> For the complete documentation index, see [llms.txt](https://guide.dem.exchange/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.dem.exchange/community/permissionless-listings/permissionless-liquidity-pool-creation.md).

# Permissionless Liquidity Pool Creation

## Overview

Liquidity pools are pools of funds that are locked into a smart contract on a decentralized exchange (DEX). These funds are used to facilitate trades between different assets, without the need for an intermediary.

{% hint style="info" %}
Learn more about Liquidity Pools [here](https://guide.carbon.network/features/liquidity-pools).
{% endhint %}

Anyone can create liquidity pools for markets permissionlessly on [Demex](https://app.dem.exchange/).

Demex is a hybrid DEX that employs an [automated market maker (AMM)](https://guide.carbon.network/features/liquidity-pools/automated-market-maker-amm-model) and a [Central Limit Order Book (CLOB)](https://guide.carbon.network/features/decentralized-orderbooks). In order to enable trading, liquidity pools must be linked to their corresponding spot markets. On Demex, a liquidity pool is automatically linked to its corresponding spot market upon creation.

## Step-by-Step Guide

Creating a new pool on Demex is simple. Follow the steps outlined below.

**Step 1:** To get to the 'Create New Pool' feature, go to the [Pools](https://app.dem.exchange/pools) page on Demex and select the 'Create New Pool' option.

<figure><img src="/files/nAi6q6auwrXhfi5b2fkJ" alt=""><figcaption></figcaption></figure>

**Step 2**: Select the two assets that you want to create a Liquidity Pool for.&#x20;

<figure><img src="/files/sBwcAnlhC8uIzKzLuL5c" alt=""><figcaption></figcaption></figure>

**Step 3**: Set pool weightage.

<figure><img src="/files/JB3yyYaXzw1Mi9EYNX8a" alt=""><figcaption></figcaption></figure>

{% hint style="info" %}
**Example**\
For a 80% ETH / 20% SWTH liquidity pool, 80% of the total value locked in the liquidity pool is represented by ETH, while the remaining 20% is represented by SWTH. This ratio determines the price of each token in the pool, which is adjusted as trades are made.&#x20;

Learn more about Unequal Pool Weights [here](https://guide.carbon.network/features/liquidity-pools#unequal-pool-weights).&#x20;
{% endhint %}

**Step 4**: Deposit a proportionate value of both assets into the Liquidity Pool according to the pool weightage.

**Step 5:** Choose an amplification factor.

{% hint style="info" %}
Learn more about Amplified Pools [here](https://guide.carbon.network/features/liquidity-pools/amplified-pools).
{% endhint %}

**Step 6**: Ensure that the details shown match your desired Liquidity Pool information, then click on the 'Create' button.

**Step 7**: Liquidity Pool successfully created!

{% hint style="success" %}
That's it! Your token has been permissionlessly imported. You can now make a deposit using this token and [create a market ](/community/permissionless-listings/permissionless-market-creation.md)for it.
{% endhint %}


---

# Agent Instructions
This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com.

## Querying This Documentation
If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter:

```
GET https://guide.dem.exchange/community/permissionless-listings/permissionless-liquidity-pool-creation.md?ask=<question>&goal=<endgoal>
```

`ask` is the immediate question: it should be specific, self-contained, and written in natural language.
`goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal.

The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.