Create Your Own Liquidity Pool – Easy & Fast!
Earn Fees by Providing Liquidity – No Experience Needed!
Last updated
Earn Fees by Providing Liquidity – No Experience Needed!
Last updated
📌 What is Liquidity Provision?
Liquidity refers to depositing funds into a Liquidity Pool (LP) to enable token trading.
Without a liquidity pool, token swaps are impossible.
Liquidity allows users to trade tokens anytime and ensures automatic price formation.
Once liquidity is added, other users can freely trade using the pool.
✅ Enables token swaps – Trading can only happen when liquidity exists
✅ Automatically determines prices – More liquidity results in more stable prices
✅ Liquidity providers earn trading fees – Every transaction generates fees distributed to LP providers
👉 Go to Liquidity Pool:
Providing liquidity on Solana is simple! Just follow these steps to create your own liquidity pool and start earning fees. 🚀
Before we start, let’s take a quick look at the Liquidity Pool creation screen:
Connect Your Wallet – First, connect your Solana wallet to get started.
Select Token Pair – Choose two tokens to create a liquidity pool.
Select Fee Tier – Select the transaction fee for trades within your pool.
Set Initial Price – Define the starting price of the token pair.
Add Initial Deposit – Deposit tokens to bootstrap the pool.
Complete & Activate Pool – Finalize your pool and start earning fees!
📌 Before creating your liquidity pool, connect your Solana wallet.
Click "Connect Wallet".
A pop-up will appear—select your preferred wallet. (e.g, Phantom, Solflare ...)
Approve the connection request.
Your wallet will be used to approve transactions and manage your token.
✅ Once connected, proceed to the next step!
📌 Choose two tokens to create a liquidity pool.
Select Token A – Click the dropdown menu and choose the first token.
Select Token B – The second token is usually SOL by default, but you can change it if needed.
Token Pairing Rules:
These two tokens will form a trading pair in the liquidity pool.
Example: If you select YourToken/SOL, users will be able to swap between YourToken and SOL.
Make sure you have enough of both tokens in your wallet to provide initial liquidity.
📌 When selecting Token A, a search box will appear.
Enter the token name, ticker, or address.
Be aware that multiple tokens may have the same name or ticker.
To ensure accuracy, search using the exact token address.
💡 Tip: If you’re creating a liquidity pool for a newly issued token, using the contract address ensures you select the correct one.
✅ Once you've selected the correct token, proceed to the next step!
📌 Choose the transaction fee that traders will pay when swapping tokens in your liquidity pool.
What is the Fee Tier?
This is the percentage of each trade that goes to liquidity providers.
Higher fees generate more revenue but may reduce trading activity.
Lower fees attract more trades but result in lower earnings per transaction.
📌 If you see "Already exists" next to a fee tier, it means a liquidity pool with that token pair and fee tier has already been created.
You cannot create a new pool with the same fee tier.
Instead, you should provide liquidity to the existing pool.
If you still want to create a new pool, Select a different fee tier that is not marked as "Already exists."
📌 Define the starting price for the selected token pair.
Enter the initial price of Token A in terms of Token B.
This determines the starting exchange rate for the liquidity pool.
Be sure to check the current market prices before setting the initial price.
Example: 1 DXL = 0.00001 SOL → This means each DXL token is initially priced at 0.00001 SOL.
💡 Tip: Double-check your initial price against decentralized exchange rates
📌 Set Initial Liquidity
Deposit tokens to bootstrap the liquidity pool.
Example: 100,000 DXL & 1 SOL → The deposit maintains a 50:50 ratio based on the initial price.
The estimated Total Value Locked (TVL) is displayed, showing the total value of the deposited assets.
A small pool creation fee (e.g., 0.02 SOL) may be required.
✅ Once the liquidity is added, click "Create Pool" to finalize the setup! 🚀
📌 Confirm & Create Pool
Your liquidity pool has been successfully created! 🎉
Pool ID is generated and can be used to track or manage the pool.
Click "Go Pool Manage Page" to access and monitor your liquidity pool.
Wait up to 5 minutes for the pool to be fully active on Dexlab.
⚠ Caution:
Never burn LP tokens! Burning LP tokens can disrupt the liquidity balance and affect the pool’s functionality.
✅ Your liquidity pool is now live! Start earning fees from trades! 🚀
