P00LS v2
  • THE P00LS PROTOCOL
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      • Adding an address to your token allowlist
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    • Liquidity Pools
      • FAQ: Liquidity with P00LS
      • FAQ: Common Liquidity Pool Questions
  • TOKEN DISTRIBUTION
    • Understanding Token Distribution
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  • P00LS EVENTS, GRANTS AND CONTESTS
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  • What are Liquidity Pools
  • Creating a Liquidity Pool
  1. P00LS Creator Tokens

Liquidity Pools

PreviousGuidelines for Liquidity PoolsNextFAQ: Liquidity with P00LS

Last updated 8 months ago

What are Liquidity Pools

In traditional markets, liquidity is defined as “the availability of liquid assets to a market or company; liquid assets; cash.” Another way to think about liquidity is the degree to which an asset can be bought or sold in the market without affecting its price.

Liquidity pools are an innovation within the blockchain industry and a vital part of decentralized finance (DeFi). They are smart contracts containing tokens supplied by the platform’s users.

A liquidity pool comprises a pair of tokens, token A and token B. We can also say that token A is paired with token B. When someone trades between tokens A and B on a decentralized exchange (DEX), they rely on tokens in the A/B liquidity pool. When someone buys token B, there are fewer B tokens in the liquidity pool, increasing the price of token B.

Creating a Liquidity Pool

Step 1: Update Transferability

You change your token from having limited transferability to

Step 2: Head to Uniswap

Step 3: Tell Your Community!

  • Once you've completed setting up your pool on Uniswap, you're ready to start trading your token!

  • Remember: Creating token utility is the best way to encourage engagement with your community and your liquidity pool.

Go to to easily create a pool for your token

Uniswap for how to set up a pool with your token

Uniswap
provides instructions
fully transferable via the
Creator Portal.