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Permissionless Liquidity Pool Creation
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.
Demex is a hybrid DEX that employs an automated market maker (AMM) and a Central Limit Order Book (CLOB). 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.
Creating a new pool on Demex is simple. Follow the steps outlined below.
Step 2: Select the two assets that you want to create a Liquidity Pool for.
Step 3: Set pool weightage.
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.
Step 4: Deposit a proportionate value of both assets into the Liquidity Pool according to the pool weightage.
Step 5: Choose an amplification factor.
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!