, but you may specify any fee you wish.
LP Coin Name: This is the name of the LP token as it will display in wallets and on apps.
LP Coin Symbol: This is the name of the LP token as it will be stored on-chain.
Users may also opt to add a DAO fee to their pool. This is an aditional fee applied to all trades, deposits, and withdrawals from the pool, which are collected and sent to a specified address. These fees can then be used to fund the development, maintenance, marketing and incentives of the organization.
Once you have set all of the parameters on Page 2, click next.
Once you have specified the Names, Fee, Symbol, and Curve Type, it is time to choose the number and relative weight of coins in the pool. The default is two coins, but you can add more by clicking the Add Coin button. Note that you can only add coins which you hold in your wallet, as you must provide an initial deposit for each coin.
Using the dropdown menu, select a coin from the list, and enter the amount of the coin you wish to deposit into the pool. You can then select the desired weight of that coin relative to the entire pool. This weight can be anything from 1% to 99%, so long as the total of all of the coins adds up to 100%.
Once you have your initial deposit and the relative weight of all of the coins you would like in your pool, the Create Pool button will light up and you can proceed. If the fields are not filled out correctly, you will not be able to create the pool. You can review the parameters you set in the modal to the right, and may adjust any of them by clicking the Previous button to return to the other pages.
Pool creators have the option to burn the initial liquidity LP tokens upon pool creation. These LP tokens are sent to an unreachable address, and can never be retrieved. This means that all liquidity used to initially seed the pool will be locked in the pool forever.
This is applicable only to the initial deposit amounts of each coin in the pool. Any liquidity added to the pool after it has been created will be issued LP tokens as normal.
Creating pools is completely permissionless and no fee is charged to do so. With up to 8 assets at arbitrary weights, you can be quite creative when launching a new pool, so have fun!
